Boundary System


Definition: a Boundary System is a management system made out of rules and procedures, used to define the limits of freedom within the organization, such as: codes of conduct, predefined strategic planning methods, asset acquisition regulations, operational guidelines.
It is one of the 4 levers of control decribed by Simons to manage the tension in organizations between profit, growth, risk and control besides Belief Systems, Diagnostic Control Systems and Interactive Control Systems.


More on corporate governance: Agency Problem, Belief System, Board of Directors, CEO Duality, Chairman of the Board, more...


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