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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.


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

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