Diagnostic Control System

   

Definition: a Diagnostic Control System is a traditional management control system used to monitor and optimize targets and outcomes: budgets, performance management and measurement, business plans, valuation standards, incentive systems and compensation systems.
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, Boundary Systems and Interactive Control Systems.


   
   

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



   

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