Levers of Control


Definition: Levers of Control is a management control framework by Robert Simons (1995) in which he describes 4 ways of exercising control and simultaneously promoting innovation by management to maintain or alter patterns in organizational activities and behavior:
- Belief Systems
- Boundary Systems
- Diagnostic Control Systems
- Interactive Control Systems
Managers must find a good balance between the 4 levers to manage the tensions between profit, growth, risk and control in their organization.


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


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