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DESCRIPTION
The 4 Levers of Control model, developed by Robert Simons, provides managers in large organizations a framework to manage the tension between Value Creation and Control (managing and measuring value).
Companies are always struggling with maintaining sufficient control in organizations that demand flexibility, innovation, and creativity. To reconcile the conflict between creativity and control, Simon suggests 4 Levers of Control:
1. Belief Systems
2. Boundary Systems
3. Diagnostic Control Systems
4. Interactive Control Systems
By leveraging these 4 control levers effectively, we can ensure the benefits of innovation and creativity are not achieved at the expense of control.
A Lever of Control can be defined as a formal, information-based routine or procedure that is used by management to maintain or alter patterns employee behavior.
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Source: Best Practices in Shareholder Value PowerPoint Slides: 4 Levers of Control PowerPoint (PPT) Presentation, PPTLab
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