This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Explore the Levers of Control (LoC) framework, developed by ex-McKinsey & Big 4 consultants, to enhance organizational control and creativity. Levers of Control (LoC) is a 31-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.
Managers in the 1990s grappled with the pivotal challenge of maintaining sufficient control in their organizations. Those changing times required ingenuity and adaptability to manage the employees. In highly competitive industries with diverse clientele, organizations had to depend on employee imagination and creativity to seize opportunities and meet customer demands.
The challenges of maintaining control exposed businesses to excessive risks or led to behaviors that harmed an organization's reputation. Control failures harmed the organizations substantially in terms of reputational damage, fines, business setbacks, and lost opportunities.
This PowerPoint presentation explains the Levers of Control (LoC) framework postulated by Robert Simons, a Harvard professor. LoC aims to strike a balance between managing and controlling an organization.
The Levers of Control model encompasses 4 levers:
1. Belief Systems – These convey core values and prompt people to support the company's mission.
2. Boundary Systems – These establish limits and guide people about undesirable, intolerable behaviors.
3. Diagnostic Control Systems – These measure and track strategy execution and inform resource allocation.
4. Interactive Control Systems – These entail dynamic information flow and the engagement of leadership across all ranks of the organization to tackle ambiguities and insecurities.
These 4 control levers assist managers in their endeavor to stimulate employee creativity, proactivity, and belonging to a shared sense of purpose. Each lever of the LoC model serves different purposes in connection with the organization's Business Strategy and goals.
This presentation discusses each Lever of Control in detail, including identifying compatible management styles and the appropriate business strategy. Additional topics discussed include the 6 influential factors (within the organizational environment), several LoC case studies, objectives & behaviors, among others.
This PowerPoint presentation on the Levers of Control (LoC) also includes some slide templates for you to use in your own business presentations.
This PPT slide outlines the Levers of Control model, focusing on 2 critical elements: Objectives and Behaviors. Objectives represent the strategic goals organizations aim to achieve, guiding decision-making and providing a framework for measuring performance and progress. They align efforts across various units, ensuring a common purpose. Behaviors pertain to the actions and decisions of individuals within the organization, emphasizing the interactions among employees, managers, and external stakeholders. This section explores the motivations and cultural norms that shape these behaviors, which are essential for implementing effective control systems. A balanced focus on both objectives and behaviors is vital for maintaining organizational control in a dynamic environment.
This PPT slide presents a case study of General Electric (GE) and its implementation of the Levers of Control framework to enhance organizational performance. Under Jack Welch's leadership, GE fostered a performance-driven culture to address challenges in its financial services division. The framework includes 4 key areas: Belief Systems, Boundary Systems, Interactive Control Systems, and Diagnostic Control Systems.
Belief Systems emphasize a cultural shift towards excellence and customer focus. Boundary Systems establish clear performance thresholds, leading to the reorganization or divestment of underperforming units while reinforcing ethical conduct. Interactive Control Systems involve "Session C" reviews that challenge assumptions and maintain alignment. Finally, Diagnostic Control Systems highlight GE's adoption of the Six Sigma Quality Management program to identify and eliminate defects, supported by financial performance metrics. This structured approach facilitated a robust performance culture, driving efficiency and excellence.
Diagnostic Control Systems are essential for organizations pursuing cost leadership strategies, serving as management tools to monitor performance against standards. They track metrics like goals, revenue growth, and market share, ensuring outputs align with cost targets and operational efficiency. These systems are best suited for large, mature organizations with consistent processes and measurable objectives. They align with results-oriented management styles, such as Management by Objectives (MBO), emphasizing the importance of feedback mechanisms for adjusting inputs and processes. However, over-reliance on Diagnostic Control Systems can pressure employees and undermine other controls, highlighting the need for a balanced approach to management controls. Overall, these systems drive efficiency and cost control within organizations.
The "Levers of Control Model" identifies 6 critical factors influencing organizational control mechanisms: Culture, Strategy, Scope, External Environment, Technology, and Organizational Structure. Culture shapes employee engagement with control systems, necessitating tailored approaches based on cultural values. Strategy dictates the choice of control systems, aligning them with competitive objectives. Scope highlights challenges in large organizations, requiring customized control systems for different divisions. The External Environment emphasizes the need for agility in control mechanisms to adapt to market dynamics. Rapid technological evolution demands constant adjustments in control systems. Finally, Organizational Structure affects power distribution and the implementation of control levers. Balancing these factors is essential for effective and adaptive control systems that drive performance.
Belief systems within organizations are essential for fostering innovation and adaptability to evolving customer demands. They serve as a lever that communicates core values, mission, and purpose, guiding employee behavior to align with company objectives. These systems articulate commitments to stakeholders, including employees and customers. Organizations aiming to cultivate strong cultures, particularly startups or those undergoing transformation, benefit from well-defined belief systems that unify actions under shared ideals. Belief systems thrive in participative and transformational management environments, enhancing employee engagement and motivation, which leads to improved performance and innovation. Additionally, they are suitable for differentiation strategies that rely on innovation and robust company cultures, indicating that clear belief systems are vital for organizations seeking to stand out in competitive markets.
Source: Best Practices in Leadership, Controls and Planning, Control PowerPoint Slides: Levers of Control (LoC) PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
For $10.00 more, you can download this document plus 2 more FlevyPro documents. That's just $13 each.
ABOUT FLEVYPRO
This document is part of the FlevyPro Library, a curated knowledge base of documents for our FlevyPro subscribers.
FlevyPro is a subscription service for on-demand business frameworks and analysis tools. FlevyPro subscribers receive access to an exclusive library of curated business documents—business framework primers, presentation templates, Lean Six Sigma tools, and more—among other exclusive benefits.
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Trusted by over 10,000+ Client Organizations
Since 2012, we have provided business templates to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact
that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world.
"
– Roberto Pelliccia, Senior Executive in International Hospitality
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."
– Royston Knowles, Executive with 50+ Years of Board Level Experience
"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.
The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."
– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."
– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."
– David Coloma, Consulting Area Manager at Cynertia Consulting
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.
The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."
– Dennis Gershowitz, Principal at DG Associates
"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."
– Moritz Bernhoerster, Global Sourcing Director at Fortune 500
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."
– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
Download our free compilation of 50+ slides and templates on Organizational Design, Change Management, and Corporate Culture. Methodologies include ADKAR, Burke-Litwin Change Model, McKinsey 7-S, Competing Values Framework, etc.
Click main image to view in full screen.
