The Control Levers in Action
Now that each lever has been described in detail, we can examine how managers pick and choose among them to implement their strategic agendas. Control systems are not equal in either timing or purpose. They evolve to meet the information and control needs of individual managers and their organizations. To understand this, consider a simplified overview of how control systems are implemented over the life cycle of the firm (Figure 6.1).
In the start-up phase, there is little demand for formal control systems. Because employees are in constant face-to-face communication with each other, it is possible to control key aspects of the business without formal reporting structures. Internal accounting controls to ...