You are on page 1of 19

Question No.

1
Outline the management control
system at XEROX.
What Are the elements that makes
the system work ?
Management Control System
at XEROX
Conditions prior to 1970.
• Rigid System
• Emphasis on Accuracy
• Setting Unrealistic targets
• Inadequate data analysis
• Reporting & planning process was very
long and bureaucratic.
Management Control System
at XEROX
Problem raised during 1970 – 1980
• Patent for the plain paper copier expired,
inviting potential competitors.
• High attrition rate.
• Decrease in market share (96% to 45%).
• Low price offered by competitors.
• Reporting format were not consistent
between divisions.
Management Control System
at XEROX
Solution derived
• Leadership Through Quality.
• Finance Executive Council.
• Standard Reporting with Informal Trust
and Freedom.
• Competitive Benchmarking.
• Proper Goal Setting.
• Technological Innovations.
Elements of Control System
Control Assessor: Comparison
with standards
Device

Detector: Information Effector: Behavior


about what is happening Alteration, if needed

Entity
being
controlled
Key Elements
• Open Communication.
• Active Participation.
• Regular Interaction with line management.
• Training.
• Up to date Information Technology.
Key Elements
• Value Addition
– As per Al Senter
“If we can’t add value, then we don’t
belong to XEROX”.
• Continuous Improvement
– Comparison through Benchmarking.
Question No.2

What recent TRENDS in Xerox do


you see influencing the
management control process ?
• Earlier in 1970s Xerox had a culture where
accuracy and rigid system were more
important than listening to the customers.
• Unrealistic Target Setting.

WHY NEW TRENDS?


• The original patent for the plain paper
copier expired in 1970 – sending an
invitation to potential competitors.
NEW TRENDS
• XEROX Developed Quality Strategy
- Leadership Through Quality –

Competitive Employee Quality Improvement


Benchmarking Involvement Process

• With LTQ, management utilized operational measures


such as : Market Share
Customer Satisfaction
Various Quality Statistics
NEW TRENDS
• Making A Global Market through Joint
Ventures with :-
– Rank organization PLC, forming RANK
XEROX Ltd. (Market access to Europe, Africa
& Middle East).
– Partnership with FUJI Photo Film Co. in
JAPAN to create FUJI XEROX (Market
access to Japan & Asia).
NEW TRENDS
• Monthly Reports were replaced by
Quarterly Reports.
• An Informal Reporting System evolved,
which was not hammer but rather an
Open Discussion of issues.
• Also they maintained a standards of “NO
SURPRISES” and prompted trust among
the controllers.
NEW TRENDS
• Leasing Contracts rather than Equipment
Sale.
• Working with Line Management.
• Always looking World Class Organization
for IDEAS.
• Continuous Benchmarking.
Question No.3

In your opinion, how important


are organizational culture and
individual personalities in the
Xerox Control Process?
Organizational Culture

• Open Communication.
• Active Participation.
• Adv. Of LTQ.
• Accepting Changes.
• Business Division.
Individual Personalities
• Individual personality plays a very vital role
in any organizations growth.

For Xerox
– Al Senter
» (Financial Executive Council)
– David Kearns
» (Leadership Through Quality)
Individual Personalities
• David Kearns approach helped to achieve
following results:-
– Customer satisfaction increased.
– Revenue rose by 9% to record $13.6 billions.
– Profits increase by 23% to $599 millions.
– Returns on assets increased.

• Which help us to prove importance of


Organizational Culture and Individual
Personality in Xerox Control Process.

You might also like