Professional Documents
Culture Documents
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
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
• 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.