Post on 23-Nov-2014
transcript
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
Detector: Informationabout what is happening
ControlDevice
Entitybeing
controlled
Assessor: Comparisonwith standards
Effector: BehaviorAlteration, if needed
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?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 ImprovementBenchmarking 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.