Simon's four levels of control

Abstract

In his book "Levers of Control: How managers use innovative control systems to drive strategic renewal" (1995), Simon proposes a framework formed by four blocks. The Levers of Control Framework (LOC framework) is constituted by four blocks: Belief systems and Interactive Control systems creating positive forces, and Boundary Control Systems and Diagnostic Control Systems creating negative forces. It has to be noted that positive/negative forces are not considered as good/bad forces but as different types of forces that must be balanced to achieve proper business strategy. Despite the fact that his theory about opposing forces allowing to manage tensions between direction and creativity has been criticized for giving ambiguous and unclear definitions of its control blocks or levers, the number of citations (over 3000 in Google Scholar) gives Simon´s LOC framework a consolidated position within Management Control Systems literature. This article intends to give a theoretical basic description of the LOC framework and provide an oversight on the ambiguities observed in the literature.