1. Outline the management control system at Xerox. What are the key elements that make the system work?
The Xerox’s control system was flexible. Each business units developed it annual and long-range plans. Those plans were consolidated into the Business and customer Operations division plans. The feedback system was facilitating the planning process cycle. LTQ( leadership through quality) was a major part of their measurement scheme. The measurement system is composed of financial and operational targets. Management linked growth and profit measures to the unit’s business economy with operational measures linked to world-class benchmarking performance.
Employee involve was a main factor of LTQ process. The FEC( financial executive council was established in parallel with the start of LTQ and competitive Bench marking activities. The FEC was developed with the objective of adding value to the management process rather than simply producing financial figures. The informal channel of reporting completed the formal channel thus strengthening and enhancing cohesiveness, integrity in the company.
2. what recent trends at Xerox do you see influencing the management control process?
The LTQ is currently influencing the management control process. There are three important aspects, employee involvement, competitive benchmarking and quality improvement process. Xerox changed its strategy from letting the technology to be the key for the company’s direction to letting the market dictate its direction in the 90s. this new strategy helped the company to record a 1997 increase in profits and win the approvel of analysts. Among more recent trends at Xerox have been cost-cutting efforts and a new array of digital products. These trends have been a result of the company’s expansion efforts to compete with companies.