The good design principles and tests - The control and commitment principle

5 important questions on The good design principles and tests - The control and commitment principle

Describe the goal of control and commitment principle?

Effective decentralization (alignment of goals, targets, monitoring, and incentive systems. Performance and innovation are important)

What is the reason of combining 'control and commitment'?

Because they both depend on self-correcting relationships and appropriate performance measures.

Why are self-correcting relationships (scr) important?

If a unit doesn't perform well, it will experience strong pressure to improve through its lateral relationships. With self-correcting relationships fewer measures are necessary. Designers should establish units to have as much as self-correcting relationships.
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Name two kinds of control that keep control cost low and motivation high?

1 Subjective judgment by the parent manager who has a close understanding of processes and respect of the managers of the units (= rare).
2 More common is control process that is built round targets and performance measures

Performance measures need to have a number of qualities. Which 4? 

1 It has to match well with responsibilities
2 It should be easy to monitor and interpret
3 When performance measures are complicated/subjective/imprecise, managers will be confused about priorities and less motivated to deliver. Measures are clear and objective: more commitment.
4 Economical to collect: f.e. an objective, outcome-based measure.
>> To summarize: objectively measurable, outcome-oriented, benchmarkable (maatstaf/ijkpunt), few in number 

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