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Economy of Control

Summary: [This abstract is based on the author's abstract.] Enlightened organizations that fully embrace process management are gaining the benefits of more effective control while relying less on controls. Four closely related types of economy-of-control measures are employed: (1) self-adjustment methods administered at the lowest organizational levels; (2) data based, operator centered process improvement; (3) visual information devices supplanting transactions and reports; and (4) a new set of direct performance metrics that facilitate the other three. Characteristics of economy-of-control approaches include: quick, nearly real-time feedback instead of delayed, aggregated reports; more focus on causal events and less on bottom line and top line symptoms; movement of oversight from middle and senior managers to frontline employees and teams; significantly reduced costs of control; and top to bottom training and retraining.

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  • Topics: Process Management
  • Keywords: Performance management,Employee ownership,Control systems,Process management
  • Author: Schonberger, Richard J.
  • Journal: Quality Management Journal