From diagnostic to interactive style of management control

Abstract

Simons (1995) identified two main kinds of controls: diagnostic and interactive. Nevertheless he did not study the possibility of the evolution of these concepts from one kind to the other. We have researched the possibility of this evolution and its reasons. We have studied the case of a ceramic company. Before 2000 the control system of this Company was based on large and exhaustive reports that were discussed every month by the board of directors. Simons defined this kind of control as diagnostic. After suffering a crisis in 2000 the board of directors created new reports based on non‐financial indicators. The board of directors monitored these data weekly spending long hours analysing both the outcomes and the questions arising from them. Most of middle managers of the firm were involved in this reporting system. This kind of control is the one defined by Simons as interactive.

Citation

Martínez Ramos, M. and Gutiérrez Hidalgo, F. (2003), "From diagnostic to interactive style of management control", Management Research News, Vol. 26 No. 5, pp. 21-31. https://doi.org/10.1108/01409170310783448