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Question No.

Outline the management control system at XEROX. What Are the elements that makes the system work ?

Management Control System at XEROX

Conditions prior to 1970. Rigid System Emphasis on Accuracy Setting Unrealistic targets Inadequate data analysis Reporting & planning process was very long and bureaucratic.

Management Control System at XEROX

Problem raised during 1970 1980 Patent for the plain paper copier expired, inviting potential competitors. High attrition rate. Decrease in market share (96% to 45%). Low price offered by competitors. Reporting format were not consistent between divisions.

Management Control System at XEROX

Solution derived Leadership Through Quality. Finance Executive Council. Standard Reporting with Informal Trust and Freedom. Competitive Benchmarking. Proper Goal Setting. Technological Innovations.

Elements of Control System

Control Device Detector: Information
about what is happening

Assessor: Comparison
with standards

Effector: Behavior
Alteration, if needed

Entity being controlled

Key Elements
Open Communication. Active Participation. Regular Interaction with line management. Training. Up to date Information Technology.

Key Elements
Value Addition
As per Al Senter If we cant add value, then we dont belong to XEROX.

Continuous Improvement
Comparison through Benchmarking.

Question No.2
What recent TRENDS in Xerox do you see influencing the management control process ?

Earlier in 1970s Xerox had a culture where accuracy and rigid system were more important than listening to the customers. Unrealistic Target Setting.


The original patent for the plain paper copier expired in 1970 sending an invitation to potential competitors.

XEROX Developed Quality Strategy - Leadership Through Quality
Competitive Benchmarking Employee Involvement Quality Improvement Process

With LTQ, management utilized operational measures such as : Market Share Customer Satisfaction Various Quality Statistics

Making A Global Market through Joint Ventures with : Rank organization PLC, forming RANK XEROX Ltd. (Market access to Europe, Africa & Middle East). Partnership with FUJI Photo Film Co. in JAPAN to create FUJI XEROX (Market access to Japan & Asia).

Monthly Reports were replaced by Quarterly Reports. An Informal Reporting System evolved, which was not hammer but rather an Open Discussion of issues. Also they maintained a standards of NO SURPRISES and prompted trust among the controllers.

Leasing Contracts rather than Equipment Sale. Working with Line Management. Always looking World Class Organization for IDEAS. Continuous Benchmarking.

Question No.3
In your opinion, how important are organizational culture and individual personalities in the Xerox Control Process?

Organizational Culture
Open Communication. Active Participation. Adv. Of LTQ. Accepting Changes. Business Division.

Individual Personalities
Individual personality plays a very vital role in any organizations growth. For Xerox
Al Senter (Financial Executive Council) David Kearns (Leadership Through Quality)

Individual Personalities
David Kearns approach helped to achieve following results: Customer satisfaction increased. Revenue rose by 9% to record $13.6 billions. Profits increase by 23% to $599 millions. Returns on assets increased.

Which help us to prove importance of Organizational Culture and Individual Personality in Xerox Control Process.