Case Study 2: Xerox Corporation:
Xerox Corporation Question No.1
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 as the central focal point for the finance function at Xerox * Standard Reporting with Informal Trust and Freedom. * Competitive Benchmarking. * Proper Goal Setting. * Technological Innovations.
Key Elements * Open Communication. * Active Participation. * Regular Interaction with line management. * Training. * Up to date Information Technology. * Value Addition * As per Al Senter “If we can’t add value, then we don’t 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. WHY NEW TRENDS? * The original patent for the plain paper copier expired in 1970 – sending an invitation to potential competitors.
NEW TRENDS * XEROX