Xerox Corporation 1. Outline the management control system at Xerox.

What are the key elements that make thesystem work?Xerox's management control system concentrated and focused on the responsibility andperformance of 12 units, which consisted of 9 business units and 3 geographic customeroperations divisions supporting them. The main focus for Xerox s management is the businessmanagement level that linkages markets and technology.There are three elements which make the system works: y Way of the measurements established.The measurements are the combination of financial and operational targets.Xerox Corporation apply Leadership through Quality (LTQ) and competitive benchmarking asmain tools to measure operational efficiency. LTQ used in order to make sure that the productsmeets the world class quality requirements while competitive benchmarking helps theoperational business units compare Xerox s product, services, and business practice withcompetitors.Financial Executive Council (FEC) established to controll the financial performence of businessunits. The objective of FEC is adding value to the management process, moreover FEC analyizethe financial information to support the business decision. y The culture in Xerox Corporation.The working culture in Xerox are employee expected to be proactive and use analytical approachin solving problems. The employee s involvement in achieving company s target is the biggestconcern too. The other culture is open communication y U nit controller of Xerox.Another key element of success was the fact that unit controllers knew both the financial andoperational aspects of the business.A combination of all the elements ensured the durability and high effectiveness of themanagement control system implemented in Xerox.2. What recent trends at Xerox do you see influencing the management control process?Leadership through Quality (LTQ) is the recently trend that influencing the management controlprocess. This strategy focuses on two aspects which are: y Employee involvement.This aspect focuses on relation and integration of employees within company to achieve thecompany s target. For example, everyone within company should help each other in analyze andsolve problems. y Competitive benchmarking and quality improvement.Comparing Xerox s products, services, and business practice with competitors. This aspect alsoconcern on company s learning process for its own improvement in products, services, and otherpractices within company.3.

In your opinion, how important are organizational culture and individual personalities in theXerox control process?Organizational culture and individual personalities within company are crucial elements todetermine the success and sustainability of the company itself.It is very dificult to get employee acceptance to change. Thus, by having good culture withincompany, the needs of changing employees behavior minimize since employee s objectivesalready meet with the company s objectives. The result is goal congruence has been achieved