Interactive Control Systems - Publications - Faculty & Research - Harvard Business School

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May 1992 (Revised January 2000)
Case

Asea Brown Boveri: The ABACUS System

By: Robert L. Simons

Describes the computer-based information system (ABACUS) used to monitor and control business operations in a complex, global company. Describes the technical attributes of the database system, financial reporting requirements, target setting and profit calculations on... View Details

Keywords: Financial Reporting; Profit; Business Growth and Maturation; Analytics and Data Science; Design; Accounting Audits; Growth and Development; Globalized Firms and Management; Complexity; Technology Industry

July 1990
Case

Ceramics Process Systems Corp. (B)

By: Kim B. Clark and Brent D. Barnett

Ceramics Process Systems (CPS) is an advanced ceramics company facing problems with lead time in product/process development, and late delivery of prototype parts to its customers. Engineering is confronted with difficult technical problems and multiple objectives... View Details

Keywords: Product Development; Business Processes; Management Practices and Processes; Supply Chain Management; Machinery and Machining; Goals and Objectives; Resource Allocation; Customer Satisfaction; Customer Value and Value Chain; Manufacturing Industry

September 1994
Case

American Airlines: Object Oriented Flight Dispatching Systems

By: F. Warren McFarlan and Espen Andersen

American Airlines Describes has organized and developed their Systems Operation Control (SOC) center in Dallas, from which the day-to-day running of the airline takes place. This case details the decision support system used by the flight dispatchers, and the... View Details

Keywords: Technological Innovation; Product Development; Programs; Complexity; Technology Adoption; Air Transportation; Air Transportation Industry; United States

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February 1990 (Revised July 1990)
Case

Internal Revenue Service: Automated Collection System

By: Nitin Nohria

Describes how the IRS's collection operations changed from a largely manual system (COF) to an automated system (ACS). A central aspect of ACS was the electronic scheduling and maintaining of work. While with ACS the IRS accomplished significant improvements in the... View Details

Keywords: Sovereign Finance; Revenue; Information Technology; Taxation; Change Management; Organizational Change and Adaptation; Organizational Design; Human Resources; Public Administration Industry; United States

April 1998 (Revised May 2000)
Case

Guidant Corporation: Shaping Culture Through Systems

By: Robert L. Simons and Antonio Davila

Guidant is a successful IPO start-up selling pacemakers and defibrillators. The case describes how managers install systems to balance innovation and control. Three parts of a shareholder value strategy are described. Controls include incentive systems, beliefs... View Details

Keywords: Innovation Strategy; Corporate Strategy; Motivation and Incentives; Planning; Risk Management; Management Systems; Business Strategy; Value Creation; System; Service Industry; Financial Services Industry; Medical Devices and Supplies Industry

2022
Working Paper

TalkToModel: Explaining Machine Learning Models with Interactive Natural Language Conversations

By: Dylan Slack, Satyapriya Krishna, Himabindu Lakkaraju and Sameer Singh

Practitioners increasingly use machine learning (ML) models, yet they have become more complex and harder to understand. To address this issue, researchers have proposed techniques to explain model predictions. However, practitioners struggle to use explainability... View Details

Keywords: Natural Language Conversations; Predictive Models; AI and Machine Learning

2014
Working Paper

The Effect of Management Control Elements on Coordination

By: Sara Bormann, Jan Bouwens and Christian Hofmann

This study examines how control elements of a firm affect coordination among profit centers. The firm operates a network of 59 profit centers. It uses a transfer-pricing system designed to account for interdependencies between profit centers and to induce coordination.... View Details

Keywords: Business or Company Management; Organizational Structure; Performance

February 2020
Case

Fake News at DER SPIEGEL (A)

By: Aiyesha Dey, Jonas Heese and Tonia Labruyere

The case discusses the strategy of DER SPIEGEL, the leading news magazine in Germany, in the aftermath of the discovery of a fake reporting scandal. It had come to light that one of DER SPIEGEL’s own reporters had falsified and made up entire articles for years,... View Details

Keywords: Scandal; Management Control Systems; Corporate Governance; Crisis Management; Communication Strategy; Journalism and News Industry; Germany

June 1998
Article

Using Delegation and Control Systems to Mitigate the Trade-off between the Performance-Evaluation and Belief-Revision Uses of Accounting Standards

By: V.G. Narayanan and A. Davila

Keywords: System; Performance Evaluation; Accounting

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March 2005 (Revised July 2007)
Case

Capital Controls in Chile in the 1990s (A)

By: Laura Alfaro, Rafael M. Di Tella and Ingrid Vogel

In 1991, Chile adopted a framework of capital controls focused on reducing the massive flows of foreign investment coming into the country as international interest rates remained low. Capital inflows threatened the Central Bank's ability to manage the exchange rate... View Details

Keywords: Developing Countries and Economies; Economic Growth; Financial Crisis; Capital; Governance Controls; Business and Government Relations; Chile

May 2017 (Revised June 2017)
Case

ATH Technologies (A): Making the Numbers

By: Robert Simons and Jennifer Packard

An exercise that takes students through five stages of growth in an entrepreneurial start-up in the medical devices industry: 1) founding, 2) growth, 3) push to profitability, 4) refocusing process, and 5) takeover by new management. At each stage, students must... View Details

Keywords: Strategy And Execution; Management Control Systems; Balancing Innovation And Control; Performance Management; Business Growth and Maturation; Business Startups; Profit; Geographic Location; Governance Controls; Innovation and Invention; Management Succession; Performance Evaluation; Medical Devices and Supplies Industry

March 2014
Article

Choosing the Right Customer

By: Robert Simons

Companies that win in competitive markets identify a primary customer and dedicate maximum resources to meeting that customer's needs. This article will show you how to identify the best primary customer for your business by analyzing perspective, capabilities, and... View Details

Keywords: Strategy Execution; Customer Focus; Organization Design; Accountability; Management Control Systems; Customer Relationship Management; Organizational Design

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September 2016
Article

The Effect of Target Difficulty on Target Completion: The Case of Reducing Carbon Emissions

By: Ioannis Ioannou, Shelley Xin Li and George Serafeim

Targets are an integral component of management control systems and play a significant role in achieving desirable performance outcomes. We focus on a key environmental performance objective—reduction of carbon emissions—as a setting in which to examine how target... View Details

Keywords: Sustainability; Target-setting; Management Accounting; Management Accounting And Control Systems; Control Systems; Sustainable Development; Environment; Goals and Objectives; Climate Change; Management Systems; Accounting; Environmental Sustainability

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August 2023
Article

Explaining Machine Learning Models with Interactive Natural Language Conversations Using TalkToModel

By: Dylan Slack, Satyapriya Krishna, Himabindu Lakkaraju and Sameer Singh

Practitioners increasingly use machine learning (ML) models, yet models have become more complex and harder to understand. To understand complex models, researchers have proposed techniques to explain model predictions. However, practitioners struggle to use... View Details

Keywords: AI and Machine Learning; Technological Innovation; Technology Adoption

18 Apr 2012
Research & Ideas

HBS Cases: Who Controls Water?

actual cost. Possible Solutions Reinhardt shifted the conversation to discussing solutions, such as assigning property rights to water. "In a way the history of Europeans and Asians on this continent has been the story of environmental abundance converted to... View Details

Keywords: by Maggie Starvish; Agriculture & Agribusiness

2023
Working Paper

When Does Gamified Training Improve Performance? The Roles of Office and Leader Engagement

By: Ryan W. Buell, Wei Cai and Tatiana Sandino

Gamified training is a novel management control system in which companies use gamification techniques to engage and motivate employees to learn. This study empirically examines the performance consequences of gamified training using data from a natural field... View Details

Keywords: Gamified Training; Management Control Systems; Employee Engagement; Employees; Learning; Training; Motivation and Incentives; Performance

July 1987 (Revised October 1995)
Case

Phillips 66: Controlling a Company Through Crisis

By: Lynda M. Applegate

The downstream operations subsidiary of a major U.S. petroleum company is faced with major restructuring decisions and responds by developing an Executive Information System (EIS) which allows for increased responsiveness, wider span of control, and higher levels of... View Details

Keywords: Restructuring; Information Management; Governance Controls; Organizational Design; Crisis Management; Communication; Management Teams; Growth Management; Mining Industry; Energy Industry; United States

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March 1999 (Revised March 2017)
Teaching Note

J Boats, Inc.

By: Robert Simons

Teaching Note for J Boats (197-015) View Details

Keywords: Execution; Control Systems; Levers Of Control; Strategy

May 2011 (Revised March 2013)
Case

Marshall & Gordon: Designing an Effective Compensation System (A)

By: Heidi K. Gardner and Kerry Herman

CEO Kelly Browne wrestles with the design of a new compensation system to promote the collaboration and cross-selling necessary for supporting her firm's new strategy. Marshall Gordon International, a global public relations (PR) firm, has recently expanded its service... View Details

Keywords: Change Management; Customer Relationship Management; Compensation and Benefits; Retention; Growth and Development Strategy; Growth Management; Organizational Culture; Partners and Partnerships; Motivation and Incentives; Alignment; Public Relations Industry

May 2017
Case

ATH Technologies: Making the Numbers

By: Robert Simons and Jennifer Packard

An exercise that takes students through five stages of growth in an entrepreneurial start-up in the medical devices industry: 1) founding, 2) growth, 3) push to profitability, 4) relocation process, and 5) takeover by new management. At each stage, students must... View Details

Keywords: Balancing Innovation And Control; Performance Evaluation; Strategy And Execution; Management Control Systems; Risk Management; Business Growth and Maturation; Business Startups; Profit; Geographic Location; Governance Controls; Innovation and Invention; Management Succession; Medical Devices and Supplies Industry

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