The purpose of this paper is to describe four levers that managers can use to effectively implement strategy.
Draws on the performance management literature, in particular Simons' levers of control framework, to describe and illustrate practical examples of diagnostic, belief, boundary, and interactive controls.
To fully realize the potential of their firm's strategy, managers need to get the levers to work in concert. Failure to accomplish this may result in underperformance, a loss of reputation, or even extinction.
To successfully implement their firm's strategy, managers must: get employees to buy into the firm's belief system; delineate those activities that may place their firm in jeopardy and declare these off limits to employees; communicate strategy to employees by developing metrics, setting targets, and aligning incentive; and become personally involved in those decisions which relate to strategic threats and opportunities in order to shape the firm's future direction.
Provides current examples of each of the four levers and articulates how they need to inter‐relate with one another.
