I previously wrote about the potential tension between Performance Appraisal – a process of setting targets and measuring staff against them – and Development Review – an iterative process of developing learners – as two halves of a Talent Management strategy. Within the NHS, in England at least, increasingly being encouraged to combine appraisal and development into an integrated process, there is a risk that these tensions increase.

I’ve recently been researching and working with ‘Levers of Control’ and thought you’d like to know about how I see this model being a useful tool to understand and work with this inherent tension.

In his book ‘Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal’ (1995), Robert Simons introduced the Levers of Control framework, giving HR and managers within large organisations such as the NHS, a framework to manage the tension between value creation and control (managing and measuring value). The four ‘Levers of Control’ are defined as any formal information-based routine or procedure that is used by HR and management to maintain or alter patterns of organisational behaviour.

1. Belief systems – are those from a strategic perspective, that must be put in place by an organisation, so that it can obtain commitment to the organisational vision, core values, mission statements, vision statements and purpose.
2. Boundary systems – which an organisation must strategically position so that it can specify the boundaries for staff: codes of conduct, predefined planning methods, HR and operational procedures.
3. Diagnostic control systems – these must be put in place by an organisation so that it can strategically plan through set inputs and get the job done through output measurement, quality standards (CQC, NHSLA, QIPP), Performance Appraisal and reward systems.

1. Interactive control systems – a learning organisation uses patterns of action and double loop learning for tracking new innovations, for triggering new learning, and for positioning the organisation for future challenges, incorporating process and staff data into management interaction (e.g. the KSF), coaching and Development Review meetings with staff.

The selection and use of the four ‘Levers of Control’ is a crucial decision for HR and management….their choice reflects the organisational values, reveals their opinion of staff they manage, affects the probability of the achievement of objectives and ultimately influences the organisation’s long-term ability to adapt and be successful.

Building on the previous theme of Performance Appraisal and Development Review (PADR), here are some key questions to ask in relation to the ‘Levers of Control’ applied to a Human Resources context:

• Have you as a senior manager or HR professional, communicated the core values of the organisation in a way that people understand and embrace?
• Have you clearly identified the specific actions and behaviours that are not allowed?
• Are the organisational diagnostic control systems adequate at monitoring Performance Appraisal, and compliance against statutory and mandatory training?
• Are the organisational control systems interactive and have they been designed to stimulate learning through coaching and Development Review?

You also may want to think about and comment on the following within your organisation:

• What are the challenges and the benefits of using a Performance Appraisal system?
• Does Performance Appraisal (diagnostic control) effectively link to your Development Review (interactive) and learning management processes (interactive and diagnostic)?
• How can Performance Appraisal and Development Review (PADR) help you improve staff engagement and performance, through the use of ‘Levers of Control’?
• Can PADR and effective learning management help you improve your organisational risk profile and improve patient care?

Shaun Wilde
Director of Workforce Services

About Shaun Wilde

Shaun is our Director of Workforce Technology and has worked with Think Associates from its earliest days back in 2004. He has a specialist interest in learning technologies and in particular e-learning development, Microsoft SharePoint, and cloud-based e-learning. As a dual qualified Chartered HR & Microsoft Certified IT Professional he focuses on developing technology solutions that enable workforce productivity in the context of HR, Learning & Development. Shaun has a MBA from Manchester Business School and is a NLP Master Practitioner.

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