Symptom: An internal staff group is not allowed to charge full cost for a custom product.
Internal controls may dictate what a staff can and cannot charge for its services.
Internal regulations are controllable. Well, at least it doesn't take an act of Congress. Generally, fixing dysfunctional regulations requires a very effective presentation of facts and alternatives to top executives.
Of course, controls cannot be simply eliminated. The goal is to move controls to the appropriate place in the organizational system, so that they don't distort decisions.
The analysis and redesign of economic controls is squarely in the dimension of internal economy.
Root cause:Internal economy, pricing copyright 2024 N. Dean Meyer and Associates Inc. All rights reserved.
