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critical performance variables have been analyzed and identified
2. appropriate goals have been set
3. feedback systems are adequate to track performance
-Conserving Attention- Instead of constantly monitoring a variety of internal processes and comparing results with preset targets and goals, managers receive periodic exception reports from staff accountants. If everything is OK then their job is done and things keep going. If not then the managers will invest time into the issue. This process is called management by exception.
Using Diagnostic Control Systems Effectively: To operate diagnostic control systems effectively, managers must ensure that they devote sufficient attention to five areas: setting goals, aligning performance measures, designing incentives, reviewing exception reports, and following up significant exceptions...
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