Figure above indicates three levels of business activities or processes carried out in operating a company. These three levels were first described by Robert B. Antony in 1965 and are still used to portray the fuctioning of a business enterprise.
The first level, Operational Control indicates processes performed to control the basic product or services produced by the company in a manufacturing company. In a manufacturing company, example of operational control are the processes that move a product from one assembly point to the next and the actions that take place at each assembly point. In a bank, operational control includes the physical sorting, recording, and posting of check.The next level, Management Control includes processes or functions that facilitate the management of those processes delegated to the operational control level.
An example of a management control process is production scheduling, where a system is established to schedule products through the various fabrication and assembly points within a factory. The feedback from the production scheduling processes enables management control to control the operational.
The top level of the triangle represents Strategic Planning Process, the process that determined what products to produce in the first place or, even more broadly, what markets or business the company should be in currently or plan to be in the future. These are brief examples or definitions of these three level; later post will build on this basic Antony’s triangle. It represents a very useful classifications schematic for establishing the proper perspective and providing a foundation for beginning the exploration of MIS (Management Information System)