Background: Management Control Systems (MCS) have been withheld as useful tools to support managers and increase performance, whereas Simons’ Levers of Control (LOC) increase the understanding of relations between different MCS. The characteristics of the public sector induce new dimensions of complexity in a municipal setting, where this study reveals how tensions exist between both levers and managers in turn impacting the performance of the organization. 

Purpose: The purpose of this study is to clarify the comprehensive use and efficiency of the MCS within Swedish municipal organizations. By using existing frameworks to acknowledge the unique challenges inherent, the relation between LOC and municipal performance is tested. 

Method: The study reconciles with the pragmatic paradigm, following an abductive mixed-method approach. The research problem is addressed through a sequential explanatory method, where the quantitative research accounts for the foundation of the study, and to further enhance the understanding of the data, qualitative interviews were conducted. 

Conclusion: This thesis reveals the intricate relationship between MCS and performance in Swedish municipal organizations, confirming the significance of MCS while challenging assumptions about LOCs’ direct impact on performance. By exploring the moderating role of professional discretion, the study underscores the importance of considering contextual factors in designing effective control mechanisms tailored to organizational needs.