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This study aims to understand how family values, family managers and non-family managers influence the institutionalization of management control systems in family firms.

A case study was conducted in a family business group that underwent a process of adoption and transformation of its management control system.

The results indicate that several non-family managers, besides the controller, played crucial roles in harmonizing the logic of a generalized practice (quality control management) with the existing rationalities of the family firm. The authors also observed that the ISO 9001/quality control management logic together with the family values of professionalism, meritocracy and an emphasis on the business’s identity rather than the family identity have laid the groundwork for the formalization of the business group’s management controls.

This study shows that quality control management is an accessible source of guidance for the formalization of managerial activities within an organization.

This paper contributes to the literature by clarifying the role performed by non-family managers during the formalization of management control in family firms. It also shows how the family values of professionalism, meritocracy and an emphasis on the business’s identity rather than family identity can influence the way control is exercised within family firms.

This study extends prior balanced scorecard (BSC) research by incorporating the effects of uncertainty, payment schemes and the strength of causal relations proposed in the performance measurement model (PMM) on the budgetary dynamics. Our analysis was restricted to two strategic business units (SBU), engineering projects and electricity distribution service, from a Brazilian electric power concessionaire. We postulate a mediated moderation association between uncertainty (treatment), bonus scheme (mediator), dispersion of payment scheme and the strength of causal relations proposed in the PMM (moderators) on budgetary slack (outcome). Additionally, we postulate that the use of accounting-based measures (ABM) also mediates the effect of uncertainty on budgetary slack. We gathered monthly observations from 102 indicators containing the target and achievement values throughout 2002–2006. Managers were later asked to answer questionnaires about the possible cause–effect relations between these indicators, then 215 causal maps of the department and corporate indicators were drawn up. Econometric analysis provided evidence that the budgetary slack observed is directly impacted by uncertainty, and this impact is moderated by the dispersion of payment scheme. However, we did not find any evidence that supported the mediation process proposed between uncertainty, ABM and budgetary slack. Incomplete implementation of BSC and the level of analysis adopted are possible explanations for that.