• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Strategy control
 

Strategy control

on

  • 7,857 views

 

Statistics

Views

Total Views
7,857
Views on SlideShare
7,856
Embed Views
1

Actions

Likes
2
Downloads
212
Comments
0

1 Embed 1

https://twitter.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Strategic control simply means monitoring the strategic management process, comparing its performance to specified standards, and then taking action where needed to to ensure that the planned events outlined in the stratgic formulation process actually occur.

Strategy control Strategy control Presentation Transcript

  • Presented By:- Pankaj Kumar Rai Business School (Meadows) Strategic Control
  • What Is Strategic Control ?
    • Strategic control
      • The selection of an organizational strategy and matching structure for the organization.
      • Creation of control systems to monitor and evaluate strategic performance of the organization.
    • The importance of strategic control
      • Achieving operational efficiency
      • Maintaining focus on quality
      • Fostering innovation
      • Insuring responsiveness to customers
  • Strategic control
    • Typically consists of three steps
    • Monitoring performance
    • Comparing performance to standards
    • Taking corrective action where needed
  • Traditional V/S Contemporary
    • Traditional control system
      • Based largely on the feedback approach
      • Little or no action taken to revise strategies, goals and objectives until the end of the time period
    • Contemporary control system
      • Continually monitoring the environments (internal and external)
      • Identifying trends and events that signal the need to revise strategies, goals and objectives
  • Traditional Approach to Strategic Control
    • Traditional approach is sequential
      • Strategies are formulated and top management sets goals
      • Strategies are implemented
      • Performance is measured against the predetermined goal set
      • Control is based on a feedback loop from performance measurement to strategy formulation
  • Traditional Approach to Strategic Control
    • Process has time lags, often tied to the annual planning cycle
    • This “single-loop” learning control system simply compares actual performance to a predetermined goal
    • Most appropriate when
      • Environment is stable and relatively simple
      • Goals and objectives can be measured with certainty
      • Little need for complex measures of performance
  • Contemporary Approach to Strategic Control
    • Relationships between strategy formulation, implementation and control are highly interactive
    • Two different types of control
      • Informational control
      • Behavioral control
    Informational control Behavioral control
  • Contemporary Approach to Strategic Control
    • Informational control
      • Concerned with whether or not the organization is “doing the right things”
    • Behavioral control
      • Concerned with whether or not the organization is “doing things right” in the implementation of its strategy
    • Both types of control are necessary conditions for success
  • Strategic Control  Should motivate people toward desired organizational behavior rather than promote dysfunctional behavior  What is Measured? Meeting Budget Production Efficiency Inputs Quantitative Performance(Mostly Financial) Customer Satisfaction New Product Development Rates Outcomes Quantitative & Qualitative Performance 1990’s thru 21 st Century Traditional
  • Who is evaluated?  Individuals Functions Responsibility Centers Individuals Teams (Groups) Cross-Functional People Traditional 1990’s thru 21 st Century
  • Basis of Rewards control Systems  Efficiency Profits ROI Quality Innovation Creativity Overall Company Performance Traditional 1990’s thru 21 st Century
  • Focus of Contemporary Control Systems  Internal Macro Environment Industry Environment Internal Traditional 1990’s thru 21 st Century
  • Strategic Control Systems
    • Steps in designing an effective control system
    • Thank you
    • Have a Nice Day