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PRESENTED BY :- SHASHI PRATAP SINGH
B.A- ECONOMICS (HONORS)
STRATEGIC CONTROL
WHAT IS STRATEGIC CONTROL?
Strategic control is a term used to describe the process used by organizations to control the
formation and execution of strategic plans.
Strategic control is also focused on the achievement of future goals, rather than the evaluation
of past performance.
Strategic control is concerned with tracking a strategy as it is being implemented,
detecting problems or changes in its underlying premises, and making necessary
adjustments.
Strategic control is concerned with guiding action on behalf of the strategy as that
action is taking place and when the end result is still several years off.
Basic question- “Are we moving in the right direction?”
Aim- Proactive, continuous questioning of the basic direction of strategy.
Main concern- Steering the organization’s future direction.
Focus- External Environment
Time Horizon- Long-term
Exercise of Control- Exclusively by top management, may be through lower-level support.
Main techniques- Environmental scanning, information gathering, questioning and reviews.
STRATEGIC CONTROL PROCESS
Determine
what to
control
Set control
standards
Measure
performance
Compare the
performance
with the
standards
set
Determine
the reasons
for the
deviations
Take
corrective
action
TYPES OF STRATEGIC CONTROL
Premise Control
Special Alert
Control
Implementation
Control
Strategic
Surveillance
PREMISE CONTROL
Every strategy is based on certain planning premises or predictions.
Premise control is designed to check methodically and continuously whether the
premises on which a strategy is grounded on are still valid.
If a vital premise is no longer valid, the strategy may have to be changed.
The sooner you recognize and reject an invalid premise, the better are the
chances that an acceptable shift in the strategy can be adjusted to reflect the
reality.
IMPLEMENTATION CONTROL
Implementation control is designed to assess whether the overall strategy should be
changed in light of the results associated with the incremental actions that
implement the overall strategy.
Implementation control is the type of strategic control that must be carried out as
events unfold.
There are two types of implementation controls.
Strategic thrusts- It provide you with information that helps you determine
whether the overall strategy is shaping up as planned.
Milestone reviews- It monitor the progress of the strategy at various intervals or
milestones.
STRATEGIC SURVEILLANCE
Strategic surveillance is designed to monitor a broad range of events inside and
outside the firm that are likely to affect the course of its strategy.
It's based on the idea that you can uncover important yet unanticipated
information by monitoring multiple information sources. Such sources include
trade magazines, journals, trade conferences, conversations and observations
etc.
Strategic surveillance provides an ongoing broad-based vigilance in all daily
operations that may uncover information relevant to the firm‘s strategy.
SPECIAL ALERT CONTROL
A special alert control is the thorough, and often rapid, reconsiderations of the
firm's strategy because of the occurrence of sudden, immediate or unexpected
event
An example of such event is the acquisition of your competitor by an outsider
Such an event will trigger an immediate and intense reassessment of the firm's
strategy. Form crisis teams to handle your company's initial response to the
unforeseen events
TECHNIQUES OF STRATEGIC CONTROL
 Strategic momentum control
1. Responsibility control centers
2. Underlying success factors
3. Generic strategies
 Strategic leap control
1. Strategic issue management
2. Strategic field analysis
3. System’s modelling
4. Scenarios
STRATEGIC MOMENTUM CONTROL
 It aimed at assuring whether the assumption on which strategies were formulated are still
valid and,
 what needs to be done in order to allow the organization to maintain its existing strategic
momentum.
 For achieving these aims there are three techniques which could be used-
1. Responsibility control centers
2. The underlying success factors
3. Generic strategies
Responsibility control centers
 It form the core of management control systems
 They are of 4 types of centers:-
1. Revenue
2. Expense
3. Profit
4. Investment
Underlying success factors
• It enable organizations to focus on the critical success factors i.e., to examine the factors that
contribute to the success of strategies.
• By managing on the basis of the critical success factors, the strategists can continually evaluate
the strategies to assess whether or not these are holding the organization to achieve its
objectives.
Generic strategies
• It is based on the assumption that the strategies adopted by firms similar to another firm are
comparable.
• A firm can then study why and how other firms are implementing particular strategies and
assess whether or not its own strategy is following a similar path.
STRATEGIC LEAP CONTROL
 It can assist an organization by helping to define the new strategic requirements
and to cope with emerging environment realities.
 There are 4 techniques of evaluation used for exercising strategic leap control:-
1. Strategic issue management
2. Strategic field analysis
3. System’s modelling
4. Scenarios
 Strategic issue management
• It is aimed at identifying one or more strategic issues and assessing their impact on the
organization.
• By managing on the basis of strategic issues, the strategists can avoid being overtaken by
surprising environmental changes and design contingency plans to shift strategies whenever
required.
 Strategic field analysis
• It’s a way of examining the nature and extent of synergies that exists or are lacking between the
components of an organization.
 System’s modelling
• It is based on computer-based models that stimulate the essential features of the organization
and its environment.
• Through system’s modelling, organizations may exercise pre-action control by assessing the
impact of the environment on the organization through the adoption of a particular strategy.
 Scenarios
• These are perceptions about the likely environment a firm could face in the future.
ThankYOU


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Stategic management

  • 1. PRESENTED BY :- SHASHI PRATAP SINGH B.A- ECONOMICS (HONORS) STRATEGIC CONTROL
  • 2. WHAT IS STRATEGIC CONTROL? Strategic control is a term used to describe the process used by organizations to control the formation and execution of strategic plans. Strategic control is also focused on the achievement of future goals, rather than the evaluation of past performance. Strategic control is concerned with tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises, and making necessary adjustments. Strategic control is concerned with guiding action on behalf of the strategy as that action is taking place and when the end result is still several years off.
  • 3. Basic question- “Are we moving in the right direction?” Aim- Proactive, continuous questioning of the basic direction of strategy. Main concern- Steering the organization’s future direction. Focus- External Environment Time Horizon- Long-term Exercise of Control- Exclusively by top management, may be through lower-level support. Main techniques- Environmental scanning, information gathering, questioning and reviews.
  • 4. STRATEGIC CONTROL PROCESS Determine what to control Set control standards Measure performance Compare the performance with the standards set Determine the reasons for the deviations Take corrective action
  • 5. TYPES OF STRATEGIC CONTROL Premise Control Special Alert Control Implementation Control Strategic Surveillance
  • 6. PREMISE CONTROL Every strategy is based on certain planning premises or predictions. Premise control is designed to check methodically and continuously whether the premises on which a strategy is grounded on are still valid. If a vital premise is no longer valid, the strategy may have to be changed. The sooner you recognize and reject an invalid premise, the better are the chances that an acceptable shift in the strategy can be adjusted to reflect the reality.
  • 7. IMPLEMENTATION CONTROL Implementation control is designed to assess whether the overall strategy should be changed in light of the results associated with the incremental actions that implement the overall strategy. Implementation control is the type of strategic control that must be carried out as events unfold. There are two types of implementation controls. Strategic thrusts- It provide you with information that helps you determine whether the overall strategy is shaping up as planned. Milestone reviews- It monitor the progress of the strategy at various intervals or milestones.
  • 8. STRATEGIC SURVEILLANCE Strategic surveillance is designed to monitor a broad range of events inside and outside the firm that are likely to affect the course of its strategy. It's based on the idea that you can uncover important yet unanticipated information by monitoring multiple information sources. Such sources include trade magazines, journals, trade conferences, conversations and observations etc. Strategic surveillance provides an ongoing broad-based vigilance in all daily operations that may uncover information relevant to the firm‘s strategy.
  • 9. SPECIAL ALERT CONTROL A special alert control is the thorough, and often rapid, reconsiderations of the firm's strategy because of the occurrence of sudden, immediate or unexpected event An example of such event is the acquisition of your competitor by an outsider Such an event will trigger an immediate and intense reassessment of the firm's strategy. Form crisis teams to handle your company's initial response to the unforeseen events
  • 10. TECHNIQUES OF STRATEGIC CONTROL  Strategic momentum control 1. Responsibility control centers 2. Underlying success factors 3. Generic strategies  Strategic leap control 1. Strategic issue management 2. Strategic field analysis 3. System’s modelling 4. Scenarios
  • 11. STRATEGIC MOMENTUM CONTROL  It aimed at assuring whether the assumption on which strategies were formulated are still valid and,  what needs to be done in order to allow the organization to maintain its existing strategic momentum.  For achieving these aims there are three techniques which could be used- 1. Responsibility control centers 2. The underlying success factors 3. Generic strategies
  • 12. Responsibility control centers  It form the core of management control systems  They are of 4 types of centers:- 1. Revenue 2. Expense 3. Profit 4. Investment Underlying success factors • It enable organizations to focus on the critical success factors i.e., to examine the factors that contribute to the success of strategies. • By managing on the basis of the critical success factors, the strategists can continually evaluate the strategies to assess whether or not these are holding the organization to achieve its objectives. Generic strategies • It is based on the assumption that the strategies adopted by firms similar to another firm are comparable. • A firm can then study why and how other firms are implementing particular strategies and assess whether or not its own strategy is following a similar path.
  • 13. STRATEGIC LEAP CONTROL  It can assist an organization by helping to define the new strategic requirements and to cope with emerging environment realities.  There are 4 techniques of evaluation used for exercising strategic leap control:- 1. Strategic issue management 2. Strategic field analysis 3. System’s modelling 4. Scenarios
  • 14.  Strategic issue management • It is aimed at identifying one or more strategic issues and assessing their impact on the organization. • By managing on the basis of strategic issues, the strategists can avoid being overtaken by surprising environmental changes and design contingency plans to shift strategies whenever required.  Strategic field analysis • It’s a way of examining the nature and extent of synergies that exists or are lacking between the components of an organization.  System’s modelling • It is based on computer-based models that stimulate the essential features of the organization and its environment. • Through system’s modelling, organizations may exercise pre-action control by assessing the impact of the environment on the organization through the adoption of a particular strategy.  Scenarios • These are perceptions about the likely environment a firm could face in the future.