The document outlines essential concepts of strategic management evaluation and control, including strategic control definitions, processes, and various techniques such as premise control, implementation control, and strategic surveillance. It emphasizes the importance of establishing effective control systems tailored to an organization's needs, with guidelines for performance measurement, corrective action, and flexibility. Additionally, it discusses operational control systems, budgeting types, key success factors, and benchmarking as vital components for successful strategic management.

1. Strategic Management
Evaluation and Control
Prepared By
Prof. Jitendra Patel
Assistant Professor
Prestige Institute of Management
and Research. Indore.

2. Module Description
1. Strategic Control Definition
2.Strategic Control Process
3.Different Controlling Techniques –
3.1Premise Control
3.2 Implementation Control,
3.3 Special Alert Control
3.4Strategic Surveillance
4. Operational Control-Budgeting,
5. Scheduling
6. KSF
7. Benchmarking.
8. Essentials of Effective Control System
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Indore
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3. 3
What is Strategic Control?
Tracks a strategy as it is implemented, detects
problems or changes in its underlying
premises, and makes necessary adjustments.

4. Strategic Control Process
• Although control systems must be tailored to
specific situations, such systems generally
follow the same basic process.
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Indore
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5. Steps in Strategic Control/Strategic
Control Process
1. Determine what to control. What are the objectives the
organization hopes to accomplish?
2. Set control standards. What are the targets and
tolerances?
3. Measure performance. What are the actual standards?
4. Compare the performance the performance to the
standards. How well does the actual match the plan?
5. Determine the reasons for the deviations. Are the
deviations due to internal shortcomings or due to external
changes beyond the control of the organization?
6. Take corrective action. Are corrections needed in internal
activities to correct organizational shortcomings, or are
changes needed in objectives due to external events?
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Indore
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6. Types Of Controlling Techniques
Premise Control
Every strategy is based on certain planning premises or
predictions. Premise control is designed to check methodically
and constantly whether the premises on which a strategy is
grounded on are still valid. If you discover that an important
premise is no longer valid, the strategy may have to be
changed. The sooner you recognize and reject an invalid
premise, the better. This is because the strategy can be
adjusted to reflect the reality.
Special Alert Control
A special alert control is the rigorous and rapid reassessment of
an organization's strategy because of the occurrence of an
immediate, unforeseen 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.4/1/2020
Jitendra Patel, Assistant Professor, PIMR,
Indore
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7. Implementation Control
Implementing a strategy takes place as a series of steps, activities, investments
and acts that occur over a lengthy period. As a manager, you'll mobilize resources,
carry out special projects and employ or reassign staff. 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 or projects, and milestone
reviews. Strategic thrusts provide you with information that helps you determine
whether the overall strategy is shaping up as planned. With milestone reviews, you
monitor the progress of the strategy at various intervals or milestones.
Strategic Surveillance
Strategic surveillance is designed to observe a wide range of events within and outside
your organization that are likely to affect the track of your organization's 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 such as The Wall Street Journal, trade conferences,
conversations and observations.
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Jitendra Patel, Assistant Professor, PIMR,
Indore
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Types Of Controlling Techniques

8. 8
What are Operational Controls?
Systems that guide, monitor, & evaluate
progress in meeting short-term objectives,
providing post-action evaluation and control
over short periods.

9. 9
Establishing Effective Operational
Control Systems
1. Set standards of
performance
2. Measure actual
performance
3. Identify deviations from
standards set
4. Initiate corrective action
Steps
involved in
post action
control
systems

10. 10
Types of Budgets
1. Profit and loss budgets: Monitor sales and expense
categories on a monthly or more frequent basis
2. Capital budgets: Show timing of specific expenditures
for plant, equipment, machinery, inventories, and
other capital items
3. Cash flow budgets: Forecast receipt and disbursement
of cash during the budget period

11. 11
Characteristics of Strategic Controls
LowHighMedium
Types of Strategic Control
Strategic
Surveillance
Implementatio
n Control
Premise
ControlBasic Characteristics
Potential
threats and
opportunities
Low
Key strategic
thrusts and
milestones
High
Planning
premises and
projections
High
Objects of control
Degree of focusing
Data acquisition:
Formalization
LowMediumLowCentralization
YesSeldomYes
Use with:
Environmental
factors
YesSeldomYesIndustry factors
SeldomYesNo
Strategy-specific
factors
Seldom
High
Special Alert
Control
Occurrence of
recognizable but
unlikely events
High
High
Yes
Yes
Yes
SeldomYesNo
Company-specific
factors

12. Scheduling
• Scheduling is the process of arranging,
controlling and optimizing work and
workloads in a production process or
manufacturing process. Scheduling is used to
allocate plant and machinery resources, plan
human resources, plan production processes
and purchase materials.
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Jitendra Patel, Assistant Professor, PIMR,
Indore
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13. Scheduling
• Is the mechanism, part of the process manager, that
handles the removal of the running process from the
CPU and the selection of another process
• The selection of another process is based on a
particular strategy
• It is responsible for multiplexing processes on the
CPU; when is the time for the running process to be
removed from the CPU (in a ready or suspended
state), a different process is selected from the set of
process in the ready state
– Policy – determines when the process is removed and
what next process takes the control of the CPU
– Mechanism – how the process manager knows it is the
time to remove the current process and how a process is
allocated/de-allocated from the CPU

14. Selection Strategies
• Non preemptive strategies
– Allow any process to run to completion once it has been
allocated the control of the CPU
– A process that gets the control of the CPU, releases the
CPU whenever it ends or when it voluntarily give the
control of the CPU
• Preemptive strategies
– The highest priority process among all ready processes is
allocated the CPU
– All lower priority processes are made to yield to the
highest priority process whenever requests the CPU
• The scheduler is called every time a process enters the ready
queue as well as when an interval timer expires and a time
quantum has elapsed
– It allows for equitable resource sharing among processes
at the expense of overloading the system

15. KSF
• The combination of important facts that
is required in order to accomplish one or more
desirable business goals.
• For example, one of the key
success factors in promoting animal food prod
ucts might be to advertise them in a way
that appeals to those consumers who love
animals.
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Jitendra Patel, Assistant Professor, PIMR,
Indore
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16. PINPOINTING INDUSTRY
KEY SUCCESS FACTORS
• KEY SUCCESS FACTORS (KSFs) spell difference
between
– Profit & loss
– Competitive success or failure
• A KEY SUCCESS FACTOR can be
– Specific skill or talent
– Competitive capability
– Something a firm must do to satisfy customers

17. PINPOINTING INDUSTRY KEY SUCCESS
FACTORS
• Identifying KSFs is top priority as they are good
cornerstones of a firm’s strategy
–Winning COMPETITIVE ADVANTAGE often
hinges on being distinctively better than
rivals at one or more of the KSFs
• KSFs consist of the 3 - 5 really major
determinants of financial & competitive
success in industry

18. 18
Key Success Factors VS Key Performance Indicator
Key Success
Factor
1. Product
quality
2. Customer
service
Measurable Performance Indicator
a. Performance data versus specification
b. Percentage of product returns
c. Number of customer complaints
a. Delivery cycle in days
b. Percentage of orders shipped complete
c. Field service delays

19. 19
.
Key Success
Factor
3. Employee
morale
4. Competition
Measurable Performance Indicator
a. Trends in employee attitude survey
b. Absenteeism versus plan
c. Employee turnover trends
a. Number of firms competing directly
b. Number of new products introduced
c. Percentage of bids awarded versus standard
Key Success Factors VS Key Performance Indicator

20. KSF
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Jitendra Patel, Assistant Professor, PIMR,
Indore
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21. Benchmarking
• Benchmarking is the process of determining who
is the very best, who sets the standard, and what
that standard is.
• Bench marking is a comparative method where a
firm finds the best practices in an area and then
attempts to bring its own performance in that
area in line with the best practice. In order to
excel, a firm shall have to exceed the
benchmarks. In this manner, benchmarking offers
firms a tangible method to evaluate performance.
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Jitendra Patel, Assistant Professor, PIMR,
Indore
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22. Essentials of Effective Control System
• Suitable: The control system should be appropriate to the nature and needs of the activity. A large
firm calls for controls different from those needed for a small firm.
• In other words, control should be tailored to fit the needs of the organisation. The flow of
information concerning current performance should correspond with the organizational structure
employed. If a superior is to be able to control overall operations, he must find a pattern that will
provide control for individual parts. Budgets, quotas and other techniques may be useful in
controlling separate departments.
• Timely and Forward Looking: The control system should be such as to enable the subordinates to
inform their superiors expeditiously about the threatened deviations and failures. The feedback
system should be as short and quick as possible. If the control reports are not directed at future,
they are of no use as they will not be able to suggest the types of measures to be taken to rectify
the past deviations. A proper system of control should enable the manager concerned to think of
and plan for future also.
• Objective and Comprehensive: The control system should be both, objective and understandable.
Objective controls specify the expected results in clear and definite terms and leave little room for
argument by the employees. This is necessary both for the smooth working and the effectiveness of
the system.
• Flexible: The control system should be flexible so that it can be adjusted to suit the needs of any
change in the environment. A sound control system will remain workable even when the plans
change or fail outright. It must be responsive to changing conditions. It should be adaptable to new
developments including the failure of the control system itself. Plans may call for an automatic
system to be backed up by a human system that would operate in an emergency.
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Jitendra Patel, Assistant Professor, PIMR,
Indore
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23. • Economical: Economy is another requirement of every control. The benefit derived from a control system should
be more than the cost involved in implementing it. A small company cannot afford the elaborate control system
used by a large company. A control system is justifiable if the savings anticipated from it exceed the expected costs
in its working.
• Acceptable to Organization Members: The system should be acceptable to organisation members. When
standards are set unilaterally by upper level managers, there is a danger that employees will regard those
standards as unreasonable or unrealistic.
• Motivate People to High Performance: A control system is most effective when it motivates people to high
performance. Since most people respond to a challenge, successfully meeting to tough standard may well provide
a greater sense of accomplishment than meeting an easy standard. However, if a target is so tough that it seems
impossible to meet, it will be more likely to discourage than to motivate effort.
• Corrective Action: Merely pointing of deviations is not sufficient in a good control system. It must lead to
corrective action to be taken to check deviations from standard through appropriate planning, organizing and
directing. In the words of Koontz and O'Donnell, "An adequate control system should disclose where failures
occurring, who is responsible for them and what should be done about them." A control system will be of little use
unless it can generate the solution to the problem responsible for deviation from standards.
• Reflection of Organization Pattern: Organization is not merely a structure of duties and function, it is also an
important vehicle of control. In enforcing control the efficiency and the effectiveness of the organisation must be
clearly brought out.
• Human Factor: A good system of control should find the persons accountable for results, whenever large
deviations take place. They must be guided and directed if necessary.
• Direct Control: Any control system should be designed to maintain direct contact between the controller and
controlled. Even when there are a number of control systems provided by staff specialists, the foreman at the first
level is still important because he has direct knowledge of performance.
• Focus on Strategic Points: A good system of control not only points out the deviations or exceptions but also
pinpoints them where they are important or strategic to his operations.
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Indore
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24. References
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Management Competitiveness and Globalization: Concepts and
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25. References
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