DESIGNING STRATEGIC
CONTROL SYSTEM
Dr. Neha Gupta
CONCEPT OF CONTROL IN
STRATEGIC MANAGEMENT
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.
The purpose of control is to measure outcomes or outputs to see whether they pass or fail
according to the mission, objectives, and strategy.
Control is a valuable component of the planning process. It ensures that the organization
accomplishes its mission and objectives.
Ensures relevancy of the strategy
IMPORTANCE OF
EVALUATION AND CONTROL
Guides for the implementation of strategy
Provide early signals of the obstacles in the process of strategy
implementation
Provide the future direction to the strategy
EVALUATION AND CONTROL
PROCESS
Determine what to measure
Establish predetermined standard
Measure performance
Does performance match standard ?
NO
Take Corrective action
Yes
Stop
TYPES OF STRATEGIC
CONTROL
Premise Control: Every strategy is based on certain planning
premises—assumptions or predictions. Premise control is designed to
check systematically and continuously whether the premises on which
the strategy is based are still valid.
Premises or assumptions are:
Organizational factors: resource availability both financial and
managerial
Industrial factors: industry structure, competitive position and growth
Environmental factors: market condition, regulations, …
Implementation Control:
Regular monitoring the strategic implementation and find out the any
solve them. Implementation control is designed to assess whether the
be changed in light of results. Focused on actual process of strategy
3. Strategic Surveillance: Strategic surveillance is designed to monitor
a broad range of events inside and outside the firm that are likely to
strategy. The basic idea behind strategic surveillance is that
information may be uncovered by a general monitoring of multiple
4. Special Alert Control: A special alert control is the thorough, and
often rapid, reconsideration of the firm's strategy because of a
works with contingency plan.
BENEFITS OF STRATEGIC
EVALUATION
Provides direction
Continuous activity
Top management activity
Cost effectiveness
Focus on key performance
Future oriented
EVALUATION TECHNIQUE FOR
STRATEGIC CONTROL
Responsibility centres
Underlying success factors
Generic strategies
EVALUATION TECHNIQUE FOR
OPERATIONAL CONTROL
Internal analysis- value chain, sw, qualitative and quantitavie.
Comparative analysis – history, industry norm,benchmarking
Comprehensive analysis – balance score card
SPECIAL PURPOSE TECHNIQUES
MBO
Auditing
Ngo evaluation

Strategic evaluation and control.pptx

  • 1.
  • 2.
    CONCEPT OF CONTROLIN STRATEGIC MANAGEMENT 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. The purpose of control is to measure outcomes or outputs to see whether they pass or fail according to the mission, objectives, and strategy. Control is a valuable component of the planning process. It ensures that the organization accomplishes its mission and objectives. Ensures relevancy of the strategy
  • 3.
    IMPORTANCE OF EVALUATION ANDCONTROL Guides for the implementation of strategy Provide early signals of the obstacles in the process of strategy implementation Provide the future direction to the strategy
  • 4.
    EVALUATION AND CONTROL PROCESS Determinewhat to measure Establish predetermined standard Measure performance Does performance match standard ? NO Take Corrective action Yes Stop
  • 5.
    TYPES OF STRATEGIC CONTROL PremiseControl: Every strategy is based on certain planning premises—assumptions or predictions. Premise control is designed to check systematically and continuously whether the premises on which the strategy is based are still valid. Premises or assumptions are: Organizational factors: resource availability both financial and managerial Industrial factors: industry structure, competitive position and growth Environmental factors: market condition, regulations, …
  • 6.
    Implementation Control: Regular monitoringthe strategic implementation and find out the any solve them. Implementation control is designed to assess whether the be changed in light of results. Focused on actual process of strategy
  • 7.
    3. Strategic Surveillance:Strategic surveillance is designed to monitor a broad range of events inside and outside the firm that are likely to strategy. The basic idea behind strategic surveillance is that information may be uncovered by a general monitoring of multiple 4. Special Alert Control: A special alert control is the thorough, and often rapid, reconsideration of the firm's strategy because of a works with contingency plan.
  • 8.
    BENEFITS OF STRATEGIC EVALUATION Providesdirection Continuous activity Top management activity Cost effectiveness Focus on key performance Future oriented
  • 9.
    EVALUATION TECHNIQUE FOR STRATEGICCONTROL Responsibility centres Underlying success factors Generic strategies
  • 10.
    EVALUATION TECHNIQUE FOR OPERATIONALCONTROL Internal analysis- value chain, sw, qualitative and quantitavie. Comparative analysis – history, industry norm,benchmarking Comprehensive analysis – balance score card
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