Strategy Evaluation and
Control
Strategy Evaluation and
Control
DEFINE STRATEGIC CONTROL ?
BARRIERS OF EFFECTIVE CONTROL
EVALUATION & CONTROL PROCESS
CONTROL CRITERIA
CONTROL TYPES
CONTROL TECHNIQUES.
What is Strategic Control
Control is
Monitoring and
evaluating
Something
to ensure desired
progress by
making timely
Strategic Control is
Monitoring
and
evaluating
Strategic Control is
Monitoring and
evaluating
Plans
activities &
Strategic Control is
Monitoring and evaluating
Plans activities &
results
for future actions,
Providing warning
signals by
Strategic Control is
Monitoring and evaluating
Plans activities &
results
for future actions,
Providing warning signals
by diagnosis of data
And triggering
Strategic Control is
Monitoring and evaluating
Plans activities &
results
for future actions,
Providing warning signals
by diagnosis of data
And triggering appropriate
intervention .What kind
Strategic Control is
Monitoring and evaluating
Plans activities & results
for future actions,
Providing warning signals
by diagnosis of data
And triggering appropriate
intervention .be they
either TACTICAL
ADJUSTMENT OR
Monitoring and evaluation
plans, activities and results
with a view towards future
actions, providing a warning
signal through diagnosis of
data and triggering
appropriate interventions, be
they either tactical
adjustments or strategic
Barriers in Strategic control
1. Limits of control
2. Difficulties in
measurement
3. Psychological barrier
4. Lack of direct link
between performance and
reward
5. Operational problem
Role of Strategic control
1. Measures progress in
achieving strategic
objectives
2. Feed back for future
actions
3. Links performance with
rewards.
STRATEGIC EVALUATION
PROCESS
FOUR INTERRELATED ACTIVITIES
1. ESTABLISH PERFORMANCE
TARGETS, STANDARDS, AND
TOLERANCE LIMITS FOR THE
OBJECTIVES, STRATEGY AND
IMPLEMENTATION PLANS
2. MEASURE ACTUAL POSITION
3. ANALYSE DEVIATION
4. EXECUTE MODIFICATIONS
EVALUATION & CONTROL
PROCESS
ACTUAL
PERFORMAN
CE
VARIANC
E
ANALYSIS
IMPROVE
PERFORMAN
CE
STANDARDS
RESET
REVISE
STRATEGI
ES
OBJECTIV
ES
PLANS
FEED BACK
CORRECTIVE
ACTIONS
CONTROL CRITERIA
CAUSAL
FACTORS
STRATEGY
FORMULATION
,
IMPLEMENTATI
ON
INTERVENI
NG
CRITERIA
Product
related
Customer
related,
Personnel
related
END RESULT
CRITERIA
Financial
performance
Social
Performance
Control Criteria
1. Causal Factors
Are independent variables
that affect the intervening
criteria which in turn
affect the end result
criteria.
Eg Strategy formulation and
implementation
2. Intervening Criteria
1. Product related
1. Product quality
2. Product price
3. New Product introduced
2. Customer related.
1. Customer service
2. Customer Satisfaction
3. Customer Loyalty.
3. Personnel related
1. Attracting and retaining talent
2. Personnel ability & skill 3/
3. End result Criteria
Caused by causal and intervening
criteria and are the terms in which
organizational success is
measured.
2 Groups
Financial Performance
Rate of growth Sales growth,
Asset growth, Market share
Profitability Profit sales
relationship, ROI
Four Types of Strategic Control
STRATEGIC SURVEILLANCE
PREMISE CONTROL
SPECIAL ALERT CONTROL
IMPLEMENTATION CONTROL
STRATEGY
FORMULATION
Time 1
Time 2
STRATEGY
IMPLEMENTATION
Time3
PREMISE CONTROL
Premise meaning
A basis, stated or assumed on
which reasoning proceeds.
A proposition or assumption based
on which strategy is formulated.
PREMISE CONTROL
Check systematically and
continuously whether or not the
premises set during the planning
and implementation stage are still
valid.
PREMISE CONTROL HOW TO
ESTABLISH
IDENTIFY KEY PREMISES
ASSIGN MONITORING
RESPONSIBILITY
PRE IDENTIFY ALL THE KEY AREAS
OR KEY ASPECT OF THE STRATEGY
THAT MAY HAVE SIGNIFICANT
IMPACT DUE TO CHANGE IN
IMPLEMENTATION CONTROL
SITUATION IS CHANGING DURING
IMPLEMENTATION
SHOULD STRATEGY BE CHANGED
IMPLEMENTATION CONTROL
DESIGNED TO ASSESS IF
STRATEGY SHOULD BE CHANGED
IN THE LIGHT OF UNFOLDING
EVENTS AND RESULTS
ASSOCIATED WITH INCREMENTAL
STEPS AND ACTIONS THAT
IMPLEMENT THE OVERALL
TYPES OF IMPLEMENTATION CONTROL
MONITORING STRATEGIC THRUST ARE
Several new strategic
projects are undertaken for
implementing broad
Strategies.
These projects or thrusts
provide information to
determine if overall strategy
is progress as planned.
MILESTONE REVIEW
FULL SCALE REVIEW OR
REASSESSMENT OF
STRATEGY AT CERTAIN
MILESTONES.
Milestones could be
critical events
Major resource allocations
passage to certain time.
STRATEGIC SURVEILLANCE
MONITORING BROAD RANGE
OF EVENTS INSIDE AND
OUTSIDE THE COMPANY
THAT ARE LIKELY OT
THREATEN THE COURSE OF
THE FIRMS STRATEGY.
GENERAL MONITORING OF
SPECIAL ALERT CONTROL
IS THE NEED TO
THOROUGHLY, AND OFTEN
RAPIDLY, RECONSIDER THE
BASIC STRATEGY BASED ON
SUDDEN UNEXPECTED
EVENT.
SPECIAL ALERT CONTROL
IS THE NEED TO
THOROUGHLY, AND OFTEN
RAPIDLY, RECONSIDER THE
BASIC STRATEGY BASED ON
SUDDEN UNEXPECTED
EVENT.
STRATEGIC CONTROL TECHNIQUES
CAN BE CLASSIFIED IN TWO
GROUPS BASED ON TYPE OF
ENVIRONMENT FACED
1. STRATEGIC MOMENTUM
CONTROL.- stable
environment.
2. STRATEGIC LEAP
CONTROL Turbulent
STRATEGIC MOMENTUM CONTROL
1. Responsibility Control
center
1. Revenue
2. Expense
3. Profit
4. Investment
2. Critical Success factor
Analysis
3. Generic Strategies
STRATEGIC LEAP CONTROL
1. STRATEGIC ISSUE
MANAGEMENT
2. STRATEGIC FIELD
ANALYSIS
3. SYSTEMS MODELING
4. SCENARIOS.
STRATEGIC LEAP CONTROL
1. STRATEGIC ISSUE
MANAGEMENT
1. Identify strategic issue
and determine its impact
, manages issues in
time.
2. STRATEGIC FIELD
STRATEGIC LEAP CONTROL
1. SYSTEMS MODELING
2. SCENARIOS.
Both are simulated
techniques of decision
making. Different strategic
models are developed for
different scenarios to help
organizations take
appropriate action on
FINANCIAL PERFORMANCE
CONTROL TECHNIQUES
ABC COSTING SYSTEM
BUDGETARY CONTROL
FINANCIAL RATIO ANALYSIS
RETURN ON INVESTMENT
SOCIAL PERFORMANCE CONTROL
TECHNIQUES
SOCIAL COST BENEFIT ANALYSIS
SOCIAL INDICATORS
SOCIAL GOAL SETTING.
