short presentation on strategic control

1. STRATEGIC
CONTROL
Presented by- Roshan

2. Concept of Strategic control
 Strategic is formulated on the basis of
several assumption of:
 Future environmental factors
 Organizational factors
 Considerable gap betn the time strategy is
formulated and implementation
 During implementation, assumptions may not
valid or less valid

3. Contd..
 takes into account the changing assumptions
that determine a strategy
 early warning systems and differ from post
action controls(i.e operational control) which
evaluate only after the implementation has been
completed.
 a term used to describe the process used by
organizations to control the formation and
execution of strategic plans
 Top level management n long term oriented

4. Determin
e what to
measure
Measur
e
perform
ance
Does
performanc
e match
standards
Take
corrective
actions
Establish
predetemined
standard
stop
no
yes
1 2
3
4
5
Process of Strategic
Control

5. Types of strategic control
 Premise control
 Implementation control
 Strategic surveillance
 Special alert control

6. Premise Control
 identify the key assumptions, and keep track of
any change in them so as to assess their
impact on strategy and its implementation.
 the purpose of continually testing the
assumptions to find out whether they are still
valid or not
 helps in the strategists to take corrective action
at right time

7. Implementation control
 Aimed at evaluating whether the
plans,programs and projects are actually
guiding the orgn towards its predetermind
objectives or not

8. Strategic surveillance
 aimed at designed to monitor a board range of
events inside and outside the company that
are likely to threaten the course of firm’s
strategy
 Sources of strategic surveillance are trade
magazines , trade conferences, conversations
, intended and unintended observations etc.

9. Special alert control
 based on trigger mechanism for rapid
response and immediate reassessment of
strategy in the light of sudden and unexpected
events
 Many firms have developed crisis teams to
handle intial response and coordination when
faced with unforeseen occurences

10. (c) Dr. Azhar Kazmi 2008
10
How do strategic control and operational
control differ?
---------------------------------------------------------------------------------------------------------
Attribute Strategic control Operational control
---------------------------------------------------------------------------------------------------------
1. Basic question "Are we moving in the right direction"? "How are we performing?
2. Aim Proactive, continuous questioning Allocation and use of the basic direction of strategy
organisational resources
3. Main concern ‘Steering’ the organisation’s future direction Action control
4. Focus External environment internal organisation
5. Time horizon Long-term Short-term
6. Exercise of control Exclusively by top management, Mainly by executive or middle
may be through lower-level support level management on the
direction of the top management
7. Main techniques Environmental scanning, information Budgets, schedules and MBO
gathering, questioning and review
-------------------------------------------------------------------------------------------------------------
Based on J. A. Pearce III and R. B. Robinson, Jr.: Strategic Management: Strategy Formulation and Implementation
(3rd edn.), (Homewood, Ill.: Richard D. Irwin, 1988), pp.404-419.