Professional Documents
Culture Documents
Shruti Das
03480003913
Roshan Jha
08780003913
Navita Aggarwal 09580003913
Kratika Agarwal 09880003913
INTRODUCTION
Continued..
Evaluation is vital to the organizations well-being
because:
It compares performance with desired results and
gives feedback for management to evaluate and take
corrective actions.
It alerts management to potential/actual problems
in a timely fashion.
STRATEGIC CONTROL
It takes into account the changing assumptions that
determine a strategy, continually evaluate the strategy
as it is being implemented, and take the necessary steps
to adjust the strategy to the new requirement.
It is early warning systems and differ from post action
controls which evaluate only after the implementation
has been completed.
Premise Control
Implementation control
Strategic surveillance
Special alert control
Premise Control
Premise control is necessary to identify the key
assumptions, and keep track of any change in them so as
to assess their impact on strategy and its
implementation.
Premise control serves the purpose of continually testing
the assumptions to find out whether they are still valid or
not. It helps in the strategists to take corrective action at
the right time.
Premise control responsibility can be assigned to
corporate planning staff.
Implementation control
The Implementation of a strategy results in a series of
plans, programmes, and projects.
Resources allocation plays important role.
Implementation control may leads into strategic
rethinking.
Implementation control can be implemented by
identifying and monitoring strategic requirement with
respect to market success. It also helps in determining
whether to go for diversification or not.
Strategic surveillance
It is generalized aimed at designed to monitor a board
range of events inside and outside the company that are
likely to threaten the course of firms strategy.
It can be done through a broad based, general
monitoring on the basis of selected information sources
to uncover that are likely to affect the strategy of an
organization.
Special control
It is based on trigger mechanism for rapid response and
immediate reassessment of strategy in the light of
sudden and unexpected events.
Crises and critical situations that occur unexpectedly
and threaten the course of a strategy.
Techniques for
strategic
control
Strategic
Momentum
Control
Responsibility
control centres
Generic
Strategies
Strategic
leap Control
The
underlying
success factors
Strategic issue
management
Strategic field
analysis
Systems
modelling
Scenarios
OPERATIONAL CONTROL
Process of Evaluation
It basically deals with four steps:
I. Setting standards of performance
II. Measurement of performance
III. Analysing variances
IV. Taking corrective action.
Strategy/Plan
/Objectives
Setting
standards of
performance
Actual
Performance
Management
of
performance
Analysing
Variance
Comparative
Analysis
Comprehens
ive
VRIO
framework
Value Chain
analysis
Quantitativ
e analysis
Qualitative
analysis
Historical
analysis
Industry
norm
Benchmark
ing
Key factor
rating
Business
intelligence
systems
The
balanced
scorecard
Internal analysis
Comparative analysis
Comprehensive analysis
1. Key factor rating- is a method that takes into account the key
factors in several areas and then sets out to evaluate
performance on the basis of these. This is quite a comprehensive
method as it takes a holistic view of the performance areas in an
organisation.
2. Balanced scorecard- method is based on the identification of
four key performance measures of customer perspective,
internal perspective, innovation and learning perspective and
the financial perspective.
Strategic control
Operational Control
1. Aim
Proactive, continuous
questioning of the basic
direction of strategy
Action control
3. Focus
External environment
Internal organisation
4. Time horizon
Long-term
Short-term
5. Exercise of
control
Exclusively by top
management, may be through
lower-level support
Mainly by executive or
middle-level
management on the
direction of the top
management
6. Main
techniques
Environmental scanning,
information gathering,
questioning and review
Budgets, schedules
and MBO
7. Basic
question
How are we
performing?