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.