Strategic Evaluation & Control

Presented
by:
Rajesh
Khatkar
Institute of Management Studies, K.U.K
Parveen
 Strategic Evaluation
Strategic Evaluation put the organization on right
track, utilizing resources efficiently and effectively.

According to F.R David, strategy evaluation

includes three basic activities;

1. Examining the underlying bases of a firm’s strategy,

2. Comparing expected results with the actual results,
and
3. Taking corrective actions to ensure that the
performance conforms to plans.
 Importance

1. Co-ordinate the tasks of individual

managers, S.B.U or divisions
2. Need for feedback
3. Appraisal & Reward
4. Check on validity of strategic choice
5. Successful result of the strategic Mgt.
 Barriers

1. Limits of
Control
2. Difficulties in
measurement
3. Motivational
problems
 Strategic control

According to Pears and Robinson;

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.
It provides feedback that is critical for determining whether
all steps of the strategic management process are
appropriate, are compatible, and are functioning properly.
 Types of Control
1. Premise control
2. Implementation control
3. Strategic surveillance
4. Strategic alert control
 Different from Operational Control
Attributes Strategic Control Operational Control
Basic question Are we moving in right direction How are we performing
Aim Proactive, continuous questioning Allocation of
of the basic direction of strategy organizational resources
Main concern Steering the organization’s future Action control
direction
Focus External environment Internal environment
Time horizon Long-term Short-term
Exercise of Exclusively by Top Mgt., may be Mainly by executive or
control through lower-level support Middle-level Mgt. or the
direction of Top Mgt.
Main techniques Environmental scanning, Budgets, Schedules, and
Information gathering, M.B.O
Questioning & review

Pearce and Robinson

 Process
1. Setting standards of performance
2. Measurement of performance
3. Analyzing variances
4. Taking corrective actions
 Setting
Strategy/ standards Actual Measuremen
Plan/ of performanc t of
Objectives performanc e performance
e

Check
Standards
Check Analyzing
Performance variance
Reformulate

Feedback
 Evaluation Techniques
Under Strategic Control
1. Strategic momentum control
a) Responsibility control
centers
b) Underlying success factors
c) Generic strategies approach
2. Strategic leap control
a) Strategic issue mgt.
b) Strategic field analysis
c) Systems modeling
d) scenarios
Under Operational Control
1. Internal analysis
a) Value chain analysis
b) Quantitative analysis
c) Qualitative analysis
2. Comparative analysis
a) Historical analysis
b) Industry norms
3. Comprehensive analysis
a) M.B.O
b) Key factor rating
 M.I.S for evaluation

The measurement of performance is done on the

basis of reports generated through the information
system.
In fact the purpose of M.I.S is to enable managers to
keep track of performance through control reports.
With the increasing sophistication of the information
systems and the use of IT, it is possible to devise
elaborate methods for evaluation.
 Techniques for M.I.S

1. Data Warehousing
A data warehouse maintains its functions in three
layers: staging, integration and access.
2. Data mining
Process of extracting patterns from data.
Currently used in a wide range of profiling practices,
such as marketing, surveillance, fraud detection, and
scientific discovery.