Presentation on strategic control.

By kapil pandey Roll no 28.

Questions involved in Assessing a Strategy’s Success

• 1. Are we moving in the proper direction?

• 2. Are our assumptions about major trends and changes correct?

• 3 .Should we adjust or abort this strategy? • 4. How are we performing?

• 5 .Are objectives and schedules being met?

• 6 .Are costs, revenues, and cash flows matching projections? Do we need to make operational changes?

Strategic control

Meaning:- • Strategic control is also focused on the achievement of future goals,

rather than the evaluation of past performance.

• 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.

Characteristics of strategic control

• it is a continuous process• it is a management process• it is embedded in each level of organizational hierarchy• it is forward looking• it is closely linked with planning• it is a tool for achieving organizational activities• it is an end process

Process of strategic control.

Establish standards and targets.

Create measuring and monitoring systems. Comparing actual performance against the established targets. Evaluate results and take action if necessary.

Types of strategic control

• 1 premise control• 2 Implantation control• 3 Strategic surveillance• 4 Special alert control

Types of strategic control

1 premise control:- 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 right time.

2 Implantation control :- Aimed at evaluating whether the plans, programs and projects are

actually guiding the organs towards its predetermined objectives or not.

3 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

4 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 initial response and coordination when faced with unforeseen occurences.

Operational Control

• Operational control systems are designed to ensure that day-to-day actions are consistent with established plans and objectives.

• Focuses on events in a recent period.• Derived from the requirements of the management control

systems. • Corrective actions is taken where performance does not meet

standards. • This action may involve training, motivation, leadership,

discipline, or termination.

Thank you