N AND CONTROL LEARNING OBJECTIVES 1. Understand the meaning of Strategic Control
2. Identify and enumerate the Steps in the
Strategic Control Process; and
3. Know the different Modes of Corrective Action
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STRATEGIC CONTROL - focuses on the evaluation of strategies implemented, if they have resulted on what was planned
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STRATEGIC CONTROL • Schreyogg and Steinman • critical evaluation of plans, activities and end results which form a basis for future action • strategic control process model
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STRATEGIC CONTROL PROCESS MODEL 1. Premise control
2. Implementation Control
3. Strategic Surveillance
4. Pearce and Robinson (2003) -
Special alert control Your Date Your Footer Here 5 1st STEP: PREMISE CONTROL
To check whether the premises set at
the beginning of the planning and implementation process are still in place.
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2nd STEP: IMPLEMENTATION CONTROL To monitor the overall strategy vis-à-vis the results associated with the steps in the implementation of the over all strategy. Your Date Your Footer Here 7 2nd STEP: IMPLEMENTATION CONTROL Continuous basis • 2 approaches 1. monitoring of strategic programs 2. review of significant highlights in the development of a particular program
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3rd STEP: STRATEGIC SURVEILLANCE
This focused on monitoring a broad
range of events, both external and internal that is likely to affect or pose a great impact on the firm's strategy.
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SPECIAL ALERT CONTROL • An additional step theorized by Pearce and Robinson.
• Fast yet thorough monitoring of
strategies on the grounds of sudden or unexpected events.
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Control: Six stages of feedback • Find out what to control. • Come up with control standards. • Measure performance. • Compare actual performance to standards. • Determine the reasons for the deviation. • Take necessary corrections.
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Modes of Corrective Action 1. Normal Mode
2. Crash Mode
3. Preplanned Crisis Mode
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CHARACTERISTICS OF A GOOD EVALUATION TOO costly TOO cheap TOO much information TOO little information
Consonance with firm’s objective
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STRATEGIC CONTROL SHOULD project a TRUE PICTURE of what is REALLY happening in the company subject to environmental conditions
SHOULD be action-oriented – work
HAND IN HAND Your Date Your Footer Here 14 Thank You