25

• The Four Steps of Control Process


  • Establishing standards and methods for measuring performance
  • Measuring performance
  • Determining whether performance matches the standards
  • Taking corrective action
• Strategic Control


  Focuses on whether the strategy is being implemented as planned and if the results produced are those intended
• Strategic Control


  • Critical evaluation of plans, activities, and results, providing information for future action
• Types of Strategic Control

  • Premise Control
  • Implementation Control
  • Strategic Surveillance
  • Special Alert Control
• Premise Control


  Checking systematically and continuously whether the premises set during planning and implementation processes are still valid, involving the checking of environmental conditions
• Premise Control


  • Designed to check if planning premises/assumptions are still valid and likely to change, selecting those with major impact on the company and its strategy
• Implementation Control


  Assessing whether the overall strategy should be changed based on unfolding events and results associated with incremental steps and actions
• Implementation Control


  • Provides feedforward information, assessing if the overall strategy should be changed based on unfolding events and results
• Strategic Surveillance


  Monitoring a broad range of events inside and outside the company that may threaten the firm's strategy, encouraging general monitoring of multiple information sources
• Strategic Surveillance


  • Designed to uncover important yet unanticipated information by monitoring a broad range of events inside and outside the company
• Special Alert Control


  Thoroughly reconsidering the firm's basic strategy based on sudden, unexpected events like natural disasters, chemical spills, etc., conducted throughout the entire strategic management process
• Special Alert Control

  • Need to reconsider the firm's basic strategy based on sudden, unexpected events, conducted throughout the entire strategic management process
• Operational Control


  Involves control over intermediate-term operations and processes, ensuring activities are consistent with established plans, typically managed by mid-level management for one to two years
• Operational Control


  • Focuses on internal sources of information and affects smaller units of aspects of the organization, such as suppliers and internal operations
• Operational controls

  1. Used for intermediate-term decisions, typically over one to two years

  2. Managers enforce corrective actions when performance does not meet standards, which may include training, discipline, motivation, or termination
• Operational Control


  Focuses more on internal sources of information and affects smaller units of aspects of the organization, such as production levels or the choice of equipment
• Errors in operational control

  • Failing to complete projects on time
  • Sales revenue falling if salespeople are not trained on time
• Tactical Control

  1. Specific actions aligning with company strategy

  2. A method that meets a specific objective of an overall plan

  3. Emphasizes the current operations of an organization

  4. Managers determine what various parts of the organization must do for the organization to be successful in the near future (one year or less)
• Strategic Control, Operations, Tactics

  Strategic Control comes first, followed by Operations, and then Tactics
• Strategy Evaluation and Control


  1. Determining the effectiveness of a given strategy in achieving the organizational objectives and taking corrective action wherever required

  2. Monitoring, supervision, and follow-up

  3. Reviewing internal and external factors that are the bases for current strategies

  4. Measuring performance and taking corrective actions
• Steps in the Control Process

  1. Establish standards and methods for measuring performance

  2. Measure performance

  3. If performance matches the standards, do nothing

  4. If performance does not match the standards, take corrective action and re-evaluate standards