Strategic control - strategic implementation - Manu Melwin Joy

Strategic controlStrategic Implementation

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – [email protected]

Strategic control• 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. The most important purpose of strategic control is to help top achieve organizational goals through monitoring and evaluating the strategic management process.

Types of strategic control

Premise control • Premise control is

designed to check systematically and continuously whether the premises on which the strategy is based are still valid. If an important premise is no longer valid, the strategy may have to be changed.

Premise control • It involves the checking of

environmental conditions. Premises are primarily concerned with two types of factors: – Environmental factors (for

example, inflation, technology, interest rates, regulation, and demographic/social changes).

– Industry factors (for example, competitors, suppliers, substitutes, and barriers to entry).

Implementation control • Implementation control is

aimed at assessing whether the plans, progammes and policies are actually guiding the organization towards its predetermined objectives or not. If the resources that are committed to a project at any point of time would not benefit an organization as envisaged, corrective steps should be undertaken immediately.

Implementation control • The two basis types of

implementation control are: – Monitoring strategic thrusts -

to agree early in the planning process on which thrusts are critical factors in the success of the strategy or of that thrust.

– Milestone Reviews. Milestones are significant points in the development of a programme, such as points where large commitments of resources must be made.

Strategic surveillance• Strategic surveillance aims at a

more generalized overreaching control designed to monitor “ a broad range of events inside and outside the company that are likely to threaten the course of firm’s strategy”. It is done generally through a general kind of monitoring based on selected information sources to uncover events that are likely to affect the strategy of an organization.

Strategic surveillance• For example, the success

of Arvind Mill’s Ruf and Tuf brand encouraged rampant sale of spurious products under the same brand name forcing the company to constitute vigilance squads to crack down on the unscrupulous businessmen

Strategic alert control• A strategic alert control is the

thorough and often rapid consideration of the firm’s strategy because of a sudden unexpected event. Examples of such events can be the sudden fall of the government, a natural calamity etc. In the face of such unexpected events, the firm should respond immediately, and releases it strategies quickly.