Changing controls Changing task relationship Implementing strategic change Changing the strategy [successful turnaround] TECHNIQUES OF STRATEGIC EVALUATION AND CONTROL The importance of strategic evaluation lies in its ability to coordinate the tasks performed by individual managers, and also groups, division or SBUs, through the control of performance. In the absence of coordinating and controlling mechanisms, individual managers may pursue goals, which are inconsistent with the overall objectives of the department, division, SBU or the whole organization. We will now discuss evaluation and control in detailed way. Strategic evaluation and control process The process of evaluation basically deals with four steps: 1. Setting standards of performance-Standards refer to performance expectations. 2. Measurement of performance-Measurement of actual performance or results requires appraisal based on standards. 3. Analyzing variances- The comparison between standards and results gives variances. 4. Taking corrective action-The identifications of undesirable variances prompt managers to think about ways of corrective them. TECHNIQUES The different types of strategic controls are discussed in brief here. a) Premise control A company may base its strategy on important assumptions related to environmental factors (e.g., government policies), industrial factors (e.g. nature of competition), and organizational factors (e.g. breakthrough in R&D). Premise control continually verifies whether such assumptions are right or wrong. If they are not valid corrective action is initiated and strategy is made right. The responsibility for premise control can be assigned to the corporate 120
planning staff who can identify for assumptions and keep a regular check on their validity. b) Implementation control Implementation control can be done using milestone review. This is similar to the identification-albeit on a smaller scale-of events and activities in PERT/CPM networks. After the identification of milestones, a comprehensive review of implementation is made to reassess its continued relevance to the achievement of objectives. c) Strategic Surveillance This is aimed at a more generalized and overarching control. Strategic surveillance can be done through a broadbased, general monitoring on the basis of selected information sources to uncover events that are likely to affect the strategy of an organization. d) Special Alert Control This is based on a trigger mechanism for rapid response and immediate reassessment of strategy in the light of sudden and unexpected events. Special alert control can be exercised through the formulation of contingency strategies and assigning the responsibility of handling unforeseen events to crisis management teams. Examples of such events can be the sudden fall of a government at the central or state level, instant change in a competitor’s posture, an unfortunate industrial disaster, or a natural catastrophe.
- Fall '16
- Mr das