[7] In organisations undertaking a mix of diverse / unrelated activities (e.g. But to put the strategy into motion, you need strategic management. Marketing control is a process where company management or executives analyze and assess their marketing activities and programs. 4. Your surveillance could encompass industry publications, online or social mentions, industry trends, conference activities, etc. Strategic control definition states that the process tracks a strategy during its implementation period and detects changes or problems that may affect the outcome. Build a bi-focal approach thatll help you look at every situation from all angles. Strategic surveillance aims to monitor a wide range of events both outside and inside the organization. Since strategic management is continuous, it helps in recycling actions that are essential for achieving the objectives of an organization. Has the strategy been implemented as planned? Why was performance below standards? However, sometimes it is difficult to make the required comparisons (e.g., behavioral standards). WebStrategic control is the process used by organizations to control the formation and execution of strategic plans; it is a specialised form of management control, and differs from other forms of management control in respects of its need to handle uncertainty and ambiguity at various points in the control process. Measurement can then be addressed in monthly or quarterly review meetings. The most likely objectives expected out of the strategy and reserved for organizational objectives are determined. In other words. This involves a critical review of the essential points in strategic implementation. The primary objective of strategic control is to ensure that organization has an effective balance and alignment with its internal and external environment. These elements can be linked together in ClearPoint, so everyone knows how their work is contributing to the overall plan (and how well theyre performing). Set Clear Goals and Define Key Variables. Operational control monitors everyday functions to address any problem at the earliest. 14 June 2023 34 mins read Strategic Management What is Strategic Management Process? This special alert can be implemented by formulating contingency strategies and assigning different responsibilities for unforeseen events. Breaking it down into five simple principles should help you get it right. It leads the company to achieve its vision and mission and long term goals. They are futuristic or forward-looking in nature. Regardless of the type or levels of strategic control systems an organization needs, control may be depicted as a six-step feedback model: 1. It is not unusual for short-term objectives to be met at the expense of long-term objectives. [CDATA[ This could include updating an IT system or retraining particular employees, respectively. And external factors like customers, shareholders, competition, nature, etc. The strategies are objectives of the organization, and they are forward-looking. The event could be anything from a natural disaster or product recall to a competitor acquisition. The entire strategic planning, implementation, and control process takes significant effort and thought. Implementation control can also take place via operational control systems, like budgets, schedules, and key performance indicators. As a strategy is chosen or implemented, an outcome is determined based on the likeliness. Step 1: Identify factors to serve as focus of strategic control. The likely outcome is determined whenever a strategy is chosen and implemented. Its difficult, but you must prioritize what to control because you cannot monitor and assess every minute factor that might impact your strategy. The BSC approach requires a deliberate thought process around your high-level goals (objectives), the actions youll take to reach them (initiatives or projects), and how youll know if theyve been achieved (measures). Strategic controls are like a steering wheel, which goes a long way in navigating an organization. If the first two phases have been done well, the third phase of the controlling process comparing performance with standards should be straightforward. It then makes adjustments to avoid such problems. Process control usually triggers when a factory produces a particular set of products and drops below expectation or an increase in error rate. There are primarily four different types of strategic controls, which are as follows: Strategies are usually founded on certain assumptions about the forces and factors which affect the organization. If at any time your objective changes (or a measure or initiative is no longer serving your strategic plan), its simple to remove those linkages and create new ones in ClearPoint. You can quickly identify which metrics have fallen below target and which ones are trending upwards, and move forward with quantitative information in hand to decide what's next. Build a bi-focal approach thatll help you look at every situation from all angles. Is each action or project happening as planned? Here are some examples of strategic control: 1. Sign up for Harappas. For example, if one of your objectives is to become an employer of choice in your geographic area, you might have linked measures related to employee retention, employee satisfaction survey results, number of new applicants, etc. Did you set the right standards? On the other hand, strategic controls require a large amount of data and an extended timeframe. For example, consider the goal of product leadership. After a strategy is confirmed, it is to be implemented over a long time to guide the organization and adapt to the internal and external environment. Operational control can be automated, or it can also be manual. Strategic surveillance is a broader information scan. Thank you for posting such informative articles I am eternally grateful for the same. Verify the achievement of the objectives proposed by the company, according to the established deadlines and times. Causes of deviations can range from unrealistic objectives to the wrong strategy being selected achieve organizational objectives. Strategic control is a way to manage the execution of your strategic plan. In ClearPoint, you can use RAG status indicators to show progress at a glance. After these milestones are identified, a detailed and in-depth review of implementation is made to reconfirm its relevance to 18 different objectives. Learn everything you need to know about Balanced Scorecards in this article. The entire purpose of implementation control is to confirm and ascertain that these programs and projects help the organization achieve its goals. The process bridges gaps and allows you to adapt your strategy as needed during implementation. Try to achieve the objectives at the lowest possible cost, so that resources are used effectively and efficiently. Companies have to understand that to get a high market share, they need to have good employees, and having good employees is one thing but maintaining them is a different thing altogether. Take Corrective Action: The final step in the strategic control process is determining the need for corrective action. Strategic control is a method to manage and execute a strategic plan. Now that you know what your process looks like, here's how you enact it. Important types of strategic controls used in organizations are: Recommended reading: Strategic Control and Operational Control. Figure-1 represents the relationship between strategic planning and strategic control process. There could be multiple deviations in your strategy implementation. // ]]>//