TRATEGIC CONTROL

MECHANISMS AND
PERFORMANCE METRICS
Strategic evaluation and
control is the last phase of the
strategic management process.
It begins with the
organization's vision, mission,
goals, and objectives and is
followed
by the formulation of
strategies. These strategies are
then accordingly implemented.
To ensure that the
designed strategies are
correctly and suitably
implemented,
strategic control mechanisms
have to be employed.
TRATEGIC CONTROL
MECHANISMS AND
PERFORMANCE METRICS
Strategic evaluation and
control is the last phase of the
strategic management process.
It begins with the
organization's vision, mission,
goals, and objectives and is
followed
by the formulation of
strategies. These strategies are
then accordingly implemented.
To ensure that the
designed strategies are
correctly and suitably
implemented,
strategic control mechanisms
have to be employed.
TRATEGIC CONTROL
MECHANISMS AND
PERFORMANCE METRICS
Strategic evaluation and
control is the last phase of the
strategic management process.
It begins with the
organization's vision, mission,
goals, and objectives and is
followed
by the formulation of
strategies. These strategies are
then accordingly implemented.
To ensure that the
designed strategies are
correctly and suitably
implemented,
strategic control mechanisms
have to be employed.
TRATEGIC CONTROL
MECHANISMS AND
PERFORMANCE METRICS
Strategic evaluation and
control is the last phase of the
strategic management process.
It begins with the
organization's vision, mission,
goals, and objectives and is
followed
by the formulation of
strategies. These strategies are
then accordingly implemented.
To ensure that the
designed strategies are
correctly and suitably
implemented,
strategic control mechanisms
have to be employed.
STRATEGIC CONTROL MECHANISMS
Strategic evaluation and control is the last phase of the strategic management process. It
begins with the organization's vision, mission, goals, and objectives and is followed by the
formulation of strategies. These strategies are then accordingly implemented. To ensure
that the designed strategies are correctly and suitably implemented, strategic
control mechanisms have to be employed. Strategic control is the process of
monitoring the various strategies of the organization and determining whether
there is a parallelism between the organizational milleu and that of the environment. As
earlier emphasized, strategic control should always be discussed and actualized in the context
of the environment, thus, the word, strategic. Strategic control can be categorized
from two different perspectives: according to purpose and according to process.

Types of Strategic Control According to Purpose

There are four types of strategic control according to purpose presupposition control,
implementation control, strategic surveillance, and vigilance control.

 Presupposition control is designed to check systematically and regularly

whether the arguments set during the planning and implementation processes are still
binding. When strategies are formulated, these are based on certain premises or
assumptions. However, since the external environments are continuously
changing, there is a need to closely monitor the set strategies and make the
necessary change or changes when needed.

 Implementation control is applied to evaluate whether the intermediate

strategies are consistent with the overall strategy. In many instances, a strategy
consists of small activities that complement each other and lead to the ultimate
attainment of the mother strategy. In cases when these transitional
activities become misaligned for one reason or another, then there is need to review
the reasons for such occurrence.

 Strategic surveillance is a monitoring system whereby a broad range of

occurrences inside and outside the organization threatens the implementation of an
organization's strategy. Surveillance means shadowing, observing, and
 scrutinizing the milieu. It demands constant awareness, consciousness, and
knowledge of how the implementation of the strategy/strategies is faring.

 Vigilance control is a special type of strategic control that is applied when immediate
reconsideration of an organization's strategy/strategies is pursued. This is called for
when unusual events happen and there is no choice but for the organization to
attend to it and do the corresponding changes

Informational control
Informational control deals with the external strategic context and the assumptions and
premises that provide the foundation for an organization’s strategy. The key question
addressed by informational control is: do the organization’s goals and strategies still “fit”
within the context of the current strategic environment. Managers need to understand the
organization’s strategic context, monitor the external environment, and understand and
critically evaluate the collective assumption base of the management team. These activities
are important to strategy formulation regardless of the approach to strategic control. The
essential difference is this: in the traditional approach, the understanding of the strategic
context and examination of the assumption base is an initial step in the process of strategy
formulation; in the contemporary approach, informational control is part of an ongoing
process of organizational learning that continuously updates and challenges the assumptions
and premises that underlie the organization’s strategy. The benefits of continuous monitoring
are evident-time lags are dramatically shortened, changes in the competitive environment are
detected earlier, and the organization’s ability to respond with speed and flexibility is
enhanced. Very few organizations have sufficient resources to dedicate full-time staff to
ongoing environmental monitoring. Those that are most successful maximize the use of both
formal (e.g., published statistics, market studies, and competitor analyses) and informal
sources of information-with a strong bias toward informal sources and “soft data.” Our
research among small and mid-sized high technology firms suggests that informal contact
with customers, distributors, sales and service personnel, and other industry participants
accounts for over half the information such organizations have about competitors.

Behavioral control

Behavioral control is focused on implementation-doing things right-and effectively

implementing strategy by manipulating the key “levers” of behavioral control: culture,
rewards, and boundaries. The traditional approach to strategic control emphasizes boundaries
and constraints. The contemporary approach relies on a balance among culture, rewards, and
boundaries. We believe there are two compelling reasons for an increased emphasis on
culture and rewards in implementing a strategic control system. First, the competitive
environment is increasingly complex and unpredictable, demanding both flexibility and quick
response to its challenges. As firms simultaneously downsize and face the need for increased
coordination and integration of activities across organizational boundaries, a control system
based primarily on boundaries and constraints is dysfunctional, and the use of rewards and
culture to align individual and organizational goals becomes increasingly important. Second,
the implicit long-term contract between the organization and its key employees has been
eroded. Today’s younger managers have been conditioned to see themselves as “free agents”
and to view a career as a series of opportunistic changes. As managers are advised to
“specialize, market yourself, and have work, if not a job,” the importance of culture and
rewards in building organizational loyalty claim greater importance.

References

Strategic Control Mechanisms AND Performance Metrics - STRATEGIC CONTROL MECHANISMS

AND PERFORMANCE

https://www.studocu.com/ph/document/urdaneta-city-university/business-
administration/strategic-control-mechanisms-and-performance-metrics/32349526

Out of (Strategic) Control - ResearchGate

leadto disaster.Here’sa moreflexibleapproach,shapedby ongoing information, strong
corporateculture, and appropriaterewardsystems. Out of (Strategic)Control JOSEPH C. PICKEN
GREGORY G....
https://www.researchgate.net/profil e/Joseph-Picken/publication/247142322_Out_of...