2. Strategic Control
It takes into account the changing assumptions that
determine a strategy, continually evaluate the strategy
as it is being implemented, and take the necessary
steps to adjust the strategy to the new requirement.
It is early warning systems and differ from post action
controls which evaluate only after the
implementation has been completed.
3. Types of strategic control
1. Premise control
2. Implementation control
3. Strategic surveillance
4. Special control
The basic theme of strategic control is to continually
assess the changing environment to uncover events
that may significantly affect the course of an
organization’s strategy.
4. Premise Control
Premise control is necessary to identify the key
assumptions, and keep track of any change in them so
as to assess their impact on strategy and its
implementation.
Premise control serves the purpose of continually
testing the assumptions to find out whether they are
still valid or not. It helps in the strategists to take
corrective action at right time.
Premise control responsibility can be assigned to
corporate planning staff.
5. Implementation control
The implementation of a strategy results in a series of
plans, programmes, and projects.
Resource allocation plays important role.
Implementation control may leads into strategic
rethinking.
Implementation control can be implemented by
identifying and monitoring strategic requirement
with respect to market success. It also helps in
determining whether to go for diversification or not.
It can also be carried out through identifying critical
points in terms of events, substantial resource
allocation, or significant end-time.
6. Strategic surveillance
It is generalized aimed at designed to monitor a
board range of events inside and outside the company
that are likely to threaten the course of firm’s
strategy.
It can be done through a broad based, general
monitoring on the basis of selected information
sources to uncover that are likely to affect the strategy
of an organization.
7. Special Control
It is based on trigger mechanism for rapid response
and immediate reassessment of strategy in the light of
sudden and unexpected events.
Crises and critical situations that occur unexpectedly
and threaten the course of a strategy
8. Operation Control
It is aimed at the allocation and use of organizational
resources through an evaluation of the performance
of organizational units.
It is concerned with action or performance.
The evaluation process for operation control deals
with –
a. Setting standards for performance
b. Measurement of performance
c. Analysis variances
d. Taking corrective action