SLraLeglc LvaluaLlon and ConLrol

ur 88 8hardwa[
nLroducLlon
W ueflnlLlon of conLrol
verlfylng wheLher everyLhlng occurs ln conformlLy
wlLh Lhe plan adopLed Lhe lnsLrucLlons lssued and
prlnclples esLabllshed
L operaLe sln Lhree Lhlngs people Lhlngs and acLlons
ConLrol funcLlon lncludes Lhree procedures
W Measurlng acLual performance
W Comparlng acLual performance Lo sLandards
W 1aklng correcLlve acLlon Lo ensure LhaL planned evenLs
acLually occur
eneral model of ConLrol rocess by
Samuel C CerLo (1994)
Work
conLlnues
Measure of
performance
new work
slLuaLlon
beglns
ConLrolllng
beglns
no correcLlve
acLlon
necessary
Compare
measuremenL
Lo sLandards
1ake correcLlve
acLlon change
plans
organlzaLlon
and/or lnfluenclng
meLhods
erformance
equlvalenL Lo
sLandards
erformance
slgnlflcanLly
dlfferenL from
sLandards
1hree Lypes of managerlal conLrol
Puman maLerlal
caplLal and
flnanclal resources
acqulred and
comblned ln
organlzaLlon
WlLhln whlch
planned acLlvlLy
occurs
Leadlng Lo resulLs
achleved
new Work
slLuaLlon
beglns
ConcurrenL
conLrol
leedback
conLrol
SLraLeglc conLrol
W locuses on
MonlLorlng and evaluaLlng Lhe sLraLeglc
managemenL process Lo ensure LhaL lL funcLlons ln
Lhe rlghL dlrecLlon
W urposes of sLraLeglc conLrol
Are Lhe lnLernal sLrengLhs sLlll holdlng good?
Pave we added oLher lnLernal sLrengLhs?
rocess of SLraLeglc ConLrol
W ConslsL of slx sLeps
1 key areas Lo be monlLored
W MacroenvlronmenL
W SLraLeglc monlLorlng and conLrol lncludes company's mlsslon
ob[ecLlves goals sLraLegy formulaLlon and lmplemenLaLlon
W nLernal operaLlons
2 LsLabllshlng sLandards
W revlous years' achlevemenL
W CuallLy of producLs/servlces
W CuanLlLy of producLs Lo be produced
W CuallLy of managemenL
W nnovaLlveness/creaLlvlLy
W Long Lerm lnvesLmenL value
W volume of sales and/or markeL value
W volume of markeL share
Measurlng performance
W SLraLeglc audlL
LxecuLlon and evaluaLlon of organlzaLlons operaLlons
affecLed by Lhe sLraLegy lmplemenLaLlon
Pow Lo conducL a sLraLeglc audlL
W 8evlew key documenLs
SLraLeglc plan
8uslness or operaLlonal plans
CrganlzaLlonal arrangemenLs
Ma[or pollcles governlng maLLers such as resource allocaLlon and
performance measuremenL
W 8evlew flnanclal markeL and operaLlonal performance
agalnsL benchmarks and lndusLry norms Lo ldenLlfy Lhe key
Lrends
How to conduct a strategic audit.contd
W aln and undersLandlng of
rlnclpal roles responslblllLles and reporLlng relaLlonshlps
ueclslonmaklng process and ma[or declslon made
8esources
nLerrelaLlonshlps beLween funcLlonal sLaff member and
buslnesses
W ndenLlfy sLraLeglc lmpllcaLlons
W ueLermlne lnLernal and exLernal perspecLlves
W ndenLlfy Lhe aspecLs of sLraLegy LhaL are worklng well
locused analysls
8ecommendaLlons
SLraLeglc AudlL MeasuremenL MeLhods
W key sLraLegyevaluaLlon quesLlons
uo you feel LhaL Lhe sLraLeglcmanagemenL sysLem
exlsLs Lo provlde servlce Lo you ln your day Lo day
work?
Pow lL has helped u ln Lhls respecL?
Pas Lhe sLraLeglc managemenL sysLem provlded
Lhe servlce LhaL you feel was promlsed aL Lhe sLarL
of lLs deslgn and lmplemenLaLlon?
uo you feel comforLable uslng Lhe sysLem?
CuallLaLlve organlzaLlonal
measuremenL
W s organlzaLlonal sLraLegy lnLernally
conslsLenL?
W s organlzaLlonal sLraLegy conslsLenL wlLh lLs
envlronmenL?
W s organlzaLlonal sLraLegy approprlaLe glven
organlzaLlonal resources?
W s Lhe Llme horlzon of Lhe sLraLegy
approprlaLe?
organlzaLlonal sLraLegyconLd
W no of unlLs produced per Llme perlod
W CosL of producLlon cosL of markeLlng
W roducLlvlLy and producLlon efflcle
W Lmployee Lurnpverncy levels