• AVR Sudha

• Mansi Patel
• Heyi Lu

CONTROLLING • Pallavi Sethi

• Abigail kumah
MANAGEMENT FUNCTIONS

Planning Organizing

Controlling Leading
LEVELS OF CONTROL
STRATEGIC CONTROL
• The process used by
organizations to control the
formation and execution of
strategic plans.
• Strategic control is an
evaluation exercise
focused on ensuring the
achievement of your goals.
The process bridges gaps
and allows you to adapt
your strategy as needed
during implementation.
Focused on the achievement
of future goals.
OPERATIONAL CONTROL
• Operational controls monitor and
evaluate day-to-day functions to
correct any problems as soon as
possible. Operational controls may
be either manual or automated,
and can involve people, processes,
and technology.
• They flag potential risks, identify
misalignments between plans and
actions, and effectively implement
changes to stay on course with
your strategy.
Focused on events in current period.
 STRATEGY CONTROLLING
 Are we moving in the proper direction?

 Are our assumptions about major trends and changes

correct?

 Should we adjust or about the strategy ?

Strategic control is the process used by organizations to
 How are we performing?
control the formation and execution of strategic plans; it
is a specialized form of management control, and differs
 Are objectives and schedules being met ?
from other forms of management control in respects of
its need to handle uncertainty and ambiguity at various  Are cost and , revenues, and cash flow matching
points in the control process.
projections ?
 Do we need to make operational changes ?
STEPS
Establishing No
performance Ensuring
standards deviations

Comparing actual
performance Tracks Detects
against strategy problems
standards, and

Taking corrective Knowing

Activities
action when and
necessary.  planned
Correcting
 Premise
TYPES Control
SpecialAlert
Control
Implementin
g
Control
Strategic
surveilliance
PREMISE CONTROL

Premise
Control
SPECIAL ALERT
CONTROL

Special
Alert
Control
IMPLEMENTING
CONTROL

Implementing
Control
 STRATEGIC
SURVEILLANCE

Strategic
Surveillan
ce
CHARACTERISTICS
 STRATEGIC
CONTROL PROCESS
BALANCE SCORE CARD FOR STRATEGIC CONTROL

 The entire strategic planning, implementation, and control

process takes significant effort and thought. It requires a lot
of buy-in from your leadership team. It also requires
employees to understand why their actions are important
and continuously work toward achievement of goals—even
if those goals shift over time.
 A Balanced Scorecard helps tie your overall strategy to
those day-to-day activities, giving more clarity about
the what and why of strategic implementation to the entire
company. You’ll be able to do both operational and
strategic control within one framework, linking the two
processes and getting everyone on the same page. The
Balanced Scorecard approach can provide a clear
prescription as to what companies should measure during
implementation to enact strategic control.
 CASE STUDY
 Case Study: Citicorp: Scenario & Problem Citicorp has been pursuing an
aggressive product development strategy intended to achieve an annual
earnings growth 15% while it becomes an institution capable of supplying
clients with any kind of financial service anywhere in the world. A major
obstacle to the achievement of this earnings growth is Citicorp’s exposure to
countries. Citicorp is sensitive to the wide variety of predictions about
impending Third World defaults.
 Citicorp: Strategic Surveillance Control  Citicorp’s long-range plan
assumes an annual 10% default on its Third World loans over any five-year
period. Yet it maintains active strategic surveillance control by having each
of its international branches monitor daily announcements from key
governments and from inside contacts for signs of changes in a host
country’s financial environment.  When the surveillance detects a potential
problem, management attempts to adjust Citicorp’s posture.  For example,
when Peru’s former president, Alan Garcia, stated that his country would not
pay interest on its debt as scheduled.  Citicorp raised its annual default
charge to 20% of its $100 million
PUTTING STRATEGIC CONTROL IN PLACE IS CRITICAL TO A SUCCESSFUL STRATEGY
IMPLEMENTATION.
WITHOUT PROPER CONTROLS,

YOUR STRATEGY WON’T HAVE THE GUT CHECKS REQUIRED TO ENSURE IT REMAINS RELEVANT,

on track,

and performing

at or above standards.

THANK YOU