Strategic Evaluation & Control

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Nature of Strategic Evaluation

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Participant in strategic evaluation Free Powerpoint Templates Page 4 .

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Control should be timely. Free Powerpoint Templates Page 6 .. Control should monitor only managerial activities and results. Rewards for meeting or exceeding standards should be emphasized. Control should involve only the minimum amount of information. Requirement of Effective evaluation Control should aim at pinpointing exceptions. Long term and short term control should be used.

Strategic Control Free Powerpoint Templates Page 7 .

Four Types of Strategic Controls Premise Control Implementation Control Strategic Surveillance Special alert control Free Powerpoint Templates Page 8 .

Serves the purpose of continually testing the assumptions to find out whether they are still valid or not.Premise Control Necessary to identify the key assumptions and its implementation. Which enables the strategists to take corrective action at the right time rather than continuing with a strategy which is based on erroneous assumptions. Free Powerpoint Templates Page 9 .

and projects are actually guiding the organization towards its predetermined objectives or not.Implementation Control Implementation control is aimed at evaluating whether the plans. programs. Free Powerpoint Templates Page 10 .

Strategic Surveillance Strategic surveillance aimed at a more generalized and overarching control ³designed to monitor a broad range of events inside and outside the company that are likely to threaten the course of a firm¶s strategy´. Free Powerpoint Templates Page 11 .

which is based on a trigger mechanism for rapid response and immediate reassessment of strategy in the light of sudden and unexpected events Free Powerpoint Templates Page 12 .Special Alert Control Special alert control.

Operational Control Free Powerpoint Templates Page 13 .

Operational Control Aimed at the allocation and use of organizational resources Concerned with action or performance Free Powerpoint Templates Page 14 .

term LongShort.term ShortBudgets. MBO information gathering. Main Concern 4. Focus 5.How do Strategic Control and Operational Control Differ ? Attribute 1. continuous questioning of the basic direction of strategy Steering the organization·s future direction External environment Allocation and use of organizational resources Action control 3. Free Powerpoint Templates questioning and review Page 15 . Basic question 2. schedules. and Environmental scanning. Time Horizon 6. Aim Strategic Control Operational Control Are we moving in the right How are we performing? direction? Proactive. Main Techniques Internal organization Long.

Process of Evaluation Setting standards of performance Measurement of performance Analyzing variances Taking corrective action Free Powerpoint Templates Page 16 .

flexibility.  Its performance with the industry average or that of major competitors Qualitative Criteria Criteria for capabilities. strategic clarity. and workability Free Powerpoint Templates Page 17 .Setting of Standards Quantitative Criteria  It has performed as compared to its past achievement. core competencies. risk bearing capacity.

to understand how the measurement of performance can take place.Measurement of Performance The evaluation process operates at the performance level as action takes place. however. It is important. Free Powerpoint Templates Page 18 . Standards of performance act as the benchmark against which the actual performance is to be compared.

Analyzing Variances The measurement of actual performance and its comparison with standard or budgeted performance leads to an analysis of variances. There may arise three situations: The actual performance matches the budgeted performance The actual performance deviates positively over the budget performance The actual performance deviates negatively from the budgeted Free Powerpoint Templates Page 19 .

and Reformulating strategies. Checking of standards. Free Powerpoint Templates Page 20 . and objectives.Taking Corrective Actions There are three courses for corrective action: Checking of performance. plans.

Techniques of Strategic Evaluation and Operational Control Free Powerpoint Templates Page 21 .

Evaluation Techniques for Strategic Control Techniques for strategic control could be classified into two groups:Strategic momentum control :Used by the organization that operate in a relative stable environment. Strategic leap control:Used by organizations those which face a relatively turbulent environment. Free Powerpoint Templates Page 22 .

Evaluation Techniques for Operational Control Operational control is aimed at the allocation and use of organizational Resources. The evaluation techniques are classified into three parts: Internal analysis Comparative analysis Comprehensive analysis. Free Powerpoint Templates Page 23 .

analyzing variances . measuring performance. Role of Appraisal System Helps to measure the actual performance and provides for the control system to work. & taking corrective action. Role of Control System Used for setting standards.Role of Organizational Systems In Evaluation Role of Information System Helps managers to keep the track of performance through control reports. Free Powerpoint Templates Page 24 .

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