Strategic control -Feedback strategic control is accurately
measured by performance. Performance is the
-is the process of monitoring the various
ratio of the result derived from the resources
strategies of the organization and determining
invested by an organization or by the formula:
whether there is a parallelism between the
organizational milieu and that of the Financial Performance
environment.
-For most of all organizations intent on making
-the word strategic control can be categorized profit, or at least, continue to exist, financial
from two different perspectives: according to
purpose and according to process.
4 Types of Strategic Control According to
Purpose
1. Presupposition Control – is designed to
check systematically and regularly whether
arguments set during the planning and
implementation processes are still binding.
2. Implementation Control – is applied to
evaluate whether the intermediate strategies performance is most important. These
are consistent with the overall strategy. modes are expressed through financial
metrics.
3. Strategic Surveillance – a monitoring
system whereby a broad range of occurrences Profitability Measures
inside and outside the organization threatens
- show the organization or the company's
the implementation of an organization’s
ability to generate earnings as compared to its
strategy.
expenses and other relevant costs incurred
4. Vigilance Control- is a special type of during a specific period.
strategic control that is applied when
immediate reconsideration of an organization’s
strategy/ strategies is pursued.
Sequential Strategic Control
- Is the traditional way of looking at strategic
monitoring. It is sequential, in the formulation of
strategy is followed progressively by the
implementation of these designed strategies.
Once the strategies have been employed, it is
only then that strategic monitoring is carried
out.
Liquidity Measures
Types of Strategic Control According to - measure the extent to which an organization
Approach has cash to meet immediate and short term
1. Interactive Strategic Control obligations, or the ability of its current assets to
meet current liabilities.
- Is more appropriate approach for strategic
control. Describe as interactive, this approach
shows the communicating and collaborative Gearing Measures
natured of process of strategy formulation,
strategy implementation and strategy control. - determinants of financial leverage.
Feedback strategic control
- Is a combination of sequential and interactive Market Performance
approaches. Although strategy formulation,
strategy implementation and strategy
monitoring appear to be sequential.
Performance Metrics
Financial performance, feedback can be
adequately actualized through market
performance. Examples such as market growth
rate, market share, net market contribution,
marketing return on sales, marketing return on
investments, and customer retention.
People Performance
Due to hypercompetition permeating in the
environment, effectiveness has incorporated a
deeper and more challenging orientation. It has
adopted a renewed, emphatic, and broader
perspective concentrating and focusing more
on people and how they operationally and
uniquely do things. Thus, analyzing
differentiated people performance are
expressed through indices.
Strategic Management Revisted
-Strategy management discusses the salient
issues and concerns in the corporation and
business world and addresses these
challenges through practical and well-tested
approaches that are constructive functional
and valuable.