Strategic Evaluation and Control

Strategy Evaluation and Control

Strategy Evaluation and Control

Strategy evaluation is that phase of the strategic management process in which top management try to assure that the strategy formulated is being properly implemented and is meeting its objectives of the enterprise. A follow through on strategy and at implementation requires a control system and effective information system, which provides managers with accurate and complete feedback in real-time so that they can act on the data.

Control and evaluation process help strategic managers monitor the progress of a plan. Strategy evaluation is simply an appraisal of how well an organization has performed. Adequate and timely feedback is the cornerstone of effective strategy.

Designing Effective Strategic Control System

  • To ensure the effectiveness of strategic control, executive should enter that they have the following criteria.
  • They are future oriented
  • They are closely linked to strategy evaluation
  • This practice has the advantage of requiring managers to determine the appropriateness of their strategies. Attention is given to four major criteria:
  • Suitability of the strategies: does it match with the changing environment of the organization. The strategy is suitable when it meets the objectives of the organization and its changing environment.
  • Acceptability:

    does the strategy meets the needs of the stakeholders? It is, acceptable when it suit the expectation of stakeholders

  • Feasibility:

    is the strategy practicable and implementable given the resources of the organization? It is less risky?

  • Advantage:

    managers should determine whether the strategy give the company a competitive advantage

  • Consistency:

    does the plans, and programs mutually supportive and consistent. Are the means and the end synchronized?

Purpose of Strategic Control 

  1. The purpose of strategic control is to identify whether the organization should continue with its present strategy or modify it is the light of changed circumstances. Operational control should assist the organization to be both efficient and effective, and in this way help the chosen strategy to work successfully.
  2. The basic forms of control are concerned with physical systems, so that for example a wall thermostat may be control the central healing system of a house. If the room temperature fall below the desired temperature set on the thermostat, the boiler in started so that water in the radiators is heated and the temperature rises to desired level.
  3. Many of the quality control processes within companies are physical control mechanisms/designed to indicate whether or not a particular physical process is operating at a desired level of efficiency. At the end of a manufacturing process, for example, a commodity can be checked to see if it operates art it should.
  4. If it is rejected, it can be scraped reworked. It is obviously better to discover any faults at an earlier stage, and the usual method is to sample units of the product in order to check that they confirm to the agreed specifications! Modern Control techniques are based on an ‘ever free’ or ‘zero-defect’ approach and ‘doing it right first time’. At a strategic level, quality can be built into the planning of the product or service, so that it confirms to design specifications and processes are introduced to get it right time.
  5. These process controls are also applied to people in attempting to assess those parts of their work which can be measured. For example, salesmen are subject to sales targets which may be in terms of the number of sales or their value. Doubled lazing sales are often based on this system, so that the people employed to make the initial approach to households may be rewarded according to the number of sales interviews they arrange. The salesmen are then paid according to the value of the sales they make. In a similar way, the work of people in tele-sales can be monitored by a central control system so that the number of calls per hour or per day and the number of successes can be measured precisely.
  6. More general control methods used in organization to encourage on high level of efficiency and effectiveness in employees in include quality assurance (QA) and QUEST (Quality in Every Single Task). QA supports teams of employees with systems and resources to help them understand the quality characteristics of their products and services and to undertake quality controls. QUEST is based on the idea that every individual or group in an organization is both a customer and a supplier to other people in the organization; and considers how best they can meet the needs of their ‘customer’ and ‘suppliers’ Key Result Area (KRA) is a technique aimed at focusing on realistic outcomes for each team or individual by identifying a range of quality characteristics for the team which are consistent with the company’s strategy, and the agreeing realistic standards for each of these quality characteristics and devising a system which can be measured and monitored.
  7. Total Quality Management (TQM) is based on the idea that managers are so some of their objectives, within a broad version, that all employees in the organization have both-a clear focus on their aims and goals and an understanding of the context in which they are working as well as taking responsibility for work over which they have control. Quality improvement and accountability then become a question of peer pressure within the ‘internal customer’ framework and quality improvement is a responsibility in which everyone actively participates “strategic control can be described as the continuous critical evaluation of plans, inputs, processes and outputs to provide information for future action” controls are concerned with what has happened but are also aimed at anticipating what may happen.
  8. The control of manufacturing processes by sampling and testing the products occurs after the processes have taken place. Control applied through the company culture and by quality assurance systems are attempts to provide a situation where problems are anticipated. For example, public relations is both about the quality of the relationships with customers and others, and is also about the way of achieving favorable relationships Publicity and public relations attempts to maintain the reputation of an organization and to enhance it, so that it is not just concerned with reacting to problems but also with encouraging an environment that enables the organization to work through problems without losing its good reputation.

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