1 UNIT 12 STRATEGY EVALUATION AND CONTROL
2 What is it? Establishing whether a company’s chosen strategy is achieving objectives Is the company on track? How is implementation moving? Problems do happen at implementation stage Evaluation and control keeps the company on track.
3 Basic Elements of Evaluation and Control
Reviewing external and internal factors which inform the present strategy Measuring performance Undertaking corrective action
4 Importance of Evaluation and Control
Confirms that what is being done is in accordance to the plan (link to plan) Confirms that results are in line with objectives (are we achieving what we intended?) Helps improve performance (measuring employee performance) Provides the link between the strategic plan and the day-to-day operations of the company
5 Types of Controls Strategic Control Operational (Management Control)
6 Strategic Control Intended to steer a company towards its long-term direction Linked to the external environment Planning premises Industry conditions Competitor developments Market shits, etc. Sets the basis for operational control
7 Operational Control Tracking progress towards operational objectives
Evaluation of operational performance Establishing targets Measuring performance Identifying deviations Taking corrective action
8 The Balanced Scorecard
Integrating strategic and operational controls A management system that guides companies to clarify their strategies and implement them Linking the strategic plan to all areas of a company Linking strategy to operations