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    STRATEGICEVALUATIONANDCONTROL

    Nature of strategic evaluation The purpose of strategic evaluation is to evaluate the effectiveness of strategy in achieving

    organizational objectives.

    The strategic evaluation &control can be designed as the process of determining the effectiveness ofa given strategy in achieving the organizational objectives and taking corrective action wheneverrequired.

    Importance of strategic evaluation

    The ability to coordinate the tasks performed by individual managers and also groups division or

    SBUs through control of performance .

    In the absence of coordination and controlling techniques the strategic evaluation is

    - need for feed back, appraisal and reward

    Check on the validity of strategic choice.

    congruence between Decisions & Intended Strategies.

    Successful culmination of the strategic Management

    Process.Creating Inputs for New strategic planning

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    PARTICIPANTSIN STRATEGIC EVALUATION

    The main participants in strategic evaluation are

    BODs CEOs

    SBU/profit center Heads.

    Financial controllers, Internal, External Auditors.

    Corporate Planning Staff.

    Middlelevel Managers.

    Barriers in Evaluation

    There are five major types of barriers in Evaluation. They are:

    Limits of controls.

    Difficulties in Measurement.

    Resistance to Evaluation. Short-termism.

    Relying on Efficiency Vs Effectiveness.

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    STRATEGIC CONTROL

    It is a continuous evaluation system used in business processes. There may be some gap between the

    time a strategy is formulated and when it is implemented.

    The process of implementation is a time-consuming process.Strategic controls take into account the changing assumptions that determine a strategy, continuously

    evaluating the strategy as it is being implemented and take the necessary steps to adjust the strategy to

    the new requirements.

    Types of Strategic control

    Premisescontrol

    Strategicsurveillance

    SpecialAlert

    control

    Implementation

    control

    Strategiccontrol

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    TYPESOF STRATEGICCONTROL

    Premise control

    It is necessary to identify the key assumptions and keep track of any change in them so as to assesstheir impact on strategy and its implementation .

    Eg:- Environmental factors, Organizational factors.

    Implementation control

    The implementation of a strategy results in a series of plans, programmes and projects.

    Implementation control is aimed at evaluating whether the plans, programmes and projects are

    actually guiding the Organization towards its pre-determined objectives or not.

    Implementation control leads to strategic rethinking.

    Strategic surveillance

    It is aimed at a more generalized and overaching control.

    It is designed to monitor a broad range of events inside and outside the company that are likely to

    threaten the course of a firms strategy.Special Alert control:- This is based on a trigger mechanism for rapid response and immediate

    reassessment of strategy in the sudden & unexpected events.

    Eg:- Crisis and critical situations.

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    OPERATIONAL CONTROL

    Operational control is concerned with action or performance of an organization.

    Operational control aims at allocation and use ofOrganizational resources through evaluation of

    the performance of organizational units such as divisions, SBOS etc to assess their contribution

    to the achievement of organizational objectives

    Process of evaluation :-The process of evaluation is applied for exercising operational control.

    It involves for steps.

    OPERATIONAL

    CONTROL

    TAKING CORRECTIVE

    ACTIONS

    ANALYSING

    VARIANCE

    SETTING STANDARDS

    OF PERFORMANCE

    MEASUREMENT OF

    PERFORMANCE

    The strategies, plans and objectives result in a set of performance standards which form

    the basis for evaluation through measurement of performance.

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    STRATEGYPLAN

    OBJECTIVES

    SETTING

    STANDARDS

    OFPERFROMA

    NCE

    ACTUAL

    PERFORMANCE

    MANAGEME

    NT

    OFPERFORMA

    NCE

    ANALYSINGVARIANCE

    FEEDBACK

    RE

    F

    O

    R

    M

    U

    L

    A

    TE

    C

    H

    EC

    K

    S

    T

    A

    N

    D

    A

    R

    D

    S

    C

    H

    E

    C

    K

    P

    E

    R

    F

    O

    M

    A

    N

    C

    E

    DIAGRAM

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    Setting standards of performance It involves the 3 questions like1.What standards should be set?

    2.How should these standards be set?

    3.In what terms should these standards be expressed?

    Actual PerformanceManagement of Performance

    Analyzing Variance

    Techniques of Strategic Evaluation & Control

    Evaluation Techniques for Strategic control

    I . Strategic Momentum control

    Responsibility control centers

    The Underlying success factors

    Generic Strategies

    II . Strategic Leap control

    Strategic Issue Management

    Strategic field Analysis

    Systems Modeling

    Scenarios

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    Evaluation Techniques for Operational Control

    Internal Analysis.

    VRIO framework

    Value chain AnalysisQuantitative Analysis

    Qualitative Analysis

    Comparative Analysis

    Historical Anal

    Industry Norms

    Bench Marking

    Comprehensive Analysis

    Key factor Rating

    Business Intelligence system

    The Balanced Score-card

    Special Purpose Techniques

    Network Techniques

    Management by Objectives(MBO)

    Memorandum of Understanding(MOU)

    Auditing Techniques

    Corporate Social AuditEnvironmental Audit

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    Role of Organisational Systems in Evaluation

    The process of strategic evaluation and control does not operate in isolation; it works on the basis of

    different Organizational Systems that are used to implement strategies.

    This evaluation can be done in the form of information, control and Reward Systems.

    Role of Information System

    The use of Computerized information systems in Organizations are helpful in Performance Monitoring and

    reporting.

    In the control process, the evaluation is done by comparing actual performance with standard performance.

    The measurement of performance can be done on the basis of reports generated through the information system.

    The purpose of the information management system is to enable managers to keep track of performance

    through control reports.With the increasing sophistication of the information management systems and the use of I.T. , the

    evaluation is done.

    By using computerized information systems, it is benefit for the managers in availing of real-time

    information.

    SEM ;- Strategic Enterprise Management

    SAP:-

    ERP:- Enterprise Resource Planning.

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    Role of Control System

    The control system is the heart of any evaluation process for Setting Standards, measuring

    performance, analyzing variances and taking corrective action.

    The central role of the control system in important.The role of the development system in evalution, is helpful for strategists to initiate and implement

    corrective action.

    Employee Performance Management Systems used through applications of I.T., play a helpful role in

    the development of a system for exercising control in organizations.

    Role of Reward System

    Organizations design and operate their reward systems on the basis of the Appraisal of performance of individuals.

    When the performance of managers is appraised, their contribution to Original Objectives increases.

    Hence Reward Systems contribute Organization success and effectiveness

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