Strategic control is essentially how you manage the execution of your strategic plan, especially when facing unpredictable situations. According to provided information, strategic control is a management process designed to handle unknowns and ambiguity while tracking the strategy's implementation and its results. It's about making sure your planned strategy stays on course and adapts effectively to changes.
Understanding Strategic Control
Strategic control isn't just about monitoring progress; it's about being proactive and adaptable. Here's a breakdown of key aspects:
- Managing Execution: It ensures your strategic plan is put into action effectively.
- Handling Unknowns: It prepares you for unexpected challenges and changes in the environment.
- Tracking Implementation: It monitors how well the strategy is being implemented.
- Analyzing Results: It evaluates the outcomes of the strategy and identifies areas for improvement.
The Strategic Control Process
While the provided reference doesn't explicitly outline the steps in the strategic control process, generally, it involves the following stages:
| Step | Description |
|---|---|
| 1. Establish Standards | Set clear, measurable goals and performance indicators (KPIs) aligned with the strategic plan. |
| 2. Measure Performance | Regularly track and assess actual performance against the established standards. |
| 3. Compare Performance to Standards | Analyze the variance between actual performance and the set standards to identify deviations. |
| 4. Evaluate Deviations | Determine the significance of any deviations and investigate the underlying causes. |
| 5. Take Corrective Action | Implement necessary changes or adjustments to the strategy, plans, or operations to address the identified deviations. |
Example of Strategic Control in Action
Imagine a company launching a new product.
- Establish Standards: They set a sales target of 10,000 units in the first quarter.
- Measure Performance: After one month, only 2,000 units have been sold.
- Compare Performance to Standards: There's a significant deviation from the projected sales target.
- Evaluate Deviations: They discover that marketing efforts are not reaching the target audience effectively.
- Take Corrective Action: They revise their marketing strategy, focusing on more targeted online advertising and social media campaigns.
By continuously monitoring and adjusting, the company can get back on track towards achieving its strategic goal.
In essence, strategic control is a critical process for organizations seeking to not only implement their strategies effectively but also to adapt and thrive in dynamic and uncertain environments.
