MANAGING IMPLEMENTATION RISK (CHAPTER 7)
1. • Proactive controls are used to timeously identify any potential threats to
the implementation process. The purpose of proactive control is to identify
threats, through environmental scanning, to the implementation process at an
early stage.
• Reactive controls are mainly used to track the progress of implementation,
The Strategic Control Process. The purpose of reactive control is to ensure
that the implementation process remains on track and to take corrective
actions.: Proactive vs Reactive controls what are they?
2. 1. Provides a coordinating mechanism
2. Ensures that resources are deployed in such a way that an organisation
attains its overall objectives
3. Enables management to cope with environmental change and uncertainty
4. Ensures that costly mistakes are avoided
5. Ensures a balance between effectiveness and efficiency.
Organisational effectiveness is 'doing the right things'. This implies that the
organisation has a strategic perspective which is:
a. Right for the present
b. Developed in line with future needs and trends
c. Linked to a clear vision, mission and overall purpose
Organisational efficiency is the sound and optimal management of organisa-
tional resources to maximise the returns from it. Organisational efficiency is
rather complex and takes place mainly at the functional level. These seven
measures are discussed below:
1. Marketing efficiency
2. Operations efficiency
3. Supply chain efficiency
4. Research and development efficiency
5. Information management efficiency
6. Financial efficiency
7. Human resources efficiency: THE IMPORTANCE OF STRATEGIC CONTROL
Strategic control is necessary in any organisation for the following reasons:
3. 1. Backward-looking strategic control is broadly the same as the operational
control process and consists of setting performance standards, measuring
performance and addressing deviations. The strategic control process,
organisational maturity model and the balanced scorecard are all examples.
, MANAGING IMPLEMENTATION RISK (CHAPTER 7)
2. Forward looking, on the other hand, due to the complexity and long time
frames of strategic management, control cannot be solely backward looking.
It also needs to consider key events in the environment and how that will
influence the strategic direction, strategic plans and implementation efforts of
the organisation going forward.: Strategic control can be broadly classified into
two categories, namely backward looking and forward looking.
4. Strategic control is necessary in any organisation for the following reasons:
1. Provides a coordinating mechanism - links the strategic planning, imple-
mentation and control processes of an organisation.
2. Ensures that the organisation's resources are deployed in such a way that
it attains its overall objectives and that resources match key success factors
and competitive advantage.
3. It enables management to cope with environmental change and uncertainty
- A properly designed strategic control system can help managers anticipate,
monitor and respond to changing circumstances.
4. Complex organisations need strategic control measures to ensure that
costly mistakes are avoided. Small mistakes and errors do not often seriously
damage the financial health of an organisation.
5. It ensures a balance between organisational effectiveness and efficiency.: -
What is Strategic control and why is it important?
5. 1. Belief systems - Belief systems encourage and guide the necessary
search for new opportunities and innovations. They are the set of organisa-
tional definitions that senior managers communicate formally and reinforce
to provide a set of basic values and beliefs, purpose and direction. The vision
statement and mission statement reinforce the belief system.
Belief systems that communicate core values such as mission statements,
credos and vision statements.
2. Boundary systems - that define the limits of freedom, such as codes of
conduct and ethics statements. They set boundaries on the search for new
opportunities by defining and limiting the acceptable domain for opportuni-
ty-seeking behaviour.
3. Diagnostic control systems - diagnostic control systems are designed to
, MANAGING IMPLEMENTATION RISK (CHAPTER 7)
take up as little management time as possible. A diagnostic control system
measures the intended strategy (i.e. it is aligned with the strategic manage-
ment process)
4. Interactive control systems - that provide strategic feedback and vehicles
to update and redirect strategy such as competitive analysis and market
feedback reports. Interactive control systems are aligned more with emergent
strategy and accordingly contribute to the formation of strategy.: Four types of
control systems that managers use to control business strategy.
6. • Step 1: Establish performance benchmarks
• Step 2: Establish desired outcomes/baseline performance
• Step 3: Measure actual performance
• Step 4: Establish and evaluate deviations
• Step 5: Take corrective action
• Step 6: Recognise and reward organisational performance: THE STRATEGIC
CONTROL PROCESS
7. 1. Assess current performance
2. Plan for organisational development
3. Classify level of performance.
4. Evaluate deviation from the plan.
5. Set intermediate and future targets to achieve.
6. Plan for organisational improvement
7. Recognise and reward organisational performance.: THE ORGANISATION-
AL MATURITY MODEL
An organisational maturity model provides the organisation with a tool against which
these measures of effectiveness and efficiency can be measured.
1. • Proactive controls are used to timeously identify any potential threats to
the implementation process. The purpose of proactive control is to identify
threats, through environmental scanning, to the implementation process at an
early stage.
• Reactive controls are mainly used to track the progress of implementation,
The Strategic Control Process. The purpose of reactive control is to ensure
that the implementation process remains on track and to take corrective
actions.: Proactive vs Reactive controls what are they?
2. 1. Provides a coordinating mechanism
2. Ensures that resources are deployed in such a way that an organisation
attains its overall objectives
3. Enables management to cope with environmental change and uncertainty
4. Ensures that costly mistakes are avoided
5. Ensures a balance between effectiveness and efficiency.
Organisational effectiveness is 'doing the right things'. This implies that the
organisation has a strategic perspective which is:
a. Right for the present
b. Developed in line with future needs and trends
c. Linked to a clear vision, mission and overall purpose
Organisational efficiency is the sound and optimal management of organisa-
tional resources to maximise the returns from it. Organisational efficiency is
rather complex and takes place mainly at the functional level. These seven
measures are discussed below:
1. Marketing efficiency
2. Operations efficiency
3. Supply chain efficiency
4. Research and development efficiency
5. Information management efficiency
6. Financial efficiency
7. Human resources efficiency: THE IMPORTANCE OF STRATEGIC CONTROL
Strategic control is necessary in any organisation for the following reasons:
3. 1. Backward-looking strategic control is broadly the same as the operational
control process and consists of setting performance standards, measuring
performance and addressing deviations. The strategic control process,
organisational maturity model and the balanced scorecard are all examples.
, MANAGING IMPLEMENTATION RISK (CHAPTER 7)
2. Forward looking, on the other hand, due to the complexity and long time
frames of strategic management, control cannot be solely backward looking.
It also needs to consider key events in the environment and how that will
influence the strategic direction, strategic plans and implementation efforts of
the organisation going forward.: Strategic control can be broadly classified into
two categories, namely backward looking and forward looking.
4. Strategic control is necessary in any organisation for the following reasons:
1. Provides a coordinating mechanism - links the strategic planning, imple-
mentation and control processes of an organisation.
2. Ensures that the organisation's resources are deployed in such a way that
it attains its overall objectives and that resources match key success factors
and competitive advantage.
3. It enables management to cope with environmental change and uncertainty
- A properly designed strategic control system can help managers anticipate,
monitor and respond to changing circumstances.
4. Complex organisations need strategic control measures to ensure that
costly mistakes are avoided. Small mistakes and errors do not often seriously
damage the financial health of an organisation.
5. It ensures a balance between organisational effectiveness and efficiency.: -
What is Strategic control and why is it important?
5. 1. Belief systems - Belief systems encourage and guide the necessary
search for new opportunities and innovations. They are the set of organisa-
tional definitions that senior managers communicate formally and reinforce
to provide a set of basic values and beliefs, purpose and direction. The vision
statement and mission statement reinforce the belief system.
Belief systems that communicate core values such as mission statements,
credos and vision statements.
2. Boundary systems - that define the limits of freedom, such as codes of
conduct and ethics statements. They set boundaries on the search for new
opportunities by defining and limiting the acceptable domain for opportuni-
ty-seeking behaviour.
3. Diagnostic control systems - diagnostic control systems are designed to
, MANAGING IMPLEMENTATION RISK (CHAPTER 7)
take up as little management time as possible. A diagnostic control system
measures the intended strategy (i.e. it is aligned with the strategic manage-
ment process)
4. Interactive control systems - that provide strategic feedback and vehicles
to update and redirect strategy such as competitive analysis and market
feedback reports. Interactive control systems are aligned more with emergent
strategy and accordingly contribute to the formation of strategy.: Four types of
control systems that managers use to control business strategy.
6. • Step 1: Establish performance benchmarks
• Step 2: Establish desired outcomes/baseline performance
• Step 3: Measure actual performance
• Step 4: Establish and evaluate deviations
• Step 5: Take corrective action
• Step 6: Recognise and reward organisational performance: THE STRATEGIC
CONTROL PROCESS
7. 1. Assess current performance
2. Plan for organisational development
3. Classify level of performance.
4. Evaluate deviation from the plan.
5. Set intermediate and future targets to achieve.
6. Plan for organisational improvement
7. Recognise and reward organisational performance.: THE ORGANISATION-
AL MATURITY MODEL
An organisational maturity model provides the organisation with a tool against which
these measures of effectiveness and efficiency can be measured.
