SM PPT RAHUL NAIR.pptx strategic ass3sment and cntrl

Strategic managment

1. Strategic Assessment and Control By : Rahul Nair 50114903922 MBA – B Semester 3 Strategic Management PPT

2. Nature of Strategic Assessment Evaluate effectiveness of an organizational strategy, in achieving the organizational objectives. Performs the task of keeping an organization, on track.

3. Importance of Strategic Assessment The need for feedback Appraisal and reward Check on the validity of strategic choice Congruence between decisions and intended strategy Successful culmination of the strategic management process Creating inputs for new strategic planning Ability to coordinate the tasks performed

4. Barriers in Assessment Limits of Controls Difficulties in measurement Resistance to Assessment Short-termism Relying on efficiency versus effectiveness

5. Requirements of Effective Assessment Control should involve only the minimum amount of information Control should monitor only managerial activities and results Control should be timely Long term and short term control should be used Control should aim at pinpointing exceptions Rewards for meeting or exceeding standards should be emphasized

6. Strategic Control

7. Four Types of Strategic Controls Premise Control Implementation Control Strategic Surveillance Special Alert control

8. Premise Control Premises control is necessary to identify the key assumptions and its implementation. Premises control serves the purpose of continually testing the assumptions to find out whether they are still valid or not. This enables the strategists to take corrective action at the right time rather than continuing with a strategy which is based on erroneous assumptions.

9. Implementation Control Implementation control is aimed at evaluating whether the plans, programs, and projects are actually guiding the organization towards its predetermined objectives or not.

10. Strategic Surveillance Strategic surveillance aimed at a more generalized and overarching control “designed to monitor a broad range of events inside and outside the company that are likely to threaten the course of a firm’s strategy”.

11. Special Alert Control Special alert control, which is based on a trigger mechanism for rapid response and immediate re-assessment of strategy in the light of sudden and unexpected events

12. Operational Control Aimed at the allocation and use of organizational resources Concerned with action or performance

13. How do Strategic Control and Operational Control Differ Attribute Strategic Control Operational Control 1. Basic question Are we moving in the right direction? How are we performing? 2. Aim Proactive, continuous questioning of the basic direction of strategy Allocation and use of organisational resources 3. Main Concern Steering the organization’s future direction Action control 4. Focus External environment Internal organization 5. Time Horizon Long- term Short- term 6. Main Techniques Environmental scanning, information gathering, questioning and review Budgets, schedules, and MBO

14. Process of Assessment Setting standards of performance Measurement of performance Analyzing variances Taking corrective action

15. Setting of Standards Quantitative Criteria It has performed as compared to its past achievements. Its performance with the industry average or that of major competitors. Qualitative Criteria There has to be a special set of qualitative criteria for a subjective Assessment of the factors like capabilities, core competencies, risk- bearing capacity, strategic clarity, flexibility, and workability.

16. Measurement of Performance The Assessment process operates at the performance level as action takes place. Standards of performance act as the benchmark against which the actual performance is to be compared. It is important, however, to understand how the measurement of performance can take place.

17. Analyzing Variances The measurement of actual performance and its comparison with standard or budgeted performance leads to an analysis of variances. Broadly, the following three situations may arise: The actual performance matches the budgeted performance The actual performance deviates positively over the budget performance The actual performance deviates negatively from the budgeted

18. Taking Corrective Actions There are three courses for corrective action: checking of performance, checking of standards, and reformulating strategies, plans, and objectives.

19. Techniques of Strategic Assessment and Control Assessment Techniques for Strategic Control Assessment Techniques for Operational Control

20. Assessment Techniques for Strategic Control Techniques for strategic control could be classified into two groups on the basis of the type of environment faced by the organisation . The organisation that operate in a relative stable environment may use strategic momentum control, while those which face a relatively turbulent environment may find strategic leap control more appropriate.

21. Assessment Techniques for Operational Control Operational control is aimed at the allocation and use of organisational resources. The Assessment techniques are classified into three parts: Internal analysis Comparative analysis Comprehensive analysis.