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Week_11_Strategic control and Performance evaluation

The document outlines a six-step strategic control process essential for evaluating and refining business strategies. It emphasizes the importance of strategic control for better resource allocation, adaptability, and decision-making, while also identifying common pitfalls such as siloed data and lack of visibility. Additionally, it discusses the balanced scorecard as a performance metric and the role of feedback loops in facilitating corrective actions and performance improvement.

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2 views

Week_11_Strategic control and Performance evaluation

The document outlines a six-step strategic control process essential for evaluating and refining business strategies. It emphasizes the importance of strategic control for better resource allocation, adaptability, and decision-making, while also identifying common pitfalls such as siloed data and lack of visibility. Additionally, it discusses the balanced scorecard as a performance metric and the role of feedback loops in facilitating corrective actions and performance improvement.

Uploaded by

mrtouseefarain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Week 11

Strategy Control and Performance Evaluation


Dr. Rana Muhammad Naeem
DMS, IUB RYK Campus
Learning Outcomes

• Overview of six-step strategic control process

• Understand common fails with strategic control

• Understanding balanced scorecard and performance metrics

• Corrective action and feedback loop


What Is Strategic Control?
Strategic control is part of a strategic management process that shows
how well your strategy is doing now, so you can further refine it for
future execution. It helps you achieve future goals by evaluating
historical performance so you can identify patterns and trends, and
spot risks early on.

The Importance Of Strategic Control

• Better resource allocation

• Fast adaptability

• Confident decision-making
Strategic Control Process In 6 Steps
1. Define strategic objectives

• To have control over something, you must have a clear


understanding of what you want to achieve.

• Gather and analyze relevant performance data to identify


key areas for improvement or growth.

• Set clear and specific goals and objectives that align with the
organization’s overall strategy.
2. Assign KPIs

Measure progress toward your strategic objectives using Key


Performance Indicators (KPIs). Select the right KPIs that will
help you benchmark performance.

3. Measure progress
Don’t just set up and forget your KPIs. Regularly measure
performance standards to ensure you’re on the right path.
Use strategy dashboards to gain visibility on what your team is
doing and precisely measure progress against your KPIs.
4. Analyze performance

Piece the puzzle together by analyzing your organization’s


performance and looking for patterns and trends that reveal
any underlying issues.

Look for strengths and weaknesses and identify opportunities


for improvement.

Use a strategy report to communicate these findings to the


top management team and get everyone on the same page.
5. Analyze deviations

No strategy is perfect, so expect some deviations from your


anticipated outcomes. This is perfectly normal and should be an
opportunity to determine why these deviations happened in the
first place.

Discover what caused these below-standard performances and


identify if there were cracks in your strategy or if uncontrollable
forces were at play.

Alternatively, the results could be better than anticipated, which


will help to identify what works well and strengthen your strategy.
6. Adapt your strategy

Stop what’s not working and double down on what is. Adjust
your objectives, KPIs, or overall strategy based on the results
of your analysis.

Reallocate resources where necessary, and change how you


execute your current strategy. You may also need to revisit
your organization’s overall strategic direction.
Common Fails With Strategic Control

Business strategies often fail not because companies fail to


create one but because they fail at strategy implementation.
The following are common setbacks that prevent strategic
managers from executing control.

1. Siloed data
With so many tools available, business units and teams pick their
favorites and generate data independent from other systems. They waste
time going back and forth between reports, likely missing critical pieces
of the puzzle. This siloed data hinders effective analysis and decision-
making.
2. No visibility into alignment

Strategic control requires clear visibility into how various initiatives align
with the organization's strategic objectives. Lack of visibility can result in
disconnected efforts, redundant activities, or misaligned resource
allocation.

3. Lack of ongoing insights


Strategic control isn’t a waiting game. It’s about real-time insights into
the progress you’re making. Use control systems like automated
dashboards and regular performance reviews of metrics that showcase
your strategy’s actual performance.

4. Lack of context
Balanced scorecard and performance
metrics
The performance metric known as a balanced scorecard is meant to
measure the intellectual capital of a company, such as training, skills,
knowledge, and any other proprietary information that gives it a
competitive advantage in the market.

• A strategic planning and performance management tool.

• Aligns business activities with vision and strategy.

• Enhances internal and external communication.

• Monitors performance against strategic goals.


Corrective action and feedback loops

Feedback loops can help businesses identify and fix problems,

take corrective actions, and improve performance. Corrective

feedback is information that helps people understand how

their actions affect others, and is meant to lead to positive

change.

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