Please enable JavaScript.
Coggle requires JavaScript to display documents.
Evaluation and Control, Gabriel Koresy - Coggle Diagram
Evaluation and Control
• Evaluation and control processes are crucial in businesses to adapt to changing environments, which can lead to a company's decline if not addressed.
• Evaluation involves answering three questions: where is the firm now compared to where it wants to be, what lies ahead that can positively or negatively affect the business, and where will the company end up if it continues its current course.
• Gap analysis is created by answering these questions and is essential in internal innovation to determine if the innovation strategy is working or if changes are necessary.
• Technological firms should conduct several key evaluations, including strategic environment evaluation, external environment evaluation, and network evaluation.
• Control processes are crucial in innovation strategy and involve evaluating performance, identifying necessary changes, and implementing control mechanisms to ensure success.
• There are three types of control mechanisms: financial, strategic, and cultural.
• Financial controls focus on achieving financial goals, such as sales growth and profit, and involve direct methods to improve financial outcomes.
• Strategic controls are critical for long-term success and involve meeting strategic goals, such as being the market leader or viewed as the most innovative firm in the industry.
• Cultural controls refer to the culture that exists within the organization and encourage individuals to act in a desired manner.
• Cultural controls are perhaps the most important for a technology-focused firm as they help ensure that information is shared, risks are taken, and critical actions are implemented.
-
• Consistent benchmarking internally and externally provides valuable insight into performance and the future
• Firms should also consider social responsibility, changes in external environment, and responding to paradigm shifts
• Considering these issues helps firms develop effective evaluation and control systems to achieve goals and maintain a competitive edge.
• Quality control is critical to a firm's success, and Edwards Deming championed it.
• Deming's fourteen points of quality control are still central to today's quality programs and emphasize a long-term view, continuous improvement, and a focus on changing systems rather than blaming workers.
• Key points of Deming's quality program include breaking down barriers between departments, providing training and education, and making quality everyone's goal.
• The evaluation and control process is a continuous process that impacts the planning and implementation phases of innovation in a company.
• There are levels of control in an organization and factors to be considered at each level to ensure effective control processes.
• The board of directors sets the vision and focus for control mechanisms, while top management establishes the control mission and determines innovation projects.
• Divisional managers and team leaders implement the control mission and establish specific goals and objectives.
• Questions must be addressed at each level to ensure that the control process is effective and aligned with the levels above and below it.
• If gaps are identified between goals and performance, adjustments must be made within the organization.
• Evaluation and control processes are intertwined, and firms should frequently ask themselves how they are doing and what changes they need to make to be successful.
• Cybernetic control is the most commonly used control method in businesses, where firms receive feedback to make changes in their actions.
• Firms should look beyond meeting current goals and objectives during the evaluation process and have the capability to recognize and take advantage of emergent opportunities.
• The organizational context and its supportiveness or desperation determine if the firm will succeed in identifying such opportunities when it conducts its evaluation.
• The managers' capability to see opportunities and shift the organization through emergent strategies often determines success.
• During the planning stage, the analysis of the company's environment should occur to ensure that there are no significant changes among competitors or external variables that could affect the company.
-
• During the implementation stage, the concept of strategic fit becomes critical in integrating implementation with evaluation and control.
• If the pieces of the organization do not fit together, it is unlikely that the company will reach its goals.
• Organizational structure is critical to the integration of evaluation and control with the implementation process.
• The structure should change as processes, products, and systems change.
• The organizational structure should be set up to indicate lines of communication and coordination.
• As the structure grows more complex, the nature of the evaluation and control process also grows more complex.
-
• 3M also has a strategic goal of being the industry leader in various domains, with some quantifiable measures such as market share.
• If there is a gap in strategic goals, strategic controls are implemented to address it.
• 3M encourages a culture that supports internal innovation, making cultural controls particularly powerful for sustained competitive advantage.
-
-
• Creation of value must be remembered in all activities, including evaluation and control
-