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Chapter 18: Strategic control/ Improvement - Coggle Diagram
Chapter 18: Strategic control/ Improvement
Strat ctrl as a component of strat management;
Strat ctrl
, that concentration on evaluating the chosen strat in, order to
verify
whether the
results produced
by the strat are those that
were intended.
A process during which managers evaluate how well an org has performed.
tasks:
Id the basis of the strat(What should be achieved)
Determining the actual results
Comparing the actual results with expected results
Taking corrective measures to attain the expected results
4 Types of strat ctrl,
the first 3 are used to review the content of a strat and the last is used to evaluated strategy implementation.
Premise Control;
focused type by which managers
evaluate those premises and assumptions
that are likely to change and those that
will have a major impact on the org and its strat.
Premise control allows us to examine whether or not that
assumption holds true after the strat has been implemented
and adapt to changes accordingly.
i.e. external factor like inflation, intra, industry factors(competition and supply) affect this type of strat ctrl.
in context, a bike brand start to make skateboards, with millennials being the target market, after sales review the fastest growing consumers was the generation younger.
Strat surveillance;
ids overlooked factors, inside and outside an org, which can affect the strat.
i.e.
info source
such as
trade mags, newspapers, financial journals, conferences and economic forums
, are all strat surveillance ctrls that can
id potential changes in an industry
and offer possible responses.
Special alert control;
the thorough and often rapid reconsideration of the orgs, strat because of a sudden, unexpected event.
Special alert ctrl allows
assessing a business in particular circumstances
such as natural disasters or a market crash.
Helps us analyse a strat under new circumstances and handle them appropriately with tools, procedures and priorities.
i.e. Covid and 9/11, after 9/11 US commercial airlines were compelled to adopt safety protocols that were tighter and stricter to address the intense fear of flying on commercial planes seen in passengers*
Implementation control;
Focuses on the most important part of a strat, implementation.
Assess implementation activities, events, and results step-by-step
and ensures that no changes are needed.
i.e. Setting performance standards, measuring real performance and analysing the root cause behind failure to meet these standards are common forms of implementation.
in context, schedules, budgets and milestones
2 types of implementation control;
1.
Monitors the strat thrusts
or projections that provide managers with info, regarding any adjustments that should be made.
Milestone review
involves a thorough reassessment of the strat and whether the org should continue with this strat direction.
Criteria to evaluate strat;
Criteria are based on an internal as well as an external assessment,
1. Consistency
,
identify whether the strat is
still consistent with org's goal and policies
. lack of consistency leads to friction between departments.
If one department is successful and the other isn't, it is inconsistent
Internal.
2. Feasibility,
Identify whether the strat can be
implemented with in the limitation of resources.
Internal
3. Consonance
evaluate set of trends
on which the
strat is based.
Critical exchange is the external environment and the strat should be adapted to respond.
External
4. Advantage
,
identify whether the
strat is still effective
in
providing competitive advantage.
used to see if expected results are achieved
External
The Balanced scorecard as strat ctrl;
used to
increase the success rate of strat
implementation and control.
intended to provide clear
prescription as to what organisation should measure in order to "balance" the financial perspective
Financial perspective,
Fin objectives relate to profitability and are measured.(operating income and ROI)
strat focuses on making more money by
Selling more
Spending less
i.e. Shareholder's views of performance. how should we appear to shareholders, to be financially successful??
KPI's:
Return on Capital
Economic Value Added
Sales Growth
Cost reduction
Customer perspective;
customer satisfaction is at the heart of this perspective(about value creation for customers.)
i.e. what the org needs to do to achieve; customer retention, customer acquisition and customer profitability, and to increase the market share??
e.g. Customer satisfaction
KPI's;
Customer satisfaction
customer retention
Acquisition of new customers
Internal business perspective,
the internal processes create and deliver customer value.
must accomplish 2 important components,
they produce and deliver the value proposition for customers
they improve the processes and reduce the cost of the productivity component in the financial perspectives.
customer experiences value, both customer and financial outcomes will improve.
i.e.
Assess quality of people and processes. what business process must we excel at, to satisfy customers and shareholders??
KPI's;
Manufacturing costs
Job turnover
Product quality
Learning and growth perspective,
describes how people, tech and the org climate combine to support the strat and to provide the ultimate source of sustainable value creation.
i.e. Examine how an org learns and grows. To achieve vision, how will we sustain our ability to change and improve??
KPI's;
New product development record
R&D core competencies
Employee retention
Sustaining competitive advantage through continuous improvement:
Depends on orgs developing distinctive competencies that will contribute to superior efficiency, quality and innovation, and responsiveness towards customers.
Comparison with past performance,
orgs must be flexible with the historical exp and performance with current situations to prevent tunnel vision as it may be out of standard.
Comparison with key success factors;
purpose is to id key determinants of success and then, through the process of internal analysis, to compare the orgs internal strengths and weakness against these key success factors(KSF).
Benchmarking,
is comparing the org to the current industry leader, using products, services or org practices.
value chain analysis, is a good way to id activities and compare them to competitors.
4 stages;
planning,
iding establishing and documenting specific study focus areas, key events and defs.
Data collection
; involves the selection of appropriate data collection tools to accumulate qualitative data and learn form the best practices of different orgs
Data analysis and reporting,
Adaptation
TQM,
a culture; inherent is this culture is full commitment to quality and attitude expressed by everybody's involvement in the process of continuous improvement of product and services, through the use of innovative scientific methods.
the culture behind quality and attitude of the whole orgs involvement in continuously improving the products and the org as a whole.
principles:
Commitment to quality.
A clear idea of what quality means from the customer's perspective.
Focus on the orgs business processes through the use of scientific tools, tech and methods
Striving for continuous improvement.
Focus on the horizontal flow of business.
6 sigma approach to continuous improvement,
highly rigorous and analytical approach to quality and continuous improvement with an objective to improving through defect reduction, yield improvement, improved customer satisfaction and best-in-class performance
Re-engineering;
org is reorganized to to eliminate barrier between the org and customer, creating value.
the radical redesign of the org process to improve dramatically in critical performance measures, such as cost, quality, service and speed
3 generalisations;
Orgs that find themselves in deep competitive trouble.
orgs with manager who are able to id some future problems and start re-engineering before competitive advantage diminishes
orgs that want to extend their leading positions over competitors
ISO 9001
;
Focus of the org on processes to achieve increase customer satisfaction through emphasising:
Managment responsibility
Better resource management
Product realisation
Improved measurement, documentation, assessment and adjustment of the output.
Requirements for a quality management ctrl system.
Demonstrating the ability to provide products and services that consistently meet the requirements of customers.
Customer satisfaction is enhanced through the effective application of the system
provides common language for quality in orgs
purpose is to ensure that output of the org meets customers needs.