Strategic Management: Formulation and Implementation
Implications For Controlling Formal Plans
- Contingency plans are less possible in strategic
control. The whole idea of contingency plans is
much more difficult in the strategic arena. It is
more difficult to generate all possible actions
ahead of time in a strategic problem, because the
alternatives are too numerous and too complex.
- Triggering contingency planning is more important
in strategic control. Because of this difficulty
in making contingency plans, triggering an
examination of alternatives when things do not go
according to plan becomes much more important.
- Preprogrammed variance analysis is less possible
in strategic control. For an operational control
model might be possible that the computer performs
all possible variance analyses (in the accounting
sense). For strategic control it is both difficult
technically and impossible practically.
- A variance inquiry system is more necessary in
strategic control. It seems important to have an
inquiry system linked to the formal planning model
with which combinations of deviations from plans
can be explored by the human operator.
- A variance inquiry language is more necessary in
strategic control. Some sort of language in which
the human can do variance inquiries is highly
desirable in the area of strategic control.
- An augmented formal planning system in more
necessary in strategic control. A formal planning
system should be augmented with the variance
inquiry language described. This would permit
the same system that was used to generate the plan
to be used in controlling that plan, leading to
both ease of additional analysis as well, as to
consistency with the plan being controlling.