Strategic Management: Formulation and Implementation

Strategic Control Process

Although control systems must be tailored to specific situations, such systems generally follow the same basic process.

Regardless of the type or levels of control systems an organization needs, control may be depicted as a six-step feedback model):

  1. Determine what to control. What are the objectives the organization hopes to accomplish?
  2. Set control standards. What are the targets and tolerances?
  3. Measure performance. What are the actual standards?
  4. Compare the performance the performance to the standards. How well does the actual match the plan?
  5. Determine the reasons for the deviations. Are the deviations due to internal shortcomings or due to external changes beyond the control of the organization?
  6. Take corrective action. Are corrections needed in internal activities to correct organizational shortcomings, or are changes needed in objectives due to external events?

Feedback from evaluating the effectiveness of the strategy may influence many of other phases on the strategic management process.

A well-designed control system will usually include feedback of control information to the individual or group performing the controlled activity.

Simple feedback systems measure outputs of a process and feed into the system or the inputs of a system corrective actions to obtain desired outputs. The consequence of utilizing the feedback control systems is that the unsatisfactory performance continues until the malfunction is discovered. One technique for reducing the problems associated with feedback control systems is feedforward control. Feedforward systems monitor inputs into a process to ascertain whether the inputs are as planned; if they are not, the inputs, or perhaps the process, are changed in order to obtain desired results.