Unit: 4 STRATEGY IMPLEMENTATION

AND EVALUATION
“Strategies most often fail because they aren’t executed well.”

“Successful strategy formulation does not guarantee successful strategy

implementation.”

- Larry Bossidy and Ram Charan

Strategy implementation

Strategy implementation is the process of putting organisation’s various strategies into action by setting
annual or short-term objectives, allocating resources, developing programmes, policies, structures,
functional strategies etc. Even the best strategic plan will be useless unless it is implemented properly.
The strategy implementation is, therefore, the most difficult element of the strategic management
process. This is so because there has to be a “fit” between the strategy and the organisation.

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Strategy Implementation
• Strategy implementation is actually putting strategies in to action.
• The Strategies formulated at various levels of the organizations are implemented
so as to achieve the objectives taken up at the corporate level.
• Strategy implementation happens in two stages
1) Project Implementation
2) Procedural Implementation

• A poor control on strategy implementation may result in unexpected situation of

Malfunctioning of Strategy
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Implementation moves responsibility from the corporate level to operational
levels. This shift in responsibility from strategists to divisional, functional and
operational managers may cause implementation problems especially when
strategic decisions come as a surprise to middle and lower-level managers.
Therefore, strategic decisions must be communicated and understood throughout
the organisation. It is also essential that divisional and functional managers be
involved as much as possible in strategy formulation activities and, likewise
strategists be involved in strategy implementation activities.

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Barriers and Issues in Strategy
Implementation
Management must keep in mind the following key issues that arise in
implementing strategy and how empowering systems might relate to such issues.
1. Time Horizon: Such systems have both long-term and short-term dimensions. For
example, rewards like productivity bonus should be based on quantitative
measures of performance related to the short-term. On the other hand, it is
appropriate to link long-term rewards with qualitative measures and a few relevant
quantitative measures.

2. Risk Considerations: When risk-prone behaviour is desired, qualitative measures

of performance may be more beneficial, for example, rewards like bonus or stock
options. This is because quantitative measures may lead to risk-averse behaviour to
avoid failure rather than risk prone behaviour to achieve results.

3. Bases of Individual Rewards: Reward systems should be linked to an

individual’s capability, effort and job satisfaction. If rewards are geared to only one
aspect, it may have a negative effect on performance in other aspects.

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4. Bases of Group Rewards: An important issue in reward systems is whether to have
individual rewards or group rewards. Rewarding individuals for effort and performance
may be difficult unless the organisational structure permits individual performance to be
isolated from that of others. Thus, for example, with respect to managerial contribution
to corporate performance, individual rewards may be beneficial and appropriate because
individual’s contribution is relatively independent of others. On the other hand, if
individual’s contributions are relatively interdependent, it would be appropriate to
adopt schemes based on group performance. Again, rewarding individuals may be
necessary where entrepreneurial or creative behaviours are sought to be encouraged. On
the contrary, if greater co-operation and team work is sought to be rewarded, group
reward schemes would be more desirable.

5. Corporate and SBU Perspectives: In multi-divisional organisations, reward systems

with a balanced approach towards corporate interests and the interests of the Strategic
Business Units (SBUs) should be designed, where business units have greater autonomy
and independence. Likewise, if the SBUs are not likely to influence corporate
performance, unit-based reward schemes would be more beneficial. But in the case of
directors and general managers, placed in the units, who have dual responsibility of
achieving unit as well as corporate objectives, due care must be taken to design balanced
empowering environment.

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Model for Strategy Implementation
According to Steiner and Miner, “the implementation of policies and
strategies is concerned with the design and management of systems to
achieve the best integration of people, structures, processes and resources in
reaching organisational purposes”. Implementation of strategy therefore
involves a number of interrelated decisions, choices, and a broad range of
activities. It requires an integration of people, structures, processes etc. Mc
Kinsey’s 7-S model is good at capturing the importance of all these elements
in the implementation of strategy. The 7-S framework was developed in 1970s
by the well -known consultancy firm, the Mc Kinsey Company of the United
States. The 7-S framework is illustrated:

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Mintzberg’s 5P’s to Define Strategy

• Plan
• Ploy
• Pattern
• Position
• Perspective
Plan
• A plan is an intended course of action.
• For example, a business makes a plan to increase their market share.
• Plan is not enough on its own. This is where the other four Ps come into play.

Ploy Strategy

• A strategy can be a ploy

• ploy is a specific maneuver intended to gain an advantage on an opponent or competitor
• For example, a business may threaten to introduce a new product or reduce price of product to scare
competitors

Pattern Strategy
• Pattern means a series of actions.
• For example, a business makes a plan to increase market share 
• Then the business does a pattern of behavior to follow the plan for example, a company that regularly
markets very expensive products is using a "high end" strategy.
Position Strategy
• Position means place in relation to competition
• For example, a business may position itself in the market as a high quality service provider
it reflects decisions to offer particular products or services in particular markets.

Perspective Strategy 

• Perspective is a way of looking at the world

• For example, different businesses view themselves and their customers differently that is,
vision and direction.  
7-S Framework
This framework basically deals with organisational change. The main thrust
of change is not connected only with the organisation’s strategy. It has to be
understood by the complex relationships that exist between strategy,
structure, systems, style, staff, skills and super-ordinate goals. These are
called the 7-S of the organisation. The 7-S framework suggests that there are
several factors that influence an organisation’s ability to change. The
variables involved are interconnected so that altering one element may well
impact other connected elements. Hence, significant changes cannot be
achieved in any variable without making changes in all the variables. There
is no starting point or implied hierarchy in the shape of the diagram, so it is
not obvious which of the 7 factors would be the driving force in changing a
particular organisation at a particular point of time. All the elements are
equally important. The critical variables of change could be different across
organisations. They could also be different in the same organisation.
Fundamentally, the framework makes the point that effective strategy
implementation is more than an individual subject, but is coupled with skills,
styles, structures, systems, staff and super-ordinate goals.
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The purpose of the model is to show the interrelationship between different
elements of an organisation, and the need to bring them together.

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Structure: “Structure” means the organisational structure of the company. The design of
organisational structure is a critical task of top management. Organisational structure refers to the
relatively more durable organisational arrangements and relationships. It prescribes the formal
relationships among various positions and activities, communication channels, roles to be
performed by various members of an organisation.
Systems: “Systems” mean the procedures that make the organisation work. They include the
rules, regulations and procedures, both formal and informal, that complement the organisational
structure. Systems include production planning and control systems, cost accounting procedures,
capital budgeting systems, performance evaluation systems etc. Often, changes in strategy
require
changes in systems.
Style: “Style” means the way the company conducts its business. Top managers in
organisations can use style to bring about change. Organisations differ from each other in their
“styles” of working. The style of an organisation, according to the McKinsey framework,
becomes evident through the patterns of actions taken by the top management team over a period
of time. Thus, an important part of managing change is establishing and nurturing a good ‘fit’ 20
Staff: “Staff” refers to the pool of people who need to be developed, challenged and
encouraged.
It should be ensured that the staff has the potential to contribute to the achievement
of goals. Three important aspects about staff are:
1. Selecting meritorious people for specific organisational positions.
2. Developing abilities and skills in them, to take up challenging assignments.
3. Motivating them to give their best to achieve strategic goals.

Skills: “Skills” are the most crucial attributes or capabilities of an organisation.

Skills in the 7-S framework can be considered as an equivalent of “distinctive
competencies”. For example, Hindustan Lever is known for its marketing skills,
TELCO for its engineering skills, IBM for its customer service, Du Pont for its
research and development skills and Sony for its new product development skills.
Skills are developed over a period of time and are a result of a number of factors.
Hence, to implement a new strategy, it is necessary to build new skills.

Strategy: “Strategy” is the long-term direction and scope of an organisation. It

is the route that the company has chosen to achieve competitive success.

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Using the 7-S Model

• Hard S’s (Easier to change)

– Strategy
– Structure &
– Systems

• Softer S’s (Harder to change directly and take longer time)

– Staffing
– Skills
– Style &
– Shared Values 
Merits of 7-S Framework

The virtue of 7-S framework is that it highlights some important organisational

interconnections and their role in affecting change. It illustrates, in a simple way, that
the real task of implementing strategy is one of bringing all 7-Ss into harmony. When
the 7-S are in good alignment, an organisation is poised and energized to execute
strategy to the best of its ability.

Secondly, the Mc Kinsey’s model provides a convenient checklist for judging

whether an organisation is ripe for implementing strategy. It also helps in diagnosing
why the results emanating from the implementation of a strategy fall short of
expectations and therefore, what new ‘fits’ would be required.

Thirdly, the framework also helps strategists in evaluating their organisations along
each of the seven dimensions, thereby identifying organisational strengths and
weaknesses.

Finally, Mc Kinsey’s 7-S framework is a powerful expository tool. However, it

should be remembered that changing the organisational elements is not an easy task.
But that should not stop one from striving to bring about change.

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Limitations of 7-S Framework

The 7-S framework shows that relationships exist and it provides some limited
clues as to what constitutes more effective strategy implementation. Beyond this,
however, it is not precise. For example, the framework says little about the how and
why of interrelationships. The model is therefore poor at explaining the logic and
methodology in developing the links between the elements. A further weakness is
that the framework does not highlight or emphasize other areas that have
subsequently been identified as being important for strategy. Those areas are:
1. Innovation
2. Knowledge
3. Customer-driven service
4. Quality
The above elements are equally important for any organisation to succeed.

In spite of the above limitations, the 7-S framework provides a way of examining
the organization and what contributes to its success. It is good at capturing the
importance of the links between the various elements. That is why Mc Kinsey
consultants used it as a starting point for their search for more detailed
interconnections.

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Resource Allocation

Resource allocation deals with the procurement and commitment of financial,

physical and human resources to strategic tasks for achievement of organisational
objectives. This involves the process of providing resources to particular business
units, divisions, functions etc for the purpose of implementing strategies. All
organisations have at least five types of resources:

1. Physical Resources
2. Financial Resources
3. Human Resources
4. Technological Resources
5. Intellectual Resources
Broadly, there are three approaches to resource allocation:

Top-Down approach: In this approach, resources are allocated through a

process of segregation down to the operating levels. The Board of
Directors, the Managing Director or members of top management
typically decide the requirements of each subunit and distribute
resources accordingly.

Bottom-up approach: In this approach, resources are distributed through

a process of aggregation from the operating level . The operating level s
work out the requirements of each subunit and the resources are
allocated accordingly.

Strategic budgeting: This approach is a mix of the above two

approaches, and involves an interactive form of decision-making
between different levels of management.
Managing Resource Conflict:

 BCG Matrix
 PLC-based Budgeting
 Zero-based Budgeting (ZBB)
Strategy Implementation – Introduction

To implement its strategy successfully a firm must have an appropriate organisational structure. An
organisational structure is a set of formal tasks and reporting relationships which provide a framework
for control and coordination within the organisation. The visual representation of an organisational
structure is called organisational chart. The purpose of an organizational structure is to coordinate and
integrate the efforts of employees at all levels – corporate, business and functional levels – so that they
work together to achieve the specific set of strategies. Organisational structure is a tool that managers
use to harness resources for getting things done. It is defined as:

1. The set of formal tasks assigned to individuals and departments.

2. Formal reporting relationships, including lines of authority, responsibility, number of hierarchical
levels and span of manager’s control.
3. The design of systems to ensure effective coordination of employees across departments.

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The set of formal tasks and formal relationships provides a framework for vertical control of the
organisation.
There are two different aspects of the organisational structure:
1. Superstructure
2. Infrastructure
1. Superstructure: This is the highly visible part of the organisational structure. This depicts how people
are grouped into different divisions, departments and sections and how they are related to each other.
The superstructure also indicates the principal ways in which the organisational operations are integrated
and coordinated. By showing their levels, it indicates which groups have relatively more strategic
importance.
2. Infrastructure: This is comparatively less visible part of the organisational structure. It is concerned
with issues like delegation of authority, specialization, communication, information systems and
procedures. The infrastructure enables the organisation to engage in a number of disparate activities and
still keep them coordinated.
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Basic Principles of Organisational Structure
There are several important principles of organisation, which need to be understood before building
an organisation’s structure. They are:

1. Hierarchy: Hierarchy defines who reports to whom and the span of control. Span of control is the
number of people reporting to a supervisor. It determines how closely a supervisor can monitor
subordinates. Tall structures have many levels in the hierarchy and a narrow span. Communication
up and down the hierarchy becomes difficult. Flat structures are horizontally dispersed having
fewer levels in the hierarchy. The trend in recent years has been towards flat structures allowing for
wider spans of control as a way to facilitate better communication and co-ordination.

2. Chain of Command: The chain of command is an unbroken line of authority that links all persons
in an organisation and shows who reports to whom. It has two underlying principles. Unity of
command means that each employee is held accountable to only one supervisor. The scalar principle
means a clearly defined line of authority in the organisation. Authority and responsibility for
different tasks should be distinct. All persons in the organisation should know to whom they report
as well as the successive management levels all the way to the top.

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3. Specialization: Specialization, sometimes called division of labour, is the degree
to which organisational tasks are subdivided into separate jobs. Work can be
performed more efficiently if employees are allowed to specialize. This is because an
employee in each department performs only the tasks relevant to his specialized
function. Despite the apparent advantages of specialization, many organisations are
moving away from this principle.
With too much specialization, employees are isolated performing only a single,
boring job. Many companies are, therefore, enlarging jobs to provide greater
challenges or assigning tasks to teams so that employees can rotate among several
jobs performed by the team.
4. Authority, Responsibility and Delegation: Authority is the formal and legitimate
right of a manager to make decisions, issue orders, allocate resources and command
obedience. Responsibility is the duty to perform the task or activity an employee has
been assigned. Accountability means that the people with authority and
responsibility are subject to reporting and justifying task outcomes to those above
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5. Centralization and Decentralization: Centralization and decentralization refer to the
level at which decisions are made. Centralization means that decision-making is done at
the top levels of the organisation. Decentralization means that decision making is
pushed down to the lower levels in the organisation. Centralization helps in better
coordination, but too much centralization results in slow response and demotivates
people at lower levels. Decentralization relieves the burden on top managers, makes
greater use of worker’s skills, ensures decision making by well-informed people and
permits rapid response to external changes. But it does not mean that every organisation
should decentralize. Managers should diagnose the organisational situation and select
the decision-making level.
6. Formalization: Formalization is the extent to which written documentation is used to
direct and control employees. Written documentation includes rules, regulations,
policies, procedures, job descriptions etc. They are inexpensive ways to coordinate
activities. These documents complement the organisational structure by providing
descriptions of tasks, responsibilities and authority. The use of rules and regulations is a
part of bureaucratic model of organisation. 32
7. Departmentalization: Another fundamental characteristic of organisational
structure is departmentalization, which means grouping positions into departments
and departments into the total organisation.

What is organisational design?

The process of designing an organisation’s structure to match with its situation is
called organisational design. The best design for an organisation is determined by
many aspects of its situation, viz. the size, technology, environment and strategy.
Managers make choices about how to use the chain of command to group people
together to perform their work.
The functional, divisional and matrix structures are traditional approaches that rely
on the chain of command to define departmental groupings and reporting
relationships along the hierarchy. Newer approaches such as teams, networks and
virtual organisations have emerged to meet changing organisational needs in an
increasingly global, knowledge based business environment.

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Types of Organisational Structures
There are seven basic types of organisational structures:
1. Simple structure
2. Functional structure
3. Divisional structure
4. SBU structure
5. Matrix structure
6. Network structure
7. Virtual structure
Let us understand each of them briefly.

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1. Simple Structure: In this structure, the owner-manager controls all activities and
makes all the decisions. This structure may be appropriate for small and young
organisations. Coordination of tasks is done through direct supervision. There is little
specialization of tasks, few rules and regulations and communication is informal.

Example: Small businesses like mom and pop stores, small restaurants etc have a
simple organisation structure.

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2. Functional Structure: Functional structures are grouped based on major functions
performed. Each function is led by a functional specialist. Functional structures are
formed in organisations in which there is a single or closely related products or
services.

Example: Small business with one product line could start making the components it
requires for production of i ts products instead of procuring it from an external
organization. It is not only beneficial for organization but also for employees'
faiths.
3. Divisional Structure: Divisional structures are used by diversified organisations. In
a divisional structure, divisions are created as self-contained units with separate
functional departments for each division. A division may be organised around
geographic area, products, customers etc. The head office determines corporate
strategy, allocates resources among divisions and appoints and rewards the heads of
these divisions. Each division is responsible for product, market and financial
objectives for the division as well as their division’s contribution to overall corporate
performance.

Example: Divisions can be categorized from different points of view. One might make
distinctions on a geographical basis (a US division and an EU division, for example) or
on product/service basis (different products for different customers: households or
companies). In another example, an automobile company with a divisional structure
might have one division for SUVs, another division for subcompact cars, and another
division for sedans.
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4. Matrix Structure: The matrix structure is, in effect, a combination of functional
and divisional structures. In this structure, there are functional managers and
product or project managers. Employees report to one functional manager and to
one or more project managers. For example, a product group wants to develop a
new product. For this project it obtains personnel from functional departments like
Finance, Production, Marketing, HR, engineering etc. These personnel work under
the product manager for the duration of the project. Thus, they are responsible for
two managers – the product manager and the manager of their functional area.
While functional heads have vertical control over the functional managers, the
product or project heads have horizontal control over them. Thus, matrix structure
provides a dual reporting. The dual lines of authority makes the matrix structure
unique. The matrix structure has been used successfully by companies such as IBM,
Unilever, Ford Motor Company etc.

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Example: Starbucks is one of the numerous large organizations that successfully developed the
matrix structure supporting their focused strategy. Its design combines functional and
product based divisions, with employees reporting to two heads. Creating a team spirit,
the company empowers employees to make their own decisions and train them to
develop both hard and soft skills. That makes Starbucks one of the best at customer
service.

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5. Network Structure: A network organisation outsources or subcontracts many of
its major functions to separate companies and coordinates their activities from a
small headquarters. Rather than being housed under one roof, activities like design,
manufacturing, marketing, distribution etc. are outsourced to separate organisations
that are connected electronically to the central office.

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Example: Athletic shoe companies like Nike and Reebok have outsourced
manufacturing of their shoes to countries such as China and Indonesia, where labour
costs are low. What Nike or Reebok does is the design and marketing of shoes.
Networked computer systems and the Internet enabl e the organisati on to exchange
data and information. The organisation may be viewed as a hub surrounded by a
network of outside specialists.
As may be seen from the above, the core organisation is only a shell with a small
headquarters acting as a broker connected to supplier, design, manufacturing etc.
organisations.

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6. Virtual Organisation: This is an extension of the network structure. In this
approach, independent organisations form temporary alliances to exploit specific
opportunities, then disband when their objectives are met. The term virtual means
“being in effect but not actually so”. The virtual organisations consist of a network of
independent companies – suppliers, customers or even competitors – linked together
to share skills, costs, markets and rewards. The members of a virtual organisation
pool and share the knowledge and expertise of each other.

Creating Agile Virtual Organisation: New ways to manage change and to compete in a
rapidly changing business world are emerging under the concept of the agile
enterprise. Agile organisations can be almost any size or type, but what distinguishes
them from their lumbering traditional business counterparts is the ability to read and
to react quickly. They can also be virtual, meaning they can reconfigure themselves
quickly and temporarily in response to a challenge, which gives them agility, but then
dissolve or transmute themselves into something else.

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Virtual organisations have been existing throughout history, from the whaling
companies of the 19th century through the film studios of the 20th. The virtual
organisations have few full-time employees or usually temporarily hire outside
specialists to complete a specific project, such as a new software application. These
people do not become a part of the organisation, but join together as a separate entity
for a specific purpose. Sometimes companies use a virtual approach to harness the
talents and energies of the best people for a particular job, rather than trying to
develop those capabilities in-house.
Now that serious management tools are beginning to appear, the agile virtual
enterprise is no longer just a theoretical possibility. When an organisation uses a
virtual approach, the virtual group typically has full authority to make decisions and
take actions within certain predetermined boundaries and goals. Most virtual
organisations use electronic media for sharing of information and data. Some
organisations have redesigned offices to provide temporary space for virtual workers
to meet or work on-site.

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Advantages and Disadvantages:
Advantages
(a) It can draw on expertise worldwide.
(b) It is highly flexible and responsive.
(c) It reduces overhead costs.
Disadvantages
(a) Lack of control because the boundaries of a virtual organisation are weak and
ambiguous.
(b) Virtual teams place new demands on managers, who have to work with new
people, new ideas and new problems.
(c) Virtual organisation poses communication difficulties, and managers may lose
motivation.

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Structures for Strategies
To understand the logic behind this approach to the development of organisational structures,
it is helpful to look at the historical background. As already mentioned, prior to the early 1960s,
the US strategist Alfred Chandler studied how some leading US corporations had developed
their strategies in the first half of the twentieth century. He then drew some major conclusions
from this empirical evidence, the foremost one being that the organisation first needed to
develop its strategy and, after this, to devise the organisation structure that delivered that
strategy. Chandler drew a clear distinction between devising a strategy and implementing it.
He defined strategy as:
“The determination of the basic long-term goals and objective of an enterprise, and the
adoption of courses of action and the allocation of resources necessary for carrying out these
goals”.

The task of developing the strategy took place at the corporate and business levels of the
organisation. The job of implementing it then fell to the various functional areas. Chandler’s
research suggested that, once a strategy had been developed, it was necessary to consider the
structure needed to carry it out. A new strategy might require extra resources, or new
personnel or equipment which would alter the work of the enterprise.

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Changes in Business Environment and Social Values

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Strategy and Structure are Interlinked

According to modern strategists, strategy and structure are interlinked. It may not be optimal for an
organisation to develop its structure after it has developed its strategy. The relationship is more complex in
two respects:

1. Strategy and the structure associated with it may need to develop at the same time in an experimental
way : As the strategy develops, so does the structure. The organisation learns to adapt to its changing
environment and to its changing resources, especially if such change is radical.

2. If the strategy process is emergent, then learning and experimentation involved may need a more open
and less formal organisation structure

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Organizational Change

Organizational change takes place in two broad dimensions:

1. Structural changes
2. Behavioral changes to absorb impact of changes.

Restructuring can be done either as ..,

Reorganization
Reengineering
Delayering
Flatter Structures
Organizational Change

• Reorganization/Restructuring: is changing org. structure matching

to the change in external environment
• Reengineering: Fundamental Rethinking & Radical Redesigning of
business process in areas like product quality, service, speed etc.
• DeLayering: Reducing the number of layers in hierarchy for better
& improved control
• Flatter Structures: It is the result due to delayering.
Matching Structures to Strategies

• Change in structure is dependent on change in external environment.

• Structural changes also requires to compensate the impact of how people will
react to the changed situations & how to manage the new relationships.
Structure for Strategy

• For Example @ Corporate Level Strategy:

1) A company has implemented a STABILITY strategy & has a simple functional structure
working.
2) Now the company has planned to implement Concentric Diversification .
3) In such case the company should move from a Functional Structure to a Divisional
Structure
4) As products will increase need to have a better coordination, company can create few
departments & for the related product line
5) Personnel & Finance departments can be retained as centralized department. 
For Example @ Business Level Strategy:

1) A company is pursuing a low cost leadership strategy in mature industry, can work
well with Functional Structure.
2) Now the company has planned to implement Differentiation Strategy in a Turbulent
environment, a divisional structure could serve better .
3) In such case the company can cater to changing customer needs more effectively.
Strategic Evaluation and
Control
Introduction
Strategic evaluation and control is the final phase in the process of strategic
management. Its basic purpose is to ensure that the strategy is achieving the
goals and objectives set for the strategy. It compares performance with the
desired results and provides the feedback necessary for management to take
corrective action.
According to Fred R. David, strategy evaluation includes three basic activities (1)
examining the underlying bases of a firm’s strategy, (2) comparing expected
results with actual results, and (3) taking corrective action to ensure that
performance conforms to plans.
Strategic evaluation generally operates at two levels – strategic and operational
level. At the strategic level, managers try to examine the consistency of strategy
with environment. At the operational level, the focus is on finding how a given
strategy is effectively pursued by the organisation. For this purpose, different
control systems are used both at strategic and operational levels.
 Nature of Strategic Evaluation and Control
Types of General Control Systems
Basically, there are three types of general control systems:
1. Output control (i.e. control on actual performance results)
2. Behaviour control (i.e. control on activities that generate the performance)
3. Input control (i.e. control on resources that are used in performance)

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Strategic Control
Strategic control is a type of “steering control”. We have to track the strategy as it is being
implemented, detect any problems or changes in the predictions made, and make necessary
adjustments. This is especially important because the implementation process itself takes a long time
before we can achieve the results. Strategic controls are, therefore, necessary to steer the firm through
these events.
Types of Strategic Control
There are four types of strategic controls:
1. Premise control
2. Strategic surveillance
3. Special alert control
4. Implementation control

Operational Control
Operational control provides post-action evaluation and control over short periods.
They involve systematic evaluation of performance against predetermined objectives. The major
differences between strategic control and operational control are summarised in table.

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Techniques of Strategic Control
• Management Information systems
• Benchmarking
• Balanced scorecard
• Key factor rating
• Management by Objectives (MBO)
• Network techniques

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To be effective, operational control systems, involve four steps
common to all post-action controls:
1. Set standards of performance
2. Measure actual performance
3. Identify deviations from standards set
4. Initiate corrective action
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Thank you