Strategic Control

Definition

Strategic control refers to the process of monitoring and evaluating the execution of strategies to ensure that organizational goals are being met. It involves comparing actual performance with planned objectives and making necessary adjustments to strategies in response to internal and external changes. This ongoing assessment helps organizations stay aligned with their strategic goals, ensuring that they can adapt effectively to new challenges or opportunities.

5 Must Know Facts For Your Next Test

1. Strategic control is critical for identifying discrepancies between expected and actual performance, allowing organizations to pivot when needed.
2. Effective strategic control relies on the use of performance metrics to assess whether the strategic goals are being achieved.
3. The process of strategic control can involve both formal reviews, like quarterly assessments, and informal methods, like ongoing discussions among team members.
4. Strategic control helps organizations remain agile by allowing them to adapt their strategies based on changing market conditions or competitor actions.
5. A strong feedback loop is essential in strategic control as it ensures that lessons learned from performance evaluations are integrated into future strategic planning.

Review Questions

• How does strategic control enhance the ability of an organization to adapt its strategies in response to changing market conditions?
  • Strategic control enhances an organization's adaptability by providing a systematic approach to monitor performance against set objectives. By regularly evaluating outcomes and comparing them with planned goals, organizations can quickly identify areas where adjustments are necessary. This proactive approach allows organizations to pivot their strategies effectively in response to market shifts, ensuring they remain competitive and aligned with their overall mission.
• In what ways do performance metrics play a role in the effectiveness of strategic control processes?
  • Performance metrics are essential for effective strategic control as they provide concrete data that organizations can use to measure progress towards their strategic goals. By analyzing these metrics, organizations can pinpoint discrepancies between expected and actual performance. This analysis informs decision-making processes, allowing leaders to make necessary adjustments to strategies and ensure that resources are allocated efficiently to meet objectives.
• Evaluate the impact of a strong feedback loop on strategic control and its long-term implications for organizational success.
  • A strong feedback loop significantly impacts strategic control by creating a dynamic system where insights from past performance directly influence future strategy. This continuous learning process helps organizations refine their strategies based on real-world outcomes, fostering a culture of adaptability and responsiveness. In the long run, effective feedback mechanisms contribute to sustained organizational success by ensuring that strategies evolve in alignment with both internal capabilities and external market realities.

Related terms

Performance Metrics: Quantifiable measures used to evaluate the success of an organization in meeting its objectives.

Strategic Planning: The process of defining an organization's strategy, direction, and making decisions on allocating resources to pursue this strategy.

Feedback Loop: A system that uses the output from a process as input for future operations, helping to refine strategies based on performance outcomes.