Strategic Controls

Steering strategy execution to perform

Strategic controls are the processes used to manage the execution of company strategy. They serve to course-correct against obstacles and steer the company in the desired direction toward achieving future goals.

Strategic controls are fundamental in managing the complexity of executing strategy, including navigating changing market conditions, dealing with unexpected hurdles, pinpointing their origin, unravel cause and effect, and steering efforts in the desired direction.

Common management concerns in strategy execution include the following:

Why is the execution effort not showing up in results?
Is the organization working for or against execution?
Are we using the right approach?
Do we have the right indicators in place?
Where / what is the issue?
By the time we catch up, will the ground have shifted from under our feet?
Is the original strategy still valid?
Do we need to revisit our assumptions?
How frequently?

Strategic controls go a long way to mitigate these concerns.

How We Help

We help clients keep the execution of their strategy on track.

Premise
Control

Implementation
Control

Evaluation of
Organizational
Alignment

We provide three types of strategic control at vital checkpoints of the strategy execution process.

Premise Control

We help clients examine the continued validity of the assumptions fundamental to their strategy, including market growth, competitive dynamics, relative cost position, and more ... learn more

Premise Control

The formulation of strategy is based on assumptions about the environment and the business, e.g. market growth, competitive dynamics, relative cost structure, and so forth. Premise control examines these assumptions to determine whether circumstances have changed, or information is no longer valid. Based on this type of strategic control, management can recognize changes in the premise and take action accordingly.

Implementation Control

We assist clients to determine and achieve results as expected. We analyze tactics and operating initiatives against key performance indicators and financial measures ... learn more

Implementation Control

The key issues about strategy implementation are two: Is the strategy being executed as planned? And, are actual results being produced as expected? Implementation control takes the form of monitoring and performing strategic reviews at specific milestones of the program. We analyze tactics and operating initiatives against key performance indicators and financial measures to determine operating effectiveness and variance from plans. With this information, adjustments and course corrections are performed as necessary.

Evaluation of Organizational Alignment

We help management diagnose the organization to ensure proper alignment to the strategy. Any misalignment signals the need for corrective organizational design ... learn more

Evaluation of Organizational Alignment

The effectiveness of an organization is a measure of its ability to deploy the strategy. With the right organization in place, the strategy takes off. Without it, it grinds to a halt. The evaluation of organizational effectiveness is a strategic control that verifies the degree of alignment between strategy and structure. A reading of misalignment signals the need for corrective organizational design.

The Results You Can Expect

Identification of obstacles to strategy execution
Installation of the right controls
Determination of requirements for success
Corrective action
Controlled strategy execution

The purpose of strategic controls is to track progress toward the fulfillment of the strategy or confirm its continued validity and take corrective action if needed. The objective is to act on time while the strategy execution is taking place, by steering the company toward the intended strategic and operational goals. Where there is strategy or strategy execution, there is the need for strategic control. Without it, a company can be left in the dark about the continued validity of its strategic program or its inability to respond quickly to planning failures. Therefore, its importance cannot be overstated.

CONTROL EFFECTIVENESS

Five questions can help you determine the effectiveness of your company’s strategic controls:

–       How are you monitoring the business environment for unexpected threats?
–       Are the assumptions rooted in your business strategy still valid?
–       Is your organization able to deploy the strategy?
–       Is the strategy being executed as planned?
–       Are actual results being produced as expected?

Any negative answers signal that your strategy may be off course.

SUGGESTIONS

Even the best-laid plans can go off course. Deviations happen all the time due to the many obstacles that can militate against the strategy and its execution. The ability to steer through obstacles is essential to navigating the situation while executing the strategy. Four types of strategic control are available at key checkpoints in the process.

Types of Strategic Control

They provide mechanisms to track and evaluate planning failures to help managers make adjustments, mid-course corrections or radical changes as needed. It is important that these strategic controls are in place and work effectively for the organization to execute the strategy.

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