This document discusses strategic control processes, including both quantitative and qualitative methods. Quantitative methods include comparing financial metrics over time, against competitors, and industry averages. Qualitative methods include balanced scorecard approaches, which translate strategic goals into measurable objectives in areas like customers, finances, internal processes, and learning/innovation. The balanced scorecard helps organizations evaluate strategy implementation, communicate strategic direction, and determine success or failure of strategies.

1. Strategy Evaluation and
Control

2. Strategic Control Process
• Quantitative
• Qualitative
In both cases process consists of three
phases – 1. Evaluation Criteria . 2.
Performance Evaluation 3. Feedback

3. Quantitative
• To compare the performance of the
organization over different time periods
• To compare the performance with it’s
competitors in the industry
• To compare the performance against
industry averages

4. Financial Ratios
• ROI
• Return on Equity
• Profit Margin
• Market Share
• Debt to Equity
• EPS
• Sales Growth
• Asset Growth

5. Methods of Control
• DuPont Chart
• Budgets
• Audits

6. Time Related Control
• Critical Path Method
• PERT
• MBO

7. Problems of Control System
• Reporting data validity
• Criteria for measurement in question
• Performance standards may be set with
inherent contradictions
• Over emphasis on short term measures

8. Evaluation of Strategy
• Strategy Formulation
• Strategy Implementation
• Strategy Evaluation

9. Business Portfolio Analysis
• BCG Matrix
• McKinsey Matrix
• Strategic Planning Institute’s Matrix
• Arthur D’Little Company’s Matrix
• Hofer’s Product / Evolution Matrix

10. Qualitative Factors
• Balanced Score Card by Norton and
Kaplan

11. The Basic Performance
Pyramid
What are we in business for?
Mission
Where are we going?
Vision
What do we want to achieve?
Goals/Objectives
How will you achieve your
goals/objectives?
Strategies
What do you need to do
well?
Success Drivers
How will you measure
how well you are
Performance Measures doing?

12. Balanced Scorecard Approach
• The Balanced Scorecard translates an organization’s mission and
strategy into goals and measures, organized into four different
perspectives
» customer
» financial
» internal business process
» innovation and learning

13. Balanced Scorecard Approach (Cont’d)
• The Balanced Scorecard helps an organization to:
– determine progress towards its goals/objectives
– communicate strategic direction
– determine success or failure of its
strategies/initiatives
– define future strategies
– establish benchmarks
– demonstrate value-added

14. Balanced Scorecard Approach (Cont’d)
• The best Balanced Scorecards will tell the story of
the organization’s strategy and cause the overall
performance to be managed such that the stated
mission is accomplished.