MANAGING IMPLEMENTATION RISK (CHAPTER 7) || with 100% Errorless Answers.
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Proactive vs Reactive controls what are they? correct answers • Proactive controls are used to timeously identify any potential threats to the implementation process. The purpose of proactive control is to identify threats, through environmental scanning, to the implementation process at an early...
MANAGING IMPLEMENTATION RISK (CHAPTER 7) || with 100% Errorless Answers. Proactive vs Reactive controls what are they? correct answers • Proactive controls are used to timeously identify any potential threats to the implementation process. The purpose of proactive control is to identify threats, through environmental scanning, to the implementation process at an early stage. • Reactive controls are mainly used to track the progress of implementation, The Strategic Control Process. The purpose of reactive control is to ensure that the implementation process remains on track and to take corrective actions.
THE IMPORTANCE OF STRATEGIC CONTROL Strategic control is necessary in any organisation for the following reasons: correct answers 1. Provides a coordinating mechanism
2. Ensures that resources are deployed in such a way that an organisation attains its overall objectives
3. Enables management to cope with environmental change and uncertainty
4. Ensures that costly mistakes are avoided
5. Ensures a balance between effectiveness and efficiency.
Organisational effectiveness is 'doing the right things'. This implies that the organisation has a strategic perspective which is:
a. Right for the present
b. Developed in line with future needs and trends
c. Linked to a clear vision, mission and overall purpose
Organisational efficiency is the sound and optimal management of organisational resources to maximise the returns from it. Organisational efficiency is rather complex and takes place mainly at the functional level. These seven measures are discussed below:
1. Marketing efficiency
2. Operations efficiency
3. Supply chain efficiency
4. Research and development efficiency
5. Information management efficiency
6. Financial efficiency
7. Human resources efficiency
Strategic control can be broadly classified into two categories, namely backward looking and forward looking. correct answers 1. Backward-looking strategic control is broadly the same as the operational control process and consists of setting performance standards, measuring performance and addressing deviations. The strategic control process,
organisational maturity model and the balanced scorecard are all examples. 2. Forward looking, on the other hand, due to the complexity and long time frames of strategic management, control cannot be solely backward looking. It also needs to consider key events in the environment and how that will influence the strategic direction, strategic plans and implementation efforts of the organisation going forward.
What is Strategic control and why is it important? correct answers Strategic control is necessary in any organisation for the following reasons:
1. Provides a coordinating mechanism - links the strategic planning, implementation and control processes of an organisation.
2. Ensures that the organisation's resources are deployed in such a way that it attains its overall objectives and that resources match key success factors and competitive advantage.
3. It enables management to cope with environmental change and uncertainty - A properly designed strategic control system can help managers anticipate, monitor and respond to changing
circumstances. 4. Complex organisations need strategic control measures to ensure that costly mistakes are avoided. Small mistakes and errors do not often seriously damage the financial health of an organisation.
5. It ensures a balance between organisational effectiveness and efficiency.
Four types of control systems that managers use to control business strategy. correct answers 1. Belief systems - Belief systems encourage and guide the necessary search for new opportunities and innovations. They are the set of organisational definitions that senior managers communicate
formally and reinforce to provide a set of basic values and beliefs, purpose and direction. The vision statement and mission statement reinforce the belief system.
Belief systems that communicate core values such as mission statements, credos and vision statements. 2. Boundary systems - that define the limits of freedom, such as codes of conduct and ethics statements. They set boundaries on the search for new opportunities by defining and limiting the acceptable domain for opportunity-seeking behaviour.
3. Diagnostic control systems - diagnostic control systems are designed to take up as little management time as possible. A diagnostic control system measures the intended strategy (i.e. it is aligned with the strategic management process)
4. Interactive control systems - that provide strategic feedback and vehicles to update and redirect strategy such as competitive analysis and market feedback reports. Interactive control systems are aligned more with emergent strategy and accordingly contribute to the formation of strategy.
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