# Strategic Control

## Definition

Strategic control is the process of evaluating strategy as it is formulated and implemented.

It addresses two dual questions:

1. Is the strategy being implemented as planned?

2. Are the results produced those intended?

It identifies problems, changes in premises, and triggers necessary adjustments.

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## Elements of the Control Process

Element	Description
Operationalised objectives	Business goals converted into measurable, controllable standards
Performance monitoring	Mechanism to measure actual system performance
Comparison mechanism	Compares actuals vs. standards; detects deviations; surfaces new insights on standards
Feedback mechanism	Feeds corrective/adaptive information back to set the system back on course

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## Four Types of Strategic Control

### 1. Premise Control

Strategy is built on assumptions (premises) about the environment
Tool for systematic and continuous monitoring to verify validity of those premises
Monitors two factor categories:
Environmental: economic (inflation, interest rates, liquidity), technology, social, legal-regulatory
Industry: competitors, suppliers, substitutes
Not all premises need equal attention — select those likely to change AND severely impact strategy

### 2. Strategic Surveillance

Unfocused and broad monitoring of various information sources
Aims to uncover unanticipated information that could affect organisational strategy
Casts a wide net, unlike the targeted nature of premise control

### 3. Special Alert Control

Triggered by sudden, unexpected events: government change, natural calamities, unexpected competitor merger/acquisition, industrial disaster
Demands an immediate and intense review of strategy
Reactive in nature

### 4. Implementation Control

Assesses need for changes in overall strategy based on unfolding events and incremental results
Not a replacement for operational control — it continuously monitors the basic direction of strategy
Two basic forms:
Monitoring strategic thrusts: Tracks whether the overall strategy is progressing as desired
Milestone reviews: Reassessment at key checkpoints (time/events/major resource allocation); evaluates whether to continue or refocus direction

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## Operational Control vs. Management Control

Dimension	Operational Control	Management Control
Scope	Individual tasks or transactions	Entire dept., division, or organisation
Nature	Narrow, mechanistic	Inclusive, aggregative
Example	Procuring specific inventory items	Inventory management as a whole
Purpose	Compliance with set standards & instructions	Achieving enterprise goals (short & long range)

> Many control systems in organisations are operational and mechanistic in nature.

Worked example

### Example 1

Sanya Private Limited — stagnant automobile company (PYQ Jan 2021, MTP2 May 2022): Planning department performs well but plans cannot be implemented due to improper resource use, undesirable worker tendencies, and non-conformance to norms/standards.

Required: Suggest elements of the control process to overcome the problem.

Answer: The issues (improper resources, undesirable tendencies, non-conformance) all point to weak controls. The company needs to implement all four elements: (1) operationalise objectives into measurable standards; (2) deploy a performance monitoring mechanism; (3) set up a comparison mechanism to detect deviations; (4) establish a feedback loop for corrective action. These together will check improper resource use and ensure result-oriented implementation.

### Example 2

Strategic control types — definition question (RTP May 2020, Nov 2022, May 2023):

Required: What is strategic control? Briefly explain four types.

Answer framework: Define strategic control (dual questions of implementation + results). Then cover all four types: Premise Control (monitoring environmental/industry assumptions), Strategic Surveillance (unfocused broad monitoring), Special Alert Control (triggered by unexpected events), and Implementation Control (assessing incremental steps; two forms: strategic thrusts + milestone reviews).

### Example 3

Premise control as a monitoring tool (PYQ Nov 2020):

Required: What is strategic control? Explain the statement that 'premise control is a tool for systematic and continuous monitoring of the environment.'

Answer: Define strategic control. Then explain: strategy is built on premises about the complex, turbulent environment. Premise control systematically and continuously monitors these to verify their validity. It covers (i) environmental factors and (ii) industry factors. Since it is neither feasible nor desirable to control all premises equally, managers must select those likely to change and severely impact the organisation.

⚠️ Common exam mistakes

Confusing implementation control with operational control — implementation control monitors whether the overall strategic direction is correct; operational control monitors day-to-day task performance.
Describing strategic surveillance as 'focused' — it is deliberately unfocused (broad scan); only premise control is focused on specific pre-identified assumptions.
Omitting the two forms of implementation control (strategic thrusts + milestone reviews) when the question asks to 'discuss' implementation control.
In the operational vs. management control distinction, failing to give a concrete example to illustrate the difference in scope (e.g., procuring one item vs. managing entire inventory).
Writing that premise control only monitors environmental factors — always include both environmental AND industry factors.

Reference:

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Strategic Control – Types, Process, and Premise Control

Worked example

⚠️ Common exam mistakes