Strategic controls are utilized to drive a strategy from inception to the realizations of the results. Moreover, they are used to navigate a business through the changes or problems that arise whether they are financial or action based in nature. There are 4 types of strategic controls that this particular essay will discuss. These include implementation control, strategic surveillance, premise control, and special alert controls. These items help to determine if the organization is moving in the right direction or if the early assumptions that were made hold true.
To begin with, implementation control assesses if the overall strategy should be altered given the incremental actions that implement the overall strategy (Pearce & Robinson, 2011, …show more content…
Why is it used?
Linking an operational and strategic control can be realized by using a balanced scorecard. It affords an organization the ability to clarify their strategies, set them into action, and provides a method for feedback so that the firm understands if they are creating value, leveraging core competences, and satisfying both patrons and shareholders (Pearce & Robinson, 2011, p. 363). The following essay will discuss the balance scorecard and why it is …show more content…
Its purpose and use is to convert an organization 's mission statement and overall business strategy into specific goals, make better decisions, as well as, monitor the organization 's performance (Kaplan & Norton, 2005). In reality, the balance scorecard allows managers within the business to gain a prospective on how customers see the business, what the company must excel at, how the company looks at shareholders, and can the organization continue to create value. The aforementioned elements comprise the four legs of the balance scorecard. The first is the customer leg which measures customer satisfaction and their performance requirements (Yeung, 2014). In today’s business world, making patrons happy is vital and the success of the organization in fulfilling this component can be tracked with items such as market share, customer satisfaction scores, and customer retention rates. The second leg, financial, tracks the organizational performance in terms of financial data (Yeung, 2014). This is the historical way businesses have traced their success as it includes items such as cash flow, profitability, and return on investments. The internal business process leg shows how optimal the business is functioning and if the goods mesh with the firms mission (Yeung, 2014). For instance, this may include items such as
To begin with, implementation control assesses if the overall strategy should be altered given the incremental actions that implement the overall strategy (Pearce & Robinson, 2011, …show more content…
Why is it used?
Linking an operational and strategic control can be realized by using a balanced scorecard. It affords an organization the ability to clarify their strategies, set them into action, and provides a method for feedback so that the firm understands if they are creating value, leveraging core competences, and satisfying both patrons and shareholders (Pearce & Robinson, 2011, p. 363). The following essay will discuss the balance scorecard and why it is …show more content…
Its purpose and use is to convert an organization 's mission statement and overall business strategy into specific goals, make better decisions, as well as, monitor the organization 's performance (Kaplan & Norton, 2005). In reality, the balance scorecard allows managers within the business to gain a prospective on how customers see the business, what the company must excel at, how the company looks at shareholders, and can the organization continue to create value. The aforementioned elements comprise the four legs of the balance scorecard. The first is the customer leg which measures customer satisfaction and their performance requirements (Yeung, 2014). In today’s business world, making patrons happy is vital and the success of the organization in fulfilling this component can be tracked with items such as market share, customer satisfaction scores, and customer retention rates. The second leg, financial, tracks the organizational performance in terms of financial data (Yeung, 2014). This is the historical way businesses have traced their success as it includes items such as cash flow, profitability, and return on investments. The internal business process leg shows how optimal the business is functioning and if the goods mesh with the firms mission (Yeung, 2014). For instance, this may include items such as