Types of Strategic control
The type of business strategy you pursue is a key to whether or not your company will have long-term growth and success. The challenge, however, is that it’s difficult to assess if the strategy you’ve chosen is the right one or if you need to make adjustments. That process is made easier if you use the four common types of strategic control to analyze the strategy you’ve put in place to determine its effectiveness, and to find areas of strength and weakness. Without strategic control, your company will fail to adapt to any external changes in your industry that require immediate and corrective action.
Testing the Validity of Assumptions
The business strategy you’ve chosen was likely based on some assumptions you made about what you believed would happen several years in the future. Whether those assumptions are about your target audience, your competitors, or product development, premise control lets you test those assumptions to see if they’re still valid. For example, if you own a skateboard company, you may have assumed that your ideal buyers were Millennials, but you may discover that premise was flawed after premise control measures reveal that the fastest-growing skateboard consumers are actually an entire generation younger.
Strategic Surveillance Control
It’s impossible for you to anticipate every external threat that could impact the success of your business, which is why strategic surveillance control lets you identify information sources that monitor these external forces. Examples of these information sources are financial journals, trade magazines, newspapers, economic forums, and industry conferences. These sources are often the first to identify the potential challenges that businesses in your industry will face, and may even offer potential responses to these challenges.
Special Alert Control
At some point in time, your company will go through a rough patch that’s triggered by some kind of unexpected occurrence that impacts your business in a negative way. This could include a sudden crash in the U.S. stock market, a domestic terrorist attack, or even a natural disaster that affects your customers’ buying habits. Special alert control helps your business respond to these events without having to change your entire strategy to deal with this new event. For example, after the September 11, 2001, terrorist attacks in the U.S., many commercial airlines were forced to adopt stricter safety protocols to account for the intense fears that passengers had about flying on a plane.
Implementation Control Measures
As you begin to implement a business strategy, you must use implementation control measures to assess whether or not your plan needs adjustment. Common types of implementation control include setting performance standards, measuring actual performance, analyzing the reasons your staff failed to meet specific performance standards, and developing a plan to correct performance deviations. Implementation control also includes things such as budgets, schedules, and milestones that the company is trying to achieve.