Strategic Process Control

Although the control system must be made in accordance with the specific situation, but the control system to follow the same basic process, usually following the six steps as follows:
• Determining what is manageable
• Setting standards
• Measure performance
• Comparing the performance standards
• Determining the reasons for irregularities
• Conducting action correction
Feedback from the evaluation of effectiveness of the strategy likely affect the other phase in the process of strategic management. The control system is designed both will include feedback from the control of information to individuals or groups that formed the activity restrained. Feedback system is simple to measure the output of the process and make inputs from the corrective action to obtain the desired output. The consequences of the use of feedback control system is that the sustainability performance is not satisfactory to the errors found. One technique to reduce the problems associated with the feedback control is the bait to the front. Bait system to monitor the inputs to the front in a process to determine whether entries in accordance with the plan, if not the inputs or process may be changed in order to obtain the desired results.


The second step in the process of building control is standard. Standard management is a target against which performance will be compared. Standards are the criteria that allow managers to evaluate past actions, current and future. Standard is measured in various ways, including forms of physical, quantitative and qualitative. Five aspects of performance can be managed and manageable, the quantity, quality, time, cost and behavior. Each aspect of control, may require additional grouping. General Electric to use eight types of standards, namely the profitability of the standard, the standard market position, productivity standards, product standards of leadership, standards development of human resources, employee attitudes standards and standards of public accountability.
The third step is to measure performance. Actual performance should be compared with the standard. In some places, this step is required only for the possibility of visual observation. In other situations, determination is needed carefully. Many kinds of measures to control the functions based on some form of a historical standards. For example, the standard is based on data derived from the PIMS (profit impact of market strategy), the information displayed is generally available, for example, ratings of the product / service quality, innovation rates, and the relative market shares standings. PIMS developed by Sidney Shoeffler from Harvard University in the 1960s. The size of the traditional performance of the other is the Return on Investment (ROI), which is not distinguished by a lot of Return on Assets (ROA), the results for between net income before tax in total assets. The other is the size of the traditional Return on Equity (ROE) and Earning per Share (EPS). Methods of measuring the performance of the corporation and the Division is the popular Economic Value Added (EVA) is the difference between the value of a business before and after diimplentasikan strategy. EVA is ultimately replace the ROI. The value will come from EVA is the MVA or Market Value Added, which is the difference between the market value of the company and kotribusi capital from shareholders and creditor. Companies such as General Electric, Microsoft, Intel, Coca-Cola mepunyai MVA high. Standard management practices based on strategic competitive benchmarking (presumably compete stilt), a process of measuring the performance of the company compared the performance of the best in the industry. Benchmarking company that pioneered in the United States is Xerox. Most admired companies that do benchmarking against the world's products and services that they generate.
The fourth step is to compare actual performance with the standard. If the previous steps have been running well, then compare with the standards of performance will be become easier. Although, sometimes comparing performance with standards, it is difficult to make comparisons that are needed, for example, the default behavior. Some deviations from the standard can be justified, because environmental conditions change and other reasons.
The fifth step of the process involves the excavation of the "why menyipang performance of the standard?". Because of irregularities can move towards the target of the selected organizations. Specifically, organizations need to search for irregularities that come from both internal and external changes in control of the organization. In general guidelines to help as can be seen as follows:
• What is the standard in accordance with the strategy and goals statement?
• Are the targets and strategies are still appropriate in the current environmental situation?
• What is the structure of the organization, leadership, skills of staff and system in accordance with the implementation of the strategy is successful?
• Are the activities conducted in accordance with the standards of achievement?
Point causes, both internal and external have different implications for various tidakan correction.
The next step in the process of determining the need for correction action. The manager can choose from three factors:
• Not doing anything
• Implement standard revision
• Conducting the actual performance of the correction
Do nothing can be done if a convincing performance in accordance with the standards. When the standard is not appropriate, then the manager must carefully assess the reasons why and take action correction. Furthermore, the need to check the standards periodically to ensure that the standards associated with size and performance are still relevant for the future. Finally, managers must decide action to correct the performance, when the irregularities occurred. Correction action depends on the discovery of irregularities and the ability to take important tidakan needed. Often cases of irregularities must be clear before the correction action will be taken. Because the deviations from the target range that is not realistic to the strategy that wrong.