Module V·Article V·~2 min read
Strategic Control and Strategy Renewal
Strategy Execution and Transformation
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Strategy Is a Living Document
A strategy is not developed once every five years and then put into a drawer. The strategic process is a continuous cycle: development → implementation → monitoring → correction.
Systems of Strategic Control
Assumption control — monitoring of the assumptions upon which the strategy was built. If the assumptions do not hold (the market did not grow, the competitor did not react as expected) → revise the strategy.
Implementation control — tracking progress on strategic initiatives. "Are we on schedule? Are we getting the expected results?"
Strategic surveillance — monitoring the environment to identify threats and opportunities not provided for in the initial strategy. "What is happening around us that could change the game?"
Special alert control — response to critical events (crisis, competitor action, regulatory change).
Strategic Reviews
Regular (quarterly/annual) "strategy sessions" of the top management team. Three questions:
- What have we learned in the last period that changes our assumptions?
- Are our initiatives being implemented according to plan?
- Do we need to adjust our direction?
When a Complete Strategy Review Is Needed
Indicators: (1) significant technological change (disruption); (2) change in market structure (new dominant player); (3) regulatory shift; (4) change in consumer behavior; (5) financial results significantly below expectations.
Strategy in the Soviet Tradition of Five-Year Plans
In contrast to Soviet planning, the goal of modern strategic planning is not rigid adherence to the plan, but the creation of the ability to adapt faster than competitors. "Plans are useless, but planning is indispensable" — Eisenhower.
Practical Assignment
A company is implementing a three-year strategy. One year has passed. Use the system of strategic control: (1) Select three key assumptions of the strategy. (2) Check if they have been confirmed. (3) Based on the analysis decide: continue the course, adjust, or completely review the strategy.
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