Page 262 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes 2. Milestone Reviews: Milestones are critical events that should be reached during strategy
implementation. These milestones may be fixed on the basis of.
(a) Critical events

(b) Major resource allocations
(c) Time frames etc.

Premise Control

Special Alert Control
Implementation Control

Strategy Formulation Strategy Implementation
Time 1 Time 2 Time 3
Network controls like PERT/CPM for project implementation are examples of milestone reviews.
After doing a milestone review, managers often undertake a full scale reassessment of the
strategy to decide whether to continue or refocus the firm’s strategy.

Implementation control is also done through operational control systems like budgets, schedules,
key success factors etc.
The major characteristics of the above four types of strategic control are summarised in
figure.
Strategic controls are, thus, designed to systematically and continuously monitor the
implementation of the strategy over long periods to decide whether the strategic direction
should be changed in the light of unfolding events. However, for post-action evaluation and
control over short periods, the firm needs operational controls.

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