Strategic control is a management process that helps organizations monitor and adjust their overall strategy to ensure that it aligns with their goals and objectives. It focuses on the long-term goals and objectives of an organization, while operational control focuses on the daily management of the organization's operations. Operational control is the daily management of a company's operations, and mid-level managers and supervisors are responsible for implementing strategies and using resources effectively. When operational controls are imposed, they work within the framework established by the strategy. Typical operational control measures include return on investment, net profit, cost, and product quality.
These control measures are essentially summations of more detailed control measures. Financial control involves managing the costs and expenses of a company in order to control them in relation to the budgeted amounts. Corrective measures based on operational controls can have implications for strategic controls when they involve changes in strategy. For example, if managers must request approval for expenses that exceed a budgeted amount, financial control also provides a behavioral control mechanism. At the time of strategy formulation, strategists make assumptions about the company's internal and external environment. Feedback controls allow managers to use information about past performance to align future performance with planned objectives.
The strategic control process consists of several elements, including setting objectives, monitoring progress, and evaluating results. In conclusion, strategic control and operational control are two important processes that organizations use to ensure their success. Strategic control provides direction and focus to the company, while operational control ensures that the company's operations are aligned with that direction and operate as efficiently and effectively as possible.
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