Strategic Planning and Control: Achieving Business Success

The Relationship Between Planning and Control

Planning and control are two sides of the same coin. Planning refers to determining the actions necessary to put a strategy into practice, including the resources required for execution. It involves defining who, when, how, and by what means the strategy will be implemented. Control refers to the activities necessary to verify that actions are taken according to the plan and are delivering the expected results.

Execution is a combination of activities and their resulting outcomes. Because activities and results are planned and subsequently controlled, these two functions are inseparable. The control of the strategic process is a feedback mechanism designed to ensure that:

• The strategy is working as planned.
• Targets are being achieved.

Types of Strategic Control

• Implementation Control: Applied during the rollout of a new strategy to monitor the initial application of strategic changes.
• Strategic Control: A permanent control process used to ensure that the strategy remains valid over time.

Managing Uncertainty Through Control

Control is a feedback process; it does not imply a lack of trust. Instead, control is necessary to successfully manage uncertainty. Uncertainty arises during strategic change because the adequacy of a new strategy is expected but not yet proven. Furthermore, uncertainty persists throughout the life of a strategy as the external environment changes. Control secures execution and achievement.

Implementation Control During Rollout

During the initial rollout, we must ask: Are we doing what we planned? Are we achieving the planned rollout targets?

Project Governance Mechanisms

The governance of a project includes specific mechanisms for information and control:

• Project Steering Committee: Provides overall guidance and strategic direction, promotes project success, manages risks and constraints, and represents senior management.
• Project Sponsor: Responsible for ensuring business objectives are achieved, providing support to the Project Manager, and ensuring scope is managed effectively. Typically a member of senior management.
• Project Manager: Responsible for the overall success of the project and developing a detailed project plan in accordance with best practices.
• Project Team: A group of experts from different functions critical to project success. They are responsible for delivering all project tasks and typically report to both a functional manager and the project manager.