Strategy monitoring and control are critical components of the strategic management process. They ensure that the strategic plan is being implemented effectively and that the organization is on track to achieve its objectives. This section will cover the key concepts, tools, and techniques used in strategy monitoring and control.

• Monitoring: The process of continuously observing the implementation of the strategy to ensure that it is being executed as planned.
• Control: The process of taking corrective actions when deviations from the plan are detected.

• Ensures alignment with strategic objectives.
• Identifies deviations and allows for timely corrective actions.
• Enhances accountability and performance.
• Provides data for future strategic planning.

KPIs are measurable values that indicate how effectively an organization is achieving its strategic objectives. They provide a clear picture of performance and help in monitoring progress.

Examples of KPIs:

• Revenue growth rate
• Customer satisfaction score
• Market share
• Employee turnover rate

The Balanced Scorecard is a strategic planning and management system that organizations use to:

• Communicate what they are trying to accomplish.
• Align the day-to-day work with strategy.
• Prioritize projects, products, and services.
• Measure and monitor progress towards strategic targets.

Balanced Scorecard Perspectives:

• Financial
• Customer
• Internal Processes
• Learning and Growth

Performance dashboards provide a visual representation of KPIs and other performance metrics. They help managers quickly understand the current status and trends.

Benchmarking involves comparing the organization's performance with that of other organizations or industry standards. It helps in identifying areas for improvement.

MBO is a performance management approach where managers and employees work together to set, monitor, and achieve specific objectives.

Let's consider a technology company that has set a strategic objective to increase its market share by 10% over the next year. The company can use the following tools and techniques to monitor and control its strategy:

1. KPIs:

   • Market share percentage
   • Number of new customers acquired
   • Customer retention rate

2. Balanced Scorecard:

   • Financial: Revenue from new customers
   • Customer: Customer satisfaction score
   • Internal Processes: Time to market for new products
   • Learning and Growth: Employee training hours

3. Performance Dashboard:

   • A dashboard displaying real-time data on market share, customer acquisition, and retention rates.

4. Benchmarking:

   • Comparing the company's market share growth with industry leaders.

5. MBO:

   • Setting specific objectives for sales teams to acquire new customers and retain existing ones.

Scenario: You are the strategic manager of a retail company that aims to improve customer satisfaction by 15% over the next year.

Task: Develop a monitoring and control plan using the tools and techniques discussed.

1. Identify KPIs:

   • Customer satisfaction score
   • Number of customer complaints
   • Average response time to customer inquiries

2. Create a Balanced Scorecard:

   • Financial: Increase in revenue from repeat customers
   • Customer: Customer satisfaction score
   • Internal Processes: Time taken to resolve customer complaints
   • Learning and Growth: Training hours for customer service staff

3. Design a Performance Dashboard:

   • Include real-time data on customer satisfaction scores, complaints, and response times.

4. Plan for Benchmarking:

   • Compare customer satisfaction scores with top competitors in the retail industry.

5. Implement MBO:

   • Set specific objectives for customer service teams to reduce response times and improve satisfaction scores.

Solution:

• KPIs: Track the identified KPIs monthly and review them in management meetings.
• Balanced Scorecard: Develop a balanced scorecard and review it quarterly to ensure alignment with strategic objectives.
• Performance Dashboard: Implement a dashboard that updates in real-time and is accessible to all relevant stakeholders.
• Benchmarking: Conduct benchmarking exercises bi-annually to compare performance with competitors.
• MBO: Set clear objectives for customer service teams and review their performance against these objectives monthly.

Strategy monitoring and control are essential for ensuring that an organization stays on track to achieve its strategic objectives. By using tools like KPIs, Balanced Scorecards, Performance Dashboards, Benchmarking, and MBO, organizations can effectively monitor their progress and make necessary adjustments. This proactive approach helps in maintaining alignment with strategic goals and enhances overall performance.