Strategy Implementation, Evaluation and Control
Implementation, control and the scorecard
Strategy fails when structure, culture, rewards and resources do not fit. Chandler's dictum is that structure follows strategy; the main forms are functional, divisional and matrix, each with trade-offs in coordination and accountability. The 7S framework covers strategy, structure, systems, staff, skills, style and shared values. Change is managed through a staged approach: urgency, coalition, vision, communication, short wins and consolidation, not a single announcement.
Control compares actual performance with standards. Feedforward control prevents problems before input (supplier screening, budgets); concurrent control monitors during the process (in-process inspection); feedback control corrects after output (variance reports, warranty analysis). The balanced scorecard balances financial, customer, internal process, and learning and growth perspectives, including leading and lagging indicators.
Worked example
Profit budget is 10,00,000; actual 8,50,000. Variance is 1,50,000 adverse. If volume was 10,000 units budgeted against 9,000 actual at a standard contribution of 100, the volume variance is 1,000 x 100 = 1,00,000 adverse; the remaining 50,000 adverse is price, cost or mix. Diagnosing the split gives a corrective action, volume recovery or cost control, rather than a vague instruction to improve performance.
Traps
Do not confuse feedback with feedforward; inspection after production is feedback. The balanced scorecard is not a financial dashboard alone. Strategy evaluation is broader than monthly variance reporting; it questions whether the strategy still fits the environment. Structure must fit strategy, not the reverse, though existing structure can constrain choice.