Why do Strategic Control Systems Fail?

Why do Strategic Control Systems Fail?

Strategic control is a term used to describe the process used by organizations to control the formation and execution of strategic plans; it is a specialized form of management control, and differs from other forms of management control (in particular from operational control) in respects of its need to handle uncertainty and ambiguity at various points in the control process.

Strategic control systems fail for the following reasons:

  • Strategic control systems fail,
  • Not understanding the environment or focusing on results.
  • Partial commitment.
  • Not having the right people involved.
  • Writing the plan and putting it on the shelf.
  • Unwillingness or inability to change.
  • Having the wrong people in leadership positions.

Consequences of poor strategic control: The results, of poor strategic control, can be as follows:

  • Will fail to complete the task in time.
  • Can reduce the productivity of the workers.
  • Will fail to meet the market demand and thus lose the market share.
  • May fall in product quality.
  • Increase in employee dissatisfaction.
  • A wrong anticipation of the future.
  • Could not cope up with future threats and gain the profitability from future opportunities.
  • Lose of buying sources and the customer as well, etc.