26.07.2010
I began my course on Business Strategy and Management Control Systems at GITAM Institute of International Business today. GITAM has combined Business Strategy and Management Control into a single paper, thus recognizing that control is merely the flipside of strategy. Further this would enable the student to appreciate that the best of strategy is of no use if the implementation is faulty. Good implementation depends on the effectiveness of the controls.
I used the metaphor of a stylish Ferrari or a Lamborghini automobile to illustrate my point. Of what use is this sleek and well engineered car if it has no brakes or speedometer. Now, the sporty car is like a well crafted strategy while the brakes and speedometer are control mechanisms. The brakes control speed, while the speedometer assists in monitoring the speed.
But, it is the Geo-positioning System (GPS) that truly illustrates the link between strategy and control. You should have clarity about where you are headed. If the direction is clear the GPS can give you alternative route suggestions. You choose one route based on this information and your own perceptions about traffic density. This is crafting strategy.
Once you start your journey the GPS keeps you informed about how near you are to your destination. When you deviate, it can point out that you are straying and help you get back to the correct route. This kind of control can be achieved in organizations through Enterprise Resource Planning (ERP) solutions.
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