Managing and Controlling Strategy | My Assignment Tutor

190.211 – Aviation Strategic Management 1Managing and ControllingStrategy190.211-Strategic Aviation Management 1The Control Process1. Goal Setting/Performance Standards – Whatdo we want to achieve?2. Performance Measurement – What ishappening?3. Performance Diagnosis – Why is ithappening4. Corrective Action – What should we doabout it?190.211-Strategic Aviation Management 2Planning and Control• Planning and control are integrated processes• Planning should include the establishment of asystem for the feedback of results• Feedback reflects the airline’s performance inreaching its objectives through implementationof the strategic plan.• The strategic decision makers review the airlinesperformance and as a result, may changestrategies, objectives, timeframes, budgets etc.190.211-Strategic Aviation Management 31 2 3190.211 – Aviation Strategic Management 2• Performance standards are often expressed ina budget or a series of KPIs• Each level, department, SBU, etc are heldaccountable to achieve their budget/KPIs• Any “substantial” deviation is investigated• What is “substantial”?• What do you do if it is substantial?– Rewards and penalties– Reallocate resources– Change the plan or strategy190.211-Strategic Aviation Management 4Types of Control1. Annual Plan Control– Are the planned results being achieved?2. Profitability Control– Where is the airline making and losing money?3. Efficiency Control– Where and how can we improve spendingefficiency?4. Strategic control– Is the company pursuing it’s best opportunities interms of markets, services, routes, assets etc?190.211-Strategic Aviation Management 5What Aspects of PerformanceShould an Airline Measure?• Revenue, costs and profits• Customers – numbers, satisfaction, churnand profitability• Market – position, share, growth,segments and trends• Efficiency – promotion, service delivery,assets and systems• Employees – morale, turnover, output,accuracy190.211-Strategic Aviation Management 64 5 6190.211 – Aviation Strategic Management 3• Planning assumptions• Operational performance – planes, routes,load factor, on-time performance, baggagehandling etc• Suppliers – delivery, quality• Competitors – competitive advantage, relativeperformance, market share etc190.211-Strategic Aviation Management 7Diagnosis and Corrective Action• Investigate, analyse and interpret results.• Understand cause and effect, and theimplications of the results.• Identify revised, and new actions andstrategies that will achieve the goals.• Implement• Repeat the entire process190.211-Strategic Aviation Management 8Tracking Through Information Systems• Appropriate Information Systems (IT) in place enablethe management to track strategic and operationalperformance• Different departments and managers requiredifferent information for decision-making• Every aspect of strategic management relies on thequality information• Develop a user-friendly and simple system190.211-Strategic Aviation Management 97 8 9190.211 – Aviation Strategic Management 4190.211-Strategic Aviation Management 10Strategic leadership : The Key BehavioursHas vision• What good looks like• Strategic directionQuestions the Current State• Continuous improvement(e.g., benchmarking)• Different ways of doing thingsDelegate and Empowers• Framework for decisions• Gives clear accountabilitiesMotivates others• Respect and honesty• Satisfying individual needsHas a strong passion to win• Belief in the business• Beyond reach – within reachStrategic LeadershipHow strategic leadership helps strategy implementation:• Preparation – Ensures everyone understands changes,and that they support the decisions• Leadership – Has vision and foresight, attending to theviews of diverse groups of stakeholders. Ensures thepeople in the airline follow his lead.• Change – Ensures the changes will not create thevolatility or hostility inside the organisation, and thatthey are implemented• Partnership – Ensures collaboration both inside andoutside the airline• Recruitment – Employs the right people190.211-Strategic Aviation Management 11Video : The Competitive Strategy of DiscountAirlinesVideo : Qatar Airways CEO on “Subsidies”190.211-Strategic Aviation Management 12101112

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