Operational monitoring and control, also known as operational control, refers to the processes and systems that are used to monitor and control the day-to-day operations of a business. This may include activities such as tracking the production of goods, monitoring inventory levels, and controlling expenses. Operational monitoring and control is focused on the short-term, and is designed to ensure that the business is meeting its immediate operational objectives.
Strategic monitoring and control, also known as strategic control, refers to the processes and systems that are used to monitor and control the long-term direction of a business. This may include activities such as tracking the performance of the business against its strategic goals and objectives, monitoring the competitive landscape, and adjusting the business’s strategy as needed. Strategic monitoring and control is focused on the long-term, and is designed to ensure that the business is meeting its long-term strategic objectives.
There are several key differences between operational and strategic monitoring and control:
- Timeframe: Operational monitoring and control is focused on the short-term, while strategic monitoring and control is focused on the long-term.
- Scope: Operational monitoring and control is focused on the day-to-day operations of the business, while strategic monitoring and control is focused on the overall direction of the business.
- Objectives: Operational monitoring and control is designed to ensure that the business is meeting its immediate operational objectives, while strategic monitoring and control is designed to ensure that the business is meeting its long-term strategic objectives.
- Tools and techniques: Operational monitoring and control may involve the use of tools and techniques such as dashboards, performance metrics, and key performance indicators (KPIs), while strategic monitoring and control may involve the use of tools such as scenario planning and strategic analysis.
Overall, operational and strategic monitoring and control are two distinct but related processes that are used to monitor and control the operations and direction of a business.