Searching for viability under changing environmental conditions

Change is the constancy in today's business environment. Steering is an approach and attitude to cope with continuing change. Steering goes beyond control to incorporate the need to evaluate, constantly, goals as well as activities. Steering is a higher level of abstraction and analysis that incorporates control as a subordinate function. The contrast between control and steering is illustrated with a corporate example from the telecommunications industry. The environment of telecommunications demands a steering approach. Previously, a control approach was sufficient under a gradually evolving environment. Managerially, steering calls for a new attitude and approach. New and expanded information is required. Where control information and action focused on deviations from goals, a steering approach questions the goals themselves. Unfortunately, deviations contain little information for steering. In fact, the zero-valued deviation for control may be the best indicator that something is amiss in a steering approach. The relevant steering information is not within the model, but outside-the customer and his needs, the environment, the competition, the technology, et cetera. The steering manager seeks clues outside his own situation. Steering is developed and contrasted with control. Following the telecommunications illustration, an intuitive integration is provided. Finally, a more formal approach gives a theoretical basis for steering, including its requisite information. © 1988.

Duke Scholars

Author Richard M. Burton Fuqua School of Business