The controlling process has six steps: set measurable standards, measure actual performance, compare it with standards, analyse significant deviations and their causes (management by exception), take corrective action, and feed the lessons back into planning.
A food delivery company promises orders within 30 minutes. One month, only 82% arrive on time against a target of 95%. Someone has to notice, find out why, and fix it. That is controlling: making sure actual performance matches the plan, and acting when it does not.
Controlling is the last of the management functions, but it loops back to planning. Here are the six steps of the controlling process, using the delivery example throughout. For the different kinds of control, see types of managerial control.
6 Steps in the Controlling Process
1. Set Standards
Define what good performance looks like in measurable terms: output, quality, cost, time. 95% of orders delivered within 30 minutes; complaint rate below 1%.
2. Measure Actual Performance
Collect data on what is actually happening, through reports, systems and observation. App data shows 82% on-time delivery this month.
3. Compare Performance With Standards
Find the gap. 13 percentage points below target.
4. Analyse the Deviation
Find the cause and decide whether it matters. Under management by exception, managers focus only on significant deviations. Most late orders come from three zones where rider numbers fell after a competitor offered higher pay.
5. Take Corrective Action
Fix the cause, not just the symptom. If the standard itself was unrealistic, revise it. Raise peak-hour incentives in the three zones and reassign riders.
6. Feed Back Into Planning
Use what you learned to improve future plans and standards. Add rider supply per zone as a weekly planning metric.
The Process at a Glance
| Step | Question it answers |
|---|---|
| Set standards | What should happen? |
| Measure | What is happening? |
| Compare | Is there a gap? |
| Analyse | Why, and does it matter? |
| Correct | What do we change? |
| Feedback | What do we plan differently next time? |
Related: elements of controlling and features of an effective control system.
