An easy way to control the trajectory of a chip shot is to adjust your left hand at address. To play a high shot, I weaken my left-hand position by setting my thumb straight down the handle at address (top left). I also play the ball a little forward of center in my stance, which helps add loft to the shot.
To hit a low, running chip, I strengthen my left-hand position by moving my thumb to the right side of the handle so I can see almost three knuckles on that hand when I look down at address (bottom left). I play the ball about center. These changes work to deloft the shot. The best part is that you don't have to change your swing to get the desired shot. Put in some practice, and you'll find these adjustments easy to make.
Whatever kind of chip you're hitting, always slide your hips slightly toward the target at address. This little hip bump helps move the low point of the swing forward, which is important for crisp contact. As a result, your distance control will improve.
Excerpted from the DVD "Lessons of a Lifetime II," by Tom Watson.