Strategic Evaluation

and Control

Sandeep kumar sah

 Purpose?
 Thepurpose of Strategic Evaluation is to
evaluate the effectiveness of the strategy in
achieving organizational objectives. Thus it is
process of determining the effectiveness of a
given strategy in achieving the organizational
objectives and taking corrective action whenever
required.
Strategic Evaluation operates at two levels:

 StrategicEvaluation, where the concentration is

more on the consistency of the strategy with the
environment.

 Operational Evaluation, where the effort is

directed at the assessing how well the
organization is pursuing a given strategy.
 Requirements of effective Evaluation:

 Control should involve only the minimum amount of information. Too

much information tends to clutter up the control system and creates
confusion.
 Control should monitor only managerial activities and results even if the
evaluation is difficult to perform.
 Long-term and short-term control should be used so that a balanced
approach to evaluation can be adopted.
 Controls should aim at pinpointing exceptions. The 80:20 principle where
20% of the activities result in 80% of achievement needs to emphasized.
 Rewards for meeting or exceeding standards should be emphasized so that
managers are motivated to perform. Unnecessary emphasis on penalties
tends to pressurize the managers to rely on efficiency rather than
effectiveness.
 Barriers in evaluation:

 The limits of control

 Difficulties in measurement
 Resistance to evaluation
 Tendency to rely on short term assessment.
 Relying on efficiency versus effectiveness.
Strategic Control
 Implementation of control

 The implementation of control is aimed at

evaluating whether the plans, programmes and
projects are actually guiding the organisation
towards its predetermined objectives or not.
 Implementation control may be put into practice
through the identification and monitoring of
strategic thrusts.
 Another method of implementation of control is
milestone view.
 The four basic types of
strategic controls:
 Premise control
 Implementation control
 Strategic surveillance
 Special alert control
THANK YOU
Presented By:
Sandeep Kumar Sah