4TH STAGE:

EVALUATION,MONITORING
& CONTROL
STRATEGY EVALUATION , MONITORING AND
CONTROL

Implementation must be monitored to be successful. Due to

constantly changing external and internal conditions managers
must continuously review both environments as new strengths,
weaknesses, opportunities and threats may arise. If new
circumstances affect the company, managers must take
corrective actions as soon as possible.
STRATEGY EVALUATION , MONITORING AND
CONTROL
◂ It includes appraising the company’s performance.

◂ All employees are involved in this stage.

◂ This is the stage where the management will decide

whether to modify the strategies because the
environment is very dynamic and constantly changing.
STRATEGY EVALUATION , MONITORING AND
CONTROL

Measuring performance is another important activity in

strategy monitoring.
 Performance has to be measurable and comparable.
 Managers have to compare their actual results with
estimated results and see if they are successful in
achieving their objectives.
 STRATEGY EVALUATION , MONITORING AND
CONTROL

If objectives are not met managers should:

• Change the reward system.
• Introduce new or revise existing policies
Monitoring aspect covers the set of activities needed to
keep an update of the level of implementation and
exewcution of strategy.
The key element in strategy monitoring is to get the relevant
and timely information on changing environment and the
company’s performance and if necessary take corrective
actions.

It comes in the form of obtaining quantifiable parameters from

concerned SBUs or functional group.( Sales figures, market
shares and other financial data)
It a process that helps improve performance and achieve results. Its goal is
to improve current and future management of outputs, outcomes and
impact. Their expertise and independence is of major importance for the
process to be successful.
Use of Charts and Milestones Indicators
Other than figures and textual or qualitative parameters used to indicate
results and business performance, charts and other forms of milestone
indicators are useful tools.
Why is monitoring and evaluation important? At the programme level, the
purpose of monitoring and evaluation is to track implementation and
outputs systematically, and measure the effectiveness of programmes.

It helps determine exactly when a programme is on track and when

changes may be needed.
It can be effective tools to enhance the quality of project planning and
management.

Monitoring helps project managers to understand whether the projects

are progressing in schedule and to ensure that project inputs,
activities, outputs and external factors are proceeding as planned.
Reporting Monitoring activities should take into account the following:
1. Accurate, timely information is essential to guide action.
2. Prompt feedback in implementation activities is needed before
actions are fully completed.
3. Key strategic performance indicators must be tracked as often as
practical using barometers of overall performance.
Strategy Audit
It is also a useful tool for assessing the relevance and success of
strategic management initiatives is the strategy audit attributed to
Wheelen & Hunger (2004)

It is essentially an examination or assessment of the efforts of a

business organization to document the strama agenda
9 METHODS INVOLVING EVALUATION & MONITORING

1. Performance indicators. These measure inputs, processes, outputs, outcomes and

impacts of development interventions. They are used for setting targets and measuring
progress towards them.

2. The logical framework (LogFrame) approach. This identifies objectives and expected
causal links and risks along the results chain. It is a vehicle for engaging partners and can
help improve programme design.

3. Theory-based evaluation. Similar to the LogFrame approach, this provides a deeper

understanding of the workings of a complex intervention. It helps planning and management
by identifying critical success factors.

4. Formal surveys. These are used to collect standardised information from a sample of
people or households. They are useful for understanding actual conditions and changes over
time.
5. Rapid appraisal methods. These are quick, cheap ways of providing
decision-makers with views and feedback from beneficiaries and stakeholders.
They include interviewing, focus groups and field observation.
6. Participatory methods. These allow stakeholders to be actively involved in
decision-making. They generate a sense of ownership of M&E results and
recommendations, and build local capacity.
7. Public expenditure tracking surveys. These trace the flow of public funds
and assess whether resources reach the intended recipients. They can help
diagnose service-delivery problems and improve accountability.
8. Cost-benefit and cost-effectiveness analysis. These tools assess whether
the cost of an activity is justified by its impact. Cost-benefit measures inputs
and outputs in monetary terms, whereas cost-effectiveness looks at outputs in
non-monetary terms.

9. Impact evaluation. This is the systematic identification of the effects of an

intervention on households, institutions and the environment, using some of the
above methods. It can be used to gauge the effectiveness of activities in
reaching the poor.
STRATEGIC CONTROL is in the form of feedback.
 Feedback from the strategy evaluation depicts how effective a particular
strategy is.
 It focuses on the evaluation of the strategies implemented which form a
basis for future action.
 It ensures that the strategic aims or objectives are achieved.
6 stages of Feedback mechanism
1. Find out what to control
2. Come up with control standards
3. Measure Performance
4. Compare actual performance to standards.
5. Determine the reasons for the deviation
6. Take necessary corrections.
 BALANCE SCORECARD
It is a system that measures the organization’s progress in
accomplishing its strategic objectives. The purpose is to align the
company’s vision and strategies to the activities of the organization.
Robert Kaplan and David Norton developed the Balance Scorecard
which incorporates the following:
1. Financial
2. Customers
3. Internal Business Process
4. Learning & Innovation
 BALANCE SCORECARD

1. Financial Perspective includes operating income, ROI and

economic value. It measures the flow of funds in a timely and
consistent manner. Manager analyze the costs and how the funds
can realize customer satisfaction.
2. Customer Perspective – measures customer satisfaction,
customer loyalty.
 BALANCE SCORECARD

3. Business Process Perspective includes procurement of materials,

production and order fulfillment. Managers see to it that the
products/services conform to customer requirements and standards.

4. Learning and Growth Perspective – measures of employee’s

satisfaction and retention. Includes training and improvement since
employees are considered as the main source when it comes to
knowledge. Since technological shift rapidly, employees must
continue to learn.
.