Strategic Implementation

Unit-4
Barriers to strategic evaluation
Resistance to evaluation: Evaluation might show the shortcomings of the managers,
it may lead to fear of getting exposed hence they may resist evaluation.
Emphasis on short term results: most of the time long term effects of the strategy
are ignored, this is because it is easy to calculate the short term results.
Problem of measurement technique: such problem relates to the objectivity or
validity of measurement techniques used for evaluation.
Problem of bias: at times there can be problem of evaluation and control due to
personal bias of the manager.
Problem of effectiveness and efficiency: efficiency refers to doing things right ,
where as effectiveness refers to doing the right things on time. Both the factors
needs to be looks for the result analysis.
Achieving the objective of producing 20,000 units: u r efficient
Doing this in 4 months
Operational problem: certain factors in the valuation of performance measurement,
reward cycle etc.
Barriers to strategic evaluation
Problem of performance-reward relationship: at times there is no direct relationship
between performance and rewards, in such a situation the manager is not motivated in
evaluation the results.
1000 in 15 days basic salary+10 % commission
1000 in 10 days basic salary+10 % commission

Problem of reporting: there might be times when the managers don’t disclose the
shortcomings, if he himself is responsible for the same.
Problem of strategic targets: faulty collection of data-wrong source of data-poor analysis
of collection of data-faulty judgement on part of manager etc
Lack of periodic review: it is not just important to evaluate , but to do so at right time, and
periodically.
Blame game: internal conflicts and blame games starts between the department because
of evaluation.
Problem in post evaluation action: even after finding the problem area, steps are not taken
to resolve and overcome the same.
Steps in strategic evaluation
Setting standards : sale of 20,000 units in 3 months
Implementation of targets: finance, marketing, HR, R & D Production
Measuring of performance: 3 months : 18,900 unit/ 21,100 units,
20,000 units
Comparing performance with plan: (-1100 units)/ +1100 unit, no
deviation
Finding cause of deviation: poor advertising, poor dealer relation- problem with
quality of product-problem with price of product-problem with distribution of product-
better marketing strategy of competitors etc.
Listing corrective measures:
Selecting and implementing corrective action
Review and follow-up.
Technique Of Evaluation And Control
A. Evaluation technique for strategic control: strategic
control is undertaken to find out whether or not the
Strategic control
strategy is implemented properly.

Organization Strategic Organization

Strategic
s in stable momentum s in dynamic
leap control
environment control environment
Strategic Momentum Control
Strategic momentum control is suitable for
organizations operating in stable environment. As the
environment is stable, major assumptions made at the
time of formulating the strategy remains valid for
fairly long period of time.
There are 3 techniques of measuring Strategic
momentum control
1. Responsibility control centre
2. Critical success factor
3. Generic strategic approach
thanks