Monitoring Strategy Review, Evaluation, and Control
The best formulated and best implemented strategies
become obsolete as a firm’s external and internal environments change. Therefore, it is essential for strategists to systematically review, evaluate, and control the execution of strategies. Strategy Review and Control
Strategy Evaluation is vital to an organization’s well
being. Timely evaluations can alert management to potential or actual problems before a situation becomes critical. Strategy Evaluation includes three basic activities: (1) Examining the underlying bases of a firm’s strategy. : Mission, Vision Objectives (2) Comparing expected results to actual results. (3) Taking corrective actions to ensure that performance conforms to plans. Strategy Review, Evaluation, and Control The why of Strategy Evaluation Adequate and timely feedback is the cornerstone of effective Strategy Evaluation. Strategy Evaluation is important because organizations face dynamic environments in which key external and internal factors can change quickly and dramatically. Strategy Evaluation is essential to ensure that the stated objectives of an organization are being achieved. Strategy Review, Evaluation, and Control
Review of Underlying Bases of Strategy –
Develop revised IFE Matrix
Develop revised EFE Matrix
Strategy Review, Evaluation, and Control Monitor Strengths & Weaknesses; Opportunities & Threats
Are our strengths still strengths?
Has our organization added additional strengths? Are our weaknesses still weaknesses? Has our organization developed other weaknesses? Strategy Review, Evaluation, and Control Monitor Strengths & Weaknesses; Opportunities & Threats Are our opportunities still opportunities? Have other opportunities developed? Are our threats still threats? Have other threats emerged? Strategy Evaluation Framework
Table 9-3 summarizes strategy evaluation
activities in terms of key questions that should be addressed, alternative answers to those questions, and appropriate actions for managers to take. Note that corrective actions are needed except when (1) external and internal factors have not changed significantly and (2) the firm is making satisfactory progress toward achieving its objectives.