Strategies Evaluation &

Control
BY- ANUJ THAKUR (O3)
RITIKA PATIAL (18)
SARIKA WALIA (20)
SOURABH BHARDWAJ (22)
VIVEK DIXIT (29)

Strategies Evaluation & Control

The final stage in strategic management is strategy evaluation and

control.

In the strategy evaluation and control process managers determine

whether the chosen strategy is achieving the organization's objectives
or not.

Strategy Evaluation and Control could be defined as the process of

determining the effectiveness of a given strategy in achieving the
organisational objectives and taking corrective action whenever
required.

Concept of Evaluation

Strategic evolution is an important part of strategic management as it

checks whether the strategy implementation is going the right direction
or not.

Strategic evaluation is carried out against some pre-determined

performance standards, which include processing speed, and creating
and creating value and innovation.

It is executed through the help of strategic control and operational

control

Concept of Evaluation

Organisation deals within an environment that includes internal and external

factors, which keep changing continuously.

So it becomes organisations necessity of any organisation to determine

whether the preferred strategy is a strategic fit in the current situation or not.

It answers the following questions-

Has the strategy guided the organisation towards its objectives

Has the normal profit been achieved by an organisation?

Has the business grown or not?

Is there any need to change the strategy?

Importance of Strategic Evaluation

Getting Feedback, Appraisal, and Reward.

Verifying the Strategic Choice.

Checking the Link between the Decisions and Strategy.

Ensuring Successful Strategic Management.

Further Planning of Strategies.

Participants in Strategic Evaluation

Process

Directors

Chef Executives

SBU Heads

Financial Controllers

Executive Committees

Middle Level Manager

Obstacles in Strategic Evaluation

Limits to Evaluation

Difficulties in Measurement

Resistance to Evaluation

Focus on Short term Implications

Selecting between Effectiveness and Efficiency.

Concept of Controlling

An effort by an organisation to compare actual standards with the set

standards, determine the deviations, and take corrective corrections.

Objectives of control are as follows-

Comparing and checking whether the strategy is implemented in

accordance with the specified plans and policies.

Identifying the points at which the error and bottlenecks occur.

Taking corrective actions for the derived performance

Minimizing cost and maximizing profits.

Improve the efficiency.

Strategic Control Process

Regardless of the type or levels of control systems an organization needs,
control may be depicted as a six-step feedback model:

Determine what to control. What are the objectives the organization

hopes to accomplish?

Set control standards.What are the targets and tolerances?

Measure performance.What are the actual standards?

Strategic Control Process

Compare the performance the performance to the standards.How

well does the actual match the plan?

Determine the reasons for the deviations.Are the deviations due to

internal shortcomings or due to external changes beyond the control of the
organization?

Take corrective action.Are corrections needed in internal activities to

correct organizational shortcomings, or are changes needed in objectives due
to external events?

Strategic Control Process

NO
Determine
what to
Control

Set Control
Standards

Measure
Performance

Does
Performance
Match
Standards

YE
S
STOP

Take
Corrective
Action

Benchmarking

It is a strategy tool used to compare the performance of the business processes and
products with the best performances of other companies inside and outside the industry.
Benchmarking is the search for the industry best practices that lead to superior
performance.
This type of comparison proved very beneficial and Xerox, AT&T and other companies

began comparing the performance of their processes to the best standards in the industry.

Types of Benchmarking

Strategic Benchmarking- Managers use this type of benchmarking to

identify the best way to compete in the market. During the process, the
companies identify the winning strategies (usually outside their own
industry) that successful companies use and apply them to their
ownstrategic process.

Performance Benchmarking- It is concerned with comparing your

companys products and services. The tool mainly focuses on product and
service quality, features, price, speed, reliability, design and customer
satisfaction, but it can measure anything that has the measurable metrics,
including processes. Performance benchmarking determines how strong our
products and services are compared to our competition.

Types of Benchmarking

Process Benchmarking- It requires to look at other companies that

engage in similar activities and to identify the best practices that can
be applied to your own processes in order to improve them. Process
benchmarking is a separate type of benchmarking, but it usually
derives from performance benchmarking.

Approaches of Benchmarking
There are four ways you can do benchmarking

Internal Benchmarking

External or Competitive Benchmarking

Functional Benchmarking

Generic Benchmarking

Benchmarking

Advantages of Benchmarking

Easy to understand and use.

If done properly, its a low cost activity that offers huge gains.

Brings innovative ideas to the company.

Provides you with insight of how other companies organize their

operations and processes.

Increases the awareness of your costs and level of performance

compared to your rivals.

Facilitates cooperation between teams, units and divisions.

Disadvantages of Benchmarking

You need to find a benchmarking partner.

It is sometimes impossible to assign a metric to measure a process.

You might need to hire a consultant.

If your organization is not experienced at it, the initial costs could be

huge.

Managers often resist the changes that are required to improve the
performance.

Some of best practices wont be applicable to your whole organization.

The Balanced Scorecard

The balanced scorecard is astrategic planning and management

systemthat is used extensively in business and industry, government,
and non profit organizations worldwide to align business activities to
the vision and strategy of the organization, improve internal and
external communications, and monitor organization performance
against strategic goals.

It was originated by Dr. Robert Kaplan (Harvard Business School) and

David Norton

The Balanced Scorecard