Strategy review evaluation

and controlling
Group one
Student names

 Abdrahin sh yousuf Abdi

 Alrahman Allaahi Muumin
 Adna Alrahmaan Jaamac
 Xasna Idiris H.nuux
 Nimco Alrahmaan Maxamed
Learning objectives

 Meaning of strategic evaluation and controlling

 Strategy evaluation and its importance
 Key elements of strategy evaluation and its criteria
 Strategy evaluation process and its participants
 Meaning of strategic control and its process
 Types of control and its strategy control
 Importance of strategy control
LO.1=Meaning of strategic evaluation and
controlling

MEANING: Strategic evaluation and control is the process of

determining the effectiveness of a given strategy in achieving the
organizational objectives and taking corrective actions whenever
required
 Strategic control is the process used by organizations to control the
formation and execution of strategic plans
 Strategy evaluation is the process of analyzing a strategy to assess
how well it's been implemented and executed.
c

LO.2 Strategy evaluation and its

importance

 Strategic evaluation is the last step of the strategic management

process, and comes after the formulation and implementation of
strategy. Strategic evaluation is defined as the process of assessing
the efficacy of the strategy in achieving the organizational
objectives. In other words, strategic evaluation checks that whether
or not the strategy that was selected and implemented has met the
organizational objectives. It can be regarded as the performance
appraisal of organizational strategies
Importance of strategic evaluation

 Getting Feedback, Appraisal, and Reward: Helps measure the performance of

employees in attaining organizational goals. In strategic evaluation, the feedback of
employees is taken to perform the appraisal and good performance is rewarded to
motivate them.
 Verifying the Strategic Choice: Checks the validity of the strategic choice. The
strategic evaluation process ensures that the selected strategy is in line with the
objectives of an organization.
 Checking the Link between the Decisions and Strategy: Maps the decisions taken
by the strategists with the strategic requirements. The strategic evaluation process
ensures that the final decisions taken are coordinated with the strategies to achieve
organizational effectiveness.
CONT…….

 Ensuring Successful Strategic Management: Ensures efficiency in the

strategic management process. An efficient and successful strategic management
process helps the organization in meeting its objectives.
 Further Planning of Strategies: Helps in conceptualizing and designing further
strategies. Thus, it can be said that strategic evaluation acts as a base for new
strategic
LO.3 Key Elements of strategy evaluation and its criteria
 Is the existing strategy good for the organization?
 Will the strategy be good for the organization in the future?
 Is there need to change the strategy?
Criteria for strategy evaluation

 consistency refers to the extent the selected strategy does not pose a threat
to, or conflict with, the organizational goals and policies.
 Consonances refers to the extent the strategy conforms to the environmental
trends. In other words, to what extent the output of the organizational
internal and external analyses is consistent with the environmental trends.
 feasibility refers to the extent the strategy conforms to the environmental
trends. In other words, to what extent the output of the organizational
internal and external analyses is consistent with the environmental trends.
Participants in the Strategic Evaluation Process

 Directors
 Chief executives
 Financial controllers
 middle level managers
LO-4 Strategy evaluation process and its
participants

Strategy process

 STEP 1.Setting standards of performance

 STEP 2.Measurement of performance
 STEP 3.Analyzing variance
 STEP 4.Taking corrective actions
STEP 1.Setting standards of performance

It must focus on question like:

 What standard should be set?
 How should standard be set
 In what terms should these standard be

STEP 2.Measurement of performance: Standards of performance act as a

benchmark in evaluating the actual performance. Operationally it is done through

accounting, reporting and communication system. The key areas which must be

kept in mind are difficulty in measurement, timing of measurement (critical

points) and periodicity in measurement (task schedule

STEP 3.Analyzing variances:

 The two main tasks are noting deviations and finding the cause of
deviation
 When actual performance is equal to budgeted performance
tolerance limit must be set.
 When actual performance is greater than budgeted performance one
must check the validity of standard and efficiency of management.
 When actual performance is less than budgeted performance we
must pinpoint the areas where performance is low and take
corrective action.
STEP 4.Taking corrective actions

It consists of the following:

• Checking of performance: It includes in depth analysis and
diagnosis of the factors that might b responsible for bad
performance.
• Checking of standards: It results in lowering or elevation of
standards according to the conditions
. • Reformulate strategies, plans, objectives: Giving a fresh start to
the strategic management process
LO.5 Meaning of strategic control and its
process

Meaning of strategic control

 Strategic control take into account the changing assumptions that
determine a strategy, continually evaluate the strategy as it is being
implemented and take necessary action and steps to adjust the
strategy to the new requirement.
 Strategic control regularly monitors the changes occurring inside
and outside an organization to update the strategies as per the
required changes.
Process of strategic control

 Establishing Sub-goals: Implies dividing the strategies into

standards and targets, so that a strategy can be evaluated easily
 Creating Measurement Systems: Involves creating the procedures
or techniques for measuring the performance
 Comparing the Actual Performance: Involves finding the gaps
between actual and desired performance,
 Initiating the Corrective Action: Implies taking an action to cover
the gaps
LO.6 Types of control

 Operational control: It is aimed at allocation and use of organization resources

through evaluation of performance of organizational units, divisions, SBU;’s to
assess their contribution in achieving organizational objectives

 Strategic control: It takes into account the changing assumptions that determine
a strategy, continually evaluate the strategy as it is being implemented and take
the necessary steps to adjust the strategy to the new requirements
Types of strategic control

 Premise Control: Helps in recognizing the changes in the assumptions of a strategy.

Any change in an assumption of strategy may affect the organization’s success
 Implementation Control: Focuses on evaluating the plans, programs, and projects
that have been developed during the implementation stage
 two types of implementation control are as follows::
 Monitoring Strategic Thrust: Involves controlling the projects that represent the
actions that need to be taken if the overall strategy is to be fulfilled
 Reviewing Milestones: During strategic planning, you likely identified important
points in the implementation process. When these milestones are reached, your
organization will reassess the strategy and its relevance
cont.……

 Strategic Surveillance: Refers to a general type of control. It monitors the

changes happening inside and outside the organization with the help of available
information sources, and identifies those changes or events that may affect the
organization’s strategy.
 Special Alert Control: Refers to the type of control that discovers critical
situations
LO.7 IMPORTANCE OF STRATRGIC CONTROL:
• There is a need for feedback, appraisal and reward • To check on the validity of
strategic choice • Congruence between decisions and intended strategy • Creating
inputs for new strategic planning