Strategic Evaluation and Control
Yashodeep K. More
Definition Strategic 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 wherever required.
Purpose of Strategic Evaluation
The purpose of strategic evaluation is to evaluate the effectiveness of strategy in achieving organizational objectives.
Participants in Strategic Evaluation Shareholders Board of Directors Chief executives Profit-centre heads Financial controllers Company secretaries External and Internal Auditors Audit and Executive Committees Corporate Planning Staff or Department Middle-level managers
Strategic Evaluation and Control Strategic evaluation operates at two
levels: • Strategic level - wherein we are concerned
more with the consistency of strategy with the environment.
• Operational level – wherein the effort is directed at assessing how well the organisation is pursuing a given strategy.
Process of Strategic Evaluation and Control
Barriers in Evaluation Limits of control Difficulties in measurement Resistance to evaluation Rely on short-term implications of
activities
Performance Measurement Performance Measurement & &
Monitoring Monitoring
Purpose of Performance Measurement
Provide evidence of how well the approved procedures are meeting the requirements.
Obtaining the best value for money spent Enabling fair competition Encouraging competitive and efficient
markets. Improve decision making and facilitate
continuous improvement
Appropriate Measure Measuring in organizational performance is
one of the important part of Strategic Evaluation.
It Consist two Criteria:1. Quantitative Factor2. Qualitative Factors
Quantitative Factors Return on investment Return in Equity Profit Margin Market Share Debt-to-Equity Earning per Share
Qualitative Factors
Consistency Consonance Advantage Feasibility
Problems in Measuring & Monitoring PerformanceShort-Term Orientation
Goal Displacement• Behavior Substitution• Sub-Optimization.
Summary
Strategic Evaluation and Control
Performance Measurement & Monitoring
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