Strategy evaluation
Strategy evaluation is a process that involves conducting an analysis of an organization's strategic plan as well as the conducting assessments to determine whether the organization has been able to meet the set objectives using the strategy under evaluation. Strategy evaluation is therefore a tool that helps to conduct an internal analysis that assists in making decisions that affect the strategy used by the organization. Implementing any form of strategy evaluation incorporates the use of various activities, one of which is;
- Reviewing base of strategy
The base of any strategy used by an organization is determined by the strengths, weaknesses, threats and opportunities that the organization is exposed to in the environment it operates in (Bhandari & Verma, 2013). Since the validity of the strengths, weaknesses, threats and opportunities identified tend to occur in short durations, identifying the impact they have ensures that an organization is prepared in advance to take advantage of the opportunities that occur and also protect itself from any threats thereby increasing its strength and overcoming any challenges that may come about. Therefore, it is important to come up with strategies that are easier to implement and allow for quick decision making.
Through strategy evaluation process, an organization is able to identify how competitors respond to the type of strategy used by the organization as well as how they alter their strategies in accordance with the changes made. This allows the organization to determine the effect that strengths and opportunities have had on the organization and also the consequences arising from opportunities and threats (Bhandari & Verma, 2013). Most processes that an organization engages in are determined by the SWOT analysis. Since the analysis creates an image of where the organization has reached and the impact that it has on society, the strategy evaluation process ensures that any opportunities identified in the SWOT analysis are exploited and any risks are done away with.
Lastly, the activity ensures that strategies that are identified as being ineffective or unable to achieve the set objectives are addressed and corrective measures taken. Through strategy evaluation, the organization is able to identify changes in the processes such as a decline in demand or competitive actions made by the competitors and in so doing, prepare the organization for the changes in strategy needed to adapt to the situation and attain the set objectives.
- Measuring organizational performance
The activity involves an assessment by managers to assess whether planned activities compare to the actual progress and whether the strategy in use is able to achieve the set objectives. The process usually involves comparing what has already been achieved with what was the targeted results to determine whether the organization will be able to achieve all the set objectives (Stead et al, 2004). Instead of waiting until too much harm occurs before changing a strategy, the activity ensures that the management is kept informed on the progress of the proposed strategy and also where improvements can be made.
The activity is also responsible for ensuring that any deviations to the suggested strategy are identified early in advance and corrective action is taken. Since the process involves assessing the individual performance of the processes that assist in achieving the organizational objectives, identifying those processes that affect performance on an individual level makes it easier to fix problems before the progress to other departments.
- Taking corrective actions
Corrective action is only necessary when an issue has been identified that could create variations between the planned and actual results. Through strategy evaluation, the management is able to identify discrepancies in the strategy used and determine which areas need corrective action (Stead et al, 2004). Rather than altering the entire strategy, corrective action can be directed to specific areas in the strategy that cause problems and thereby bring about changes that ensure that the set objectives are achieved within the given time frame.
References
Bhandari, A., & Verma, R. P. (2013). Strategic management: A conceptual framework. New Delhi: McGraw-Hill.
Stead, W. E., Stead, J. G., & Starik, M. (2004). Sustainable strategic management. Armonk, N.Y: M.E. Sharpe.
