The process is strategic because it involves preparing the best way to respond to the circumstances of the organization's environment, whether or not its circumstances are known in advance; nonprofits often must respond to dynamic and even. To Know more, click on. Once these goals and objectives are known throughout the company, managers and employees at every level will have an end state in mind and be more focused on their achievement. There has to be a way of finding out whether the strategy being implemented will guide the organization towards its intended objectives. Thus in this case the strategists must discover the causes of deviation and must take corrective action to overcome it.
Accurate and Technically Adequate Information on the Merit of Program Being Assessed is Provided: Evaluator can also use the evaluation report to share his suggestions or even suggest alternatives. As critical success factors change, organizational members should be involved in determining appropriate corrective actions. Element such as human resource management was neglected and that resulted to good employee left the company. The implementation was inappropriate for the strategy 3. Are the resources being utilised properly? While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
The implementation process was mismanages 4. As with any management tool, it is used for one purpose only: to help an organization do a better job - to focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. Findings — Benchmarking remains an important strategic tool of business in turbulent times. The information that is being evaluated and controlled must be relevant to the information and activities that are being monitored. The most common adjustment involves additional coaching by management, additional training, more positive incentives, more negative incentives, improved scheduling, compensation practices, training programs, the redesign of jobs or the replacement of personnel.
Strategic Evaluation is the final phase of. Getting bogged down with the activities that do not really count for achievement makes the evaluation ineffective. Strategic planning is a management tool. Hence, the best time for evaluation must be identified in the context of the project and then the practice should be carried out. In this manner, strategic controls are early warning systems and differ from post-action controls which evaluate only after the implementation has been. The process of strategic evaluation provides a considerable amount of information and experience to strategists that can be useful in new strategic planning. In order to determine the benchmark performance to be set, it is essential to discover the special requirements for performing the main task.
In the absence of such evaluation, managers would not know explicitly how to exercise such discretion. Active participation by stakeholders can result in new knowledge and a better understanding of their environment. Controls should be timely so that corrective action can be taken quickly. Evaluation The effective control must be: Control should involve only the minimum amount of information as too much information tends to clutter up the control system and creates confusion. It leads to strategic re-thinking. The formulation of strategy lays down the strategic intent and the strategy required to achieve them. The four basic type of strategic control are- 1.
This is so because strategic evaluation is a nebulous process; many factors are not as clear as the managers would like these to be. In what terms should these standards be expressed? Controls to Evaluate a Marketing Plan Controls are necessary for the evaluation phase. Strategic evaluation can help to assess whether the decisions match the intended strategy requirements. The process of Strategy Evaluation consists of following steps- 1. Has the firm progressed satisfactorily toward achieving its stated objectives? Operationally it is done through accounting, reporting and communication system. Leads to Continously Learning and Continuous Improvement: The evaluation must be such that all the stakeholders should be able to interperet the evaluation criteria and its findings. These elements are referred to as input, process, and output controls, respectively.
Implementation, evaluation and control are like the three legs of a stool; remove one, and the stool wobbles and crashes to the ground. A great strategy with poor implementation won't help the business achieve its goals, because it won't take the proper steps to achieve the strategy. Eg:- Environmental factors, Organizational factors. Embed Code Embed Code Copied. Explain why strategy evaluation is complex,. Erroneous strategic decisions can inflict severe penalties and can be exceedingly difficult, if not impossible, to reverse.
Formal evaluations offer more in-depth assessment of an employee's performance relative to the job goals and responsibilities. International Journal of Productivity and Performance Management. The best ideas still need to be enacted. Changing an established standard usually is necessary if the standards were set too high or to low are the outset. Moreover, the evaluator must evaluate all the indicators and its results in the context of the project, the project area and the project beneficiaries. Various authors have proposed that all strategic control systems necessarily comprise a small set of standard elements, the absence of any one of which makes strategic control impossible to achieve e. Sorry, but copying text is forbidden on this website! The major models differ primarily in the degree of explicitness, detail, and complexity.
Taking corrective actions to ensure that performance conforms to plans. Is there a need to change and reformulate the strategy? Requirements for Effective Evaluation Controls should aim at pinpointing exceptions as nitpicking does not result in effective evaluation. Strategic evaluation and control, therefore, performs the crucial task of keeping the organization on the right track. Evaluating strategies on a continuous rather than a periodic basis allows benchmarks of progress to be established and more effectively monitored. Control should monitor only managerial activities and results even if the evaluation is difficult to perform.
The performance indicator that best identify and express the special requirements might then be determined to be used for. Research studies have identified important factors that influence control system design: Size Business Environment Technology Interdependence Strategies Corporate Strategy Logic for linking controls to strategy depends on: Different organizations operate in different strategic contexts. Strategic Surveillance Strategic surveillance can be done through a broad-based, general monitoring on the basis of selected information sources to uncover events that are likely to affect the strategy of an organization. Operational Problems Even if managers agree for strategic evaluation, the problem of strategic evaluation is not over, though a beginning has been made. Explain how you would estimate the total worth of a business. A poor strategy with great implementation is also a waste of time and money; the tactical steps may be flawlessly executed, but without a strong strategic vision, they won't achieve the company's goals. Therefore, the purpose of strategy evaluation is to evaluate the effectiveness of a strategy that the organization to achieve predetermined goal.