Wednesday, 18 December 2019

Unit 14: Strategic Evaluation and Control

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 Unit 14: Strategic Evaluation and Control

Strategic evaluation generally operates at two levels – strategic and operational level.

At the strategic level, managers try to examine the consistency of strategy with environment.

At the operational level, the focus is on finding how a given strategy is effectively pursued by the organisation.

Strategic control is a type of “steering control”.

We have to track the strategy as it is being implemented, detect any problems or changes in the predictions made, and make necessary adjustments.

Operational control provides post-action evaluation and control over short periods.

They involve systematic evaluation of performance against predetermined objectives.

Organisations use many techniques or mechanisms for strategic control.

Some of the important mechanisms are management Information systems, bench marking, balanced scorecard, key factor rating, responsibility centres, network technique, Management by Objectives (MBO), Memorandum of Understanding.

272    Strategic Management Notes if the need for evaluation was recognised from the outset, then a strategic evaluation will ideally take place before the project begins delivering activities.

The purpose of evaluating causal connections between activities, outputs and outcomes, is to explore whether or not the project’s assumptions about the likely outcomes and effects of its activities and outputs are well-founded.

There are three fundamental strategy evaluation activities, viz. reviewing external and internal factors that are the bases for current strategies; measuring performance and taking corrective actions.


Balanced Scorecard: Strategic performance management tool - a semi-standard structured report supported by proven design methods and automation tools.

Benchmarking: Comparative method where a firm finds the best practices in an area and then attempts to bring its own performance in that area in line with the best practice.

Management by Objectives: Process of agreeing upon objectives within an organisation so that management and employees agree to the objectives and understand what they are in the organisation.

Operational control: ensures that day-to-day actions are consistent with established plans and objectives.

Responsibility centre: A segment of a business or other organisation, in which costs can be segregated, with the head of that segment being held accountable for expenses.

Strategic evaluation and control: Process of determining the effectiveness of a given strategy in achieving the organisational objectives and taking corrective actions wherever required.

Strategic surveillance: Broad-based vigilance activity in all daily operations both inside and outside the organisation.

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