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EVALUATION

CRITERIA
FOR
STRATEGIES
INTRODUCTION

Organizations prepare strategies to accomplish its


objectives.
It is necessary to revise the existing business to
adjust to a new environment and take advantage of
it. Therefore, it is necessary that the strategy to be
evaluated.
MEANING OF STRATEGIC
EVALUATION
Strategic evaluation is the process of determining the
effectiveness of a given strategy.
It consists of the following issues:
Whether organizational objectives are attainable
with given organizational resources?
Whether the policies and strategies are matching
corporate objectives?
Whether the actual performance is in accordance
with the expected results?
IMPORTANCE OF STRATEGIC
EVALUATION

FEEDBACK
FUTURE PLANNING
MOTIVATION TO EMPLOYEES
ASSISTS MANAGERS IN DECISION
MAKING
CRITERIA FOR EVALUATION
STRATEGY
ØINTERNAL CONSISTENCY
ØCONSISTENCY WITH ENVIRONMENT
ØAPPROPRIATE USE OF ORGANIZATION’S
RESOURCES
ØTIME HORIZON
ØDEGREE OF RISK
ØWORKABILITY
BARRIERS IN
ØLIMITS OF CONTROL
ØDIFFICULTIES IN MEASUREMENT
ØRESISTANCE TO EVALUATION
ØSHORT TERM
ØRELYING ON EFFICIENCY VERSUS
EFFECTIVENESS
EVALUATION AND CONTROL
PROCESS
PARTICIPANTS
1. INTERNAL AND EXTERNAL
STAKEHOLDERS
2. GOVERNMENT
3. BOARD OF DIRECTORS
4. CHIEF EXECUTIVES
5. STRATEGIC BUSINESS UNITS
6. FINANCIAL CONTROLLERS
7. AUDIT AND EXECUTIVE COMMITTEES
8. CORPORATE PLANNING STAFF
9. MIDDLE-LEVEL MANAGERS
THANK
YOU!

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