Criteria of Strategic Evaluation and Control

20/03/2020 1 By indiafreenotes

Strategic Evaluation and Control refer to the systematic process of assessing the efficiency and effectiveness of a strategy after its implementation to determine if it meets the set objectives and contributes to the overall goals of an organization. This involves continuous monitoring and analyzing the actual performance against planned targets, identifying deviations, and implementing corrective actions as needed. The control aspect ensures that any strategic initiative remains aligned with the organization’s goals, adapts to changes in the external environment, and efficiently uses resources. This dual process helps organizations to continuously refine and adjust their strategies to optimize outcomes and ensure long-term success.

Strategic evaluation and control involve assessing the implementation of strategic plans and their outcomes, and ensuring that performance aligns with organizational goals.

Criteria for Strategic Evaluation

  1. Relevance:

The strategies should remain relevant to the internal and external environment. This includes checking if the strategic goals still align with the market dynamics and organizational mission.

  1. Effectiveness:

Measures the degree to which the strategic objectives have been achieved. This involves comparing actual results against intended outcomes.

  1. Efficiency:

Assesses how resources are utilized and whether the outcomes are worth the input. It looks at cost-effectiveness and resource allocation.

  1. Adaptability:

Evaluates how flexible and adaptable the strategies are in response to changing conditions in the environment.

  1. Sustainability:

Checks if the strategy can sustain organizational growth and performance over the long term, considering environmental, social, and economic factors.

  1. Consistency:

Ensures that strategies are consistent with each other and with the overall business objectives, avoiding any conflict between various strategic initiatives.

Criteria for Strategic Control

  1. Alignment:

Ensures that the strategic actions are aligned with the set strategic goals. This involves continuous monitoring and alignment of operations with strategic objectives.

  1. Timeliness:

Focuses on the timely execution of strategic initiatives and the speed of response to any deviations from the plan.

  1. Accuracy:

Involves collecting and utilizing accurate data for making informed decisions. This ensures that the controls in place are based on reliable and valid information.

  1. Comprehensiveness:

Encompasses all aspects of the organization and its environment. It checks that all relevant factors are considered in the control process.

  1. Flexibility:

Looks at how easily the organization can adjust its strategies and operations in response to feedback and environmental changes.

  1. Cost-effectiveness:

Evaluates whether the benefits of a control mechanism justify the costs involved. This is crucial for maintaining financial health and optimizing resource usage.