Step 7 - Evaluate Strategies

Strategy evaluation is critical for assuring that objectives are being achieved. Even the best formulated and implemented strategies become obsolete as a firm's external and internal environments change. Managers desperately need to know when strategies are not working well. Yet no one likes to be evaluated too closely. Evaluating strategies involves three activities:

1. Review underlying bases of strategy

2. Measure performance and make comparisons

3. Take corrective actions.

The first of these activities is somewhat new in that organizations today are not waiting to see the bottom line financials to determine whether the strategies are effective, but in fact are assessing the underlying external and internal factors to see if changes have occurred there that warrant mission/objective/strategy changes.

Strategy evaluation is essential for all organizations. Strategy evaluation activities should be widely understood and supported, should trigger a review of mission/objectives/strategies, should involve all managers and employees, and should not be overbearing. Strategy evaluation should be economical and meaningful, should provide a true picture, should provide timely information, should foster mutual trust, should be simple, and should consist of three activities.

In the next worksheet, list ten actions that you feel will be needed to effectively monitor progress being made toward achieving the objectives and strategies you have recommended herein.

Strategy Evaluation Worksheet

Actions Needed To Evaluate And Monitor Strategies

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