Having a strategy that’s appropriate and adaptable is critical for success. However, a strategy is useless if it can’t be evaluated against results.
Evaluating strategy provides information on strategy success and tests the logic that the organization’s strategic objectives were built upon, making adjustments possible. By evaluating strategy, executives can also determine which employees should be rewarded for their work.
An important component of project evaluation is variance analysis. This involves assessing the differences between the intended objectives and the results achieved. Analyzing variance helps management to ascertain whether action is needed and, if so, what type of action is needed.
Management reports and actions
There are four steps to evaluating organizational strategy. First, analyze management reports and identify actions that need to be taken. Second, assess and discuss priorities — which actions need to be taken first. Third, management needs to plan which corrective actions need to be implemented and approve them. Finally, the organization should also record and apply the lessons it has learned from the evaluation process.
The first step involves analyzing management reports in detail to assess variance in the data and to determine what the data points to in terms of successes and failures.
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