1. Strategy Evaluation and Control

2. Strategic Control Process
Quantitative
Qualitative
In both cases process consists of three phases – 1. Evaluation Criteria . 2. Performance Evaluation 3. Feedback

3. Quantitative
To compare the performance of the organization over different time periods
To compare the performance with it’s competitors in the industry
To compare the performance against industry averages

4. Financial Ratios ROI Return on Equity Profit Margin Market Share
Debt to Equity
EPS
Sales Growth
Asset Growth

5. Methods of Control
DuPont Chart
Budgets
Audits

6. Time Related Control
Critical Path Method
PERT
MBO

7. Problems of Control System
Reporting data validity
Criteria for measurement in question
Performance standards may be set with inherent contradictions
Over emphasis on short term measures

8. Evaluation of Strategy
Strategy Formulation
Strategy Implementation
Strategy Evaluation

9. Business Portfolio Analysis
BCG Matrix
McKinsey Matrix
Strategic Planning Institute’s Matrix
Arthur D’Little Company’s Matrix
Hofer’s Product / Evolution Matrix

10. Qualitative Factors
Balanced Score Card by Norton and Kaplan

11. The Basic Performance Pyramid
What are we in business for?
Mission
Where are we going?
Vision
What do we want to achieve?
Goals/Objectives
How will you achieve your goals/objectives?
Strategies
What do you need to do well?
Success Drivers
How will you measure
how well you are doing?
Performance Measures

12. Balanced Scorecard Approach
The Balanced Scorecard translates an organization’s mission and strategy into goals and measures, organized into four different perspectives
customer
financial
internal business process
innovation and learning
In ADMat’s view the balanced scorecard should achieve a “balance” between/across the organization’s strategic objectives. In other words, they should speak to the most important aspects of the organization and its mission (e.g. satisfied service recipients, the team, efficient service delivery, rewarding relationships with stakeholders etc.)

13. Balanced Scorecard Approach (Cont’d)
The Balanced Scorecard helps an organization to:
determine progress towards its goals/objectives
communicate strategic direction
determine success or failure of its strategies/initiatives
define future strategies
establish benchmarks
demonstrate value-added

14. Balanced Scorecard Approach (Cont’d)
The best Balanced Scorecards will tell the story of the organization’s strategy and cause the overall performance to be managed such that the stated mission is accomplished.