Strategy Evaluation Matrix Framework by Madhuranath R

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The Strategy Evaluation Matrix is an original framework that can be used in the Strategic Planning process. After the SWOT factor analysis, several Strategic Options are generated based on the SWOT Matrix. These strategic options can be evaluated using the Strategy Evaluation Matrix (SEM) framework. SEM Framework allows users to objectively evaluate the strategic options based on the capability of the firm to execute the strategic option and the risks (financial, strategic, brand, etc.) associated with the execution of the strategy option. The criteria for allocating a specific strategic option into a specific quadrant of the framework is explained within the framework quadrant. - Madhuranath R

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Strategy Evaluation Matrix Framework by Madhuranath R

  1. 1. Strategy Evaluation Matrix An Original Framework for selecting specific strategies from multiple strategic options Madhuranath R © 2012
  2. 2. STRATEGY EVALUATION MATRIX An Original Framework 4 AVOID INVESTIGATE HIGH These strategies get third preference, as - These strategies need to be researched, as- • They need high investment to implement • They can potentially yield high ROI • Ability to execute is very low in near future • Minor changes may improve executabilityRisk Involved • Outcomes are unknown | difficult to evaluate • Outcomes are in high-gain : high-pain zone 2 DELAY EXECUTE These strategies get third preference, as - These strategies need to be executed first, as- • They need little investment to implement • They provide the best ROI • Ability to execute may improve in future • Actionizing is relatively easy • The outcome from these may go either way • Easier to evaluate outcomes for these LOW 0 0 LOW 1.5 Ability to Execute HIGH 3 Conclusion: Select the strategic options that fall into the “magic quadrant” of LOW Risk and HIGH ability to execute. These strategies yield the maximum value per dollar.
  3. 3. Applying the SEM FrameworkWhere and Why of the Framework This framework is used in one of the steps of strategy planning Based on SWOT, firstly several strategic options are evolved To evaluate the strategic options evolved, use this framework This is a generic framework applicable for other uses like –  Ideation Process – for filtering ideas generated by brainstorming  Marketing Campaigns – to evaluate campaign options proposed  Product Development – to evaluate features for the new product
  4. 4. Thank You!Author: Madhuranath RContact: Madhuranath.R@gmail.com

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