In this lesson you learned that monitoring and tracking performance is the fifth element in the strategy management process. You also learned that effective strategy passes the three tests of Good fit, competitive advantage and strong performance.

1. Crafting and
Executing
Strategy: The
managerial process
Global Business Consultants &
Partners Training Courses
Copyright 2020 Global Business Consultants

2. Chapter 5. Evaluating
performance and making
corrective adjustments
Lesson 1: Monitoring new external developments,
evaluating progress and making corrective
adjustments

3. “A company’s vision, mission as well as
its objectives, strategy and approach to
strategy execution are never final;
managing strategy is an ongoing
process.”
Strickland

4. Evaluating performance and initiating
corrective adjustments.
The trigger point for deciding whether to persevere
or pivot a company’s vision and mission, objectives,
strategy, and/or strategy execution methods, is the
fifth process in the strategy management process.
- Monitoring new external developments, evaluating the
company’s progress, and making corrective adjustments -
Monitoring
new
external
developments,
evaluating
progress
and making
corrective
adjustments

5. Evaluating performance and initiating corrective
adjustments.
The three tests of an effective strategy is:
Good Fit, competitive advantage and strong performance.
The litmus test is whether the company is meeting and
exceeding its Financial and Strategic performance targets.
As long as the company’s strategy continue to pass the litmus
test (ultimately the three tests listed above), the business owner
and/or management team may decide to persevere.
Monitoring
new
external
developments,
evaluating
progress
and making
corrective
adjustments

6. Evaluating performance and initiating
corrective adjustments.
In the case where a company is passing the three tests,
simply fine-tuning the strategic plan and continuing with
efforts to improve strategy execution are sufficient.
However, when a company encounters disruptive changes
in its environment, questions need to be raised about the
appropriateness of its direction and strategy.
Monitoring
new
external
developments,
evaluating
progress
and making
corrective
adjustments

7. Evaluating performance and initiating
corrective adjustments.
If the company experiences a downturn in its market
position or persistent shortfalls in performance, the
business owner and/or management team are obligated to
ferret out the causes.
Does the market downturn or inadequate performance
relate to poor strategy, poor strategy execution, or both?
At this point, it is time to take corrective action.
Monitoring
new
external
developments,
evaluating
progress
and making
corrective
adjustments

8. Evaluating performance and initiating
corrective adjustments.
A company’s direction, objectives and strategy have to be
revisited anytime external or internal conditions warrant.
The business owner and/or management team are
obligated to assess which of the company’s operating
methods and approaches to strategy execution merit
continuation and which need improvement.
Monitoring
new
external
developments,
evaluating
progress
and making
corrective
adjustments

9. Evaluating performance and initiating
corrective adjustments.
Effective strategy execution is always the product of much
organisational learning.
It is achieved unevenly; coming quickly in some areas of
the business and proving nettlesome in others.
Monitoring
new
external
developments,
evaluating
progress
and making
corrective
adjustments

10. Evaluating performance and initiating
corrective adjustments.
To ensure a company can sustain and grow, the strategy
execution process, every aspect of the process must be
scrutinized.
The company must proactively institute timely and
effective adjustments that will improve the company closer
to operating excellence.
Monitoring
new
external
developments,
evaluating
progress
and making
corrective
adjustments

11. Congratulations! You’ve completed lesson 1.
Recap: In this lesson you learned that monitoring and tracking
performance is the fifth element in the strategy management
process. You also learned that effective strategy passes the three
tests of Good fit, competitive advantage and strong
performance.
Awesome work!
Now click Complete and then Next to take the final Quiz for
this course.