Strategic evaluation and control is the process of determining the effectiveness of an organization's strategy in achieving objectives and taking corrective actions when needed. It operates at both the strategic level, assessing consistency with the environment, and operational level, evaluating how well the strategy is being pursued. Participants in strategic evaluation include shareholders, directors, executives, managers, and auditors. Key aspects of the process include performance measurement, monitoring, and addressing barriers like limits of control, measurement difficulties, and resistance to evaluation. Performance is measured both quantitatively using metrics like profits and market share, and qualitatively considering consistency, advantage, and feasibility. Short-term thinking and goal displacement are challenges to effective performance measurement and monitoring.

1. Strategic Evaluation and
Control
Yashodeep K. More

3. Definition
 Strategic evaluation and control could be
defined as the process of determining
the effectiveness of a given strategy in
achieving the organisational objectives
and taking corrective action wherever
required.

4. Purpose of Strategic Evaluation
 The purpose of strategic evaluation is
to evaluate the effectiveness of
strategy in achieving organizational
objectives.

5. Participants in Strategic
Evaluation
 Shareholders
 Board of Directors
 Chief executives
 Profit-centre heads
 Financial controllers
 Company secretaries
 External and Internal Auditors
 Audit and Executive Committees
 Corporate Planning Staff or Department
 Middle-level managers

6. Strategic Evaluation and Control
 Strategic evaluation operates at two
levels:
• Strategic level - wherein we are concerned
more with the consistency of strategy with the
environment.
• Operational level – wherein the effort is
directed at assessing how well the
organisation is pursuing a given strategy.

7. Process of Strategic Evaluation and Control

8. Barriers in Evaluation
 Limits of control
 Difficulties in measurement
 Resistance to evaluation
 Rely on short-term implications of
activities

9. Performance MeasurementPerformance Measurement
&&
MonitoringMonitoring

10. Purpose of Performance
Measurement
 Provide evidence of how well the approved
procedures are meeting the requirements.
 Obtaining the best value for money spent
 Enabling fair competition
 Encouraging competitive and efficient
markets.
 Improve decision making and facilitate
continuous improvement

11. Appropriate Measure
 Measuring in organizational performance is
one of the important part of Strategic
Evaluation.
 It Consist two Criteria:
1. Quantitative Factor
2. Qualitative Factors

12. Quantitative Factors
 Return on investment
 Return in Equity
 Profit Margin
 Market Share
 Debt-to-Equity
 Earning per Share

13. Qualitative Factors
 Consistency
 Consonance
 Advantage
 Feasibility

14. Problems in Measuring &
Monitoring Performance
Short-Term Orientation
Goal Displacement
•Behavior Substitution
•Sub-Optimization.

15. Summary
 Strategic Evaluation and Control
 Performance Measurement & Monitoring

16. Thank You…