Page 278 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes If the need for evaluation was recognised from the outset, then a strategic evaluation will
ideally take place before the project begins delivering activities.
The purpose of evaluating causal connections between activities, outputs and outcomes, is
to explore whether or not the project’s assumptions about the likely outcomes and effects
of its activities and outputs are well-founded.

There are three fundamental strategy evaluation activities, viz. reviewing external and
internal factors that are the bases for current strategies; measuring performance and taking
corrective actions.

14.7 Keywords

Balanced Scorecard: Strategic performance management tool - a semi-standard structured report
supported by proven design methods and automation tools.
Benchmarking: Comparative method where a firm finds the best practices in an area and then
attempts to bring its own performance in that area in line with the best practice.

Management by Objectives: Process of agreeing upon objectives within an organisation so that
management and employees agree to the objectives and understand what they are in the
organisation.

Operational control: ensures that day-to-day actions are consistent with established plans and
objectives.
Responsibility centre: A segment of a business or other organisation, in which costs can be
segregated, with the head of that segment being held accountable for expenses.
Strategic evaluation and control: Process of determining the effectiveness of a given strategy in
achieving the organisational objectives and taking corrective actions wherever required.
Strategic surveillance: Broad-based vigilance activity in all daily operations both inside and
outside the organisation.
14.8 Self Assessment

Fill in the blanks:
1. ……………………control focuses on finding how a given strategy is effectively pursued
by the organisation.

2. ………………………..control is concerned with tracking a strategy as it is being
implemented.
3. …………………….control is done through policies, rules, standard operating practices
and orders from superiors.
4. Assumptions or predictions around which a strategy is built is referred to
as…………………………
5. PERT and CPM are techniques of………………………control.

6. Control is based on a ……………………..from performance measurement to strategy
formulation.
7. The analysis of variance in performance is generally presented in a format called
……………………

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