Strategy Evaluation and Control

What is Strategy Evaluation and Control?

Strategy Evaluation and Control is concerned with that facet of strategic management, with which an organization makes certain that it is attaining its objectives considered in the strategic action. If the answer is no, then what are the necessary measures needed for achieving strategic effectiveness?

In short, it is the process of ascertaining the effectiveness of the selected strategy in attaining the objectives of the organization.

Basically, in this step, there are two features:

  • Evaluation: It measures the results of strategic action.
  • Control: It takes necessary measures considering the gap that exists between intended results and actual results in the strategic actions.

To be more precise, Strategy Evaluation and Control is the final stage in the process of strategic management. The main aim is to make certain that the strategy is attaining the goals and objectives which are predetermined for the strategy. It makes a comparison of the actual result with the intended ones. Also, it provides feedback which is essential for the firm’s management for implementing corrective actions.

Table of Contents

  1. Strategy Evaluation
  2. Strategy Control
  3. Characteristics
  4. Need and Importance
  5. Process
  6. Principles
  7. Wrap Up

Strategy Evaluation

Strategy Evaluation appraises the execution of the strategies and gauges the performance of the organization. The feedback received is helpful in implementing control over the strategic management process. It operates at two levels:

  • Strategic Level: At this level, the managers seek to analyse the consistency of strategy with the environment.
  • Operational Level: This level focuses on identifying the way in which the said strategy is effectively followed by the firm.

Strategy Control

Strategic Control is the process that an organization uses to control the formulation and implementation of strategic plans. The strategists evaluate strategy after its formulation to determine whether the strategy is suitable for the achievement of the objective. Thereafter, once the strategy implementation is complete, again evaluation of the strategy takes place to ascertain whether the strategy would achieve its objectives.

Characteristics of Strategy Evaluation and Control

  • It has two main faces, i.e. evaluation and correction. Evaluation involves gauging the effectiveness of the strategy in terms of results and taking necessary corrective measures.
  • Strategy Evaluation and Control is a continuous process.
  • It aims at evaluating the success of strategy formulation and implementation in achieving the desired objectives.
  • It ensures that the organization is on the right track. In the absence of this process, the strategist could not be able to identify whether or not the strategy is producing the desired results.

Need and Importance of Strategy Evaluation and Control


  • Verification of Strategic Choice: We all know that an organization picks a single strategy out of various alternative strategies in hand. So, Strategy Evaluation and Control help in determining the vallidity of the strategic choice. Any strategy is formulated and chosen in light of the present scenario and condition. However, changes do occur over time. Strategy Evaluation and Control indicate if the strategy is still valid or if the revision is necessary.
  • Compatibility between strategy and decisions: With the aim of implementing the selected strategy, there are a number of decisions which managers take. Strategy Evaluation and Control determines whether the decisions are in line with the requirement of the strategy.
  • Progress Assessment: Strategy is no end; rather, it is a means to attain the objectives of the organization. Strategy Evaluation and Control allow the managers to assess the progress made by the firm towards the achievement of objectives. Now you must be wondering – when the progress is to be assessed. Well, it needs assessment both during and after strategy implementation. The reason is remedial action can be taken when it seems necessary.
  • Connection between performance and rewards: Strategy Evaluation and Control measures performance, which acts as the basis for rewarding employees. when the reward is based on performance, it boosts the morale of the employees and also helps in retaining them in the long term.
  • Feedback: Valuable insights are provided for future strategic planning. The information available through it assist the company’s management in making a suitable change in the strategy and necessary improvements in the implementation of the strategy.
  • Overcoming Resistance to Change: Strategic Control plays a key role in bringing change in the organization. The managers can use it to make certain the ongoing consideration of strategic initiatives and to convey the new strategic agenda.

Process of Strategy Evaluation and Control

Strategy Evaluation and Control involves four steps, these are:

  1. Setting benchmark of performance
  2. Measurement of performance
  3. Analyzing variance
  4. Taking corrective action

Principles of Strategy Evaluation and Control


  • Consistency: To check whether the way in which the business is operated is in conformity with the objectives of the business it strives for.
  • Consonance: How effectively the firm reacts to the change in its business environment. When there is a change in the preferences of consumers, the business should be able to fulfil the consumer needs accordingly.
  • Advantages: How competitive is the business? If the consumer purchases products from the business, even when there are multiple products available in the market, offered by the competitors.
  • Feasibility: Does the business has sufficient resources and tools to function smoothly? With the passage of time and the development of technology, the firm needs resources to achieve success in its activities.

Wrap Up

Above all, Strategy evaluation and control are as important as strategy formulation. This is because it tells us how efficient and effective the strategies are in the accomplishment of objectives and getting the desired results.

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