We need appropriate strategies to achieve set goals today and in future. Strategies are required for result, growth, enhanced service delivery and other corporate objectives. Strategies do not have full proof guarantee to success. They may succeed or fail. We sometimes have to change redirection or even discontinue our strategies in our effort to move forward
Evaluation provides the basis of investigating the success or failure of our strategies. Managers have a responsibility to develop the value orientation to objectively evaluate their strategies for the purpose of taking corrective actions. This lecture provides some guide on ways of evaluating organization’s strategies
Some Points on Strategy
A leader might be interested in improving resource capability, productivity and enhancing the quality of service delivery. He might be interested in making specific changes in line with government reform programmes and vision statement. Nigerian leaders have for some time now been expressing the desire to build stronger organizations, fight corruption and become global players, etc. This value orientation compels managers to evolve strategies that will enable effect desired change and leverage on service delivery.
Managers also embark on strategies to cope with challenges and threats that occur in the environment as well as take advantage of opportunities in the environments. Managers evolve strategies build the internal capability of to cope with the demands of the environment.
Strategy is the crafting of a statement that can make fundamental contribution to the future of the organization. Corporate strategy is an explicit and shared set of goals and policies defining what the company is to achieve and become in future (Guth and Tagiuri, 1965). Strategic decisions have large scale implication on resources, people and the organisation
It is not enough to provide strategy. We must take concrete steps to implement them. Good strategies and poor implementation have led to failure. Poor strategy and poor implementation is futile and fatal. Poor strategy and good implementation are difficult to predict! They may lead to failure or success. Even in situations of good strategy and good implementation, success cannot be guaranteed. Evaluation forms part of the effort in strategy formulation and implementation and is required to raise the level of success in strategy formulation.
Three Ways Managers Respond to Events
Drifting - Very many managers do not worry about what happens in the environment. They merely stay where they are until they are driven down by the gale of events.
Reactive - In this case, the manager does not have much sense of anticipation of events that will occur but as soon as there is a new development or when things are at crisis state, he is active. The reactive manager spends too much of his time with current problems and has not much time left to look at the longer time frame. He does not take much strategic decisions.
Proactive - The manager anticipates events, analyze trends, looks at the direction the environment is going and is proactive. The point being made here is that only managers that are proactive are likely to evaluate strategies and activities.
Concept of Strategy Evaluation
- To evaluate is to assess, estimate, appraise, measure or value. Evaluation is concerned with relevance, effectiveness, the extent to which strategies have the potentials of leading to goals. It is concerned with:
- Assessing the value of strategic plans to organizational process, the testing of organization’s response to opportunities and threats
- Determining the extent to which strategy meets the expectations of stakeholders
- Determining the fit between strategy, actions and outcomes
- Deciding the critical challenges in strategy implementation
- Learning from failure or success in strategy formulation and implementation
- Drawing on the experience of strategic planning to prepare future strategies
- Helping managers sharpen their strategies for goal attainment