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290 PART 4 • STRATEGY EVALUATION

The Process of Evaluating Strategies
Strategy evaluation is necessary for all sizes and kinds of organizations. Strategy evalua-
tion should initiate managerial questioning of expectations and assumptions, should
trigger a review of objectives and values, and should stimulate creativity in generating
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alternatives and formulating criteria of evaluation. Regardless of the size of the organiza-
tion, a certain amount of management by wandering around at all levels is essential to
effective strategy evaluation. Strategy-evaluation activities should be performed on a con-
tinuing basis, rather than at the end of specified periods of time or just after problems
occur. Waiting until the end of the year, for example, could result in a firm closing the barn
door after the horses have already escaped.
Evaluating strategies on a continuous rather than on a periodic basis allows bench-
marks of progress to be established and more effectively monitored. Some strategies take
years to implement; consequently, associated results may not become apparent for years.
Successful strategies combine patience with a willingness to promptly take corrective
actions when necessary. There always comes a time when corrective actions are needed in
an organization! Centuries ago, a writer (perhaps Solomon) made the following observa-
tions about change:
There is a time for everything,
A time to be born and a time to die,
A time to plant and a time to uproot,
A time to kill and a time to heal,
A time to tear down and a time to build,
A time to weep and a time to laugh,
A time to mourn and a time to dance,
A time to scatter stones and a time to gather them,
A time to embrace and a time to refrain,
A time to search and a time to give up,
A time to keep and a time to throw away,
A time to tear and a time to mend,
A time to be silent and a time to speak,
A time to love and a time to hate,
A time for war and a time for peace. 4

Managers and employees of the firm should be continually aware of progress being
made toward achieving the firm’s objectives. As critical success factors change, organi-
zational members should be involved in determining appropriate corrective actions. If
assumptions and expectations deviate significantly from forecasts, then the firm should
renew strategy-formulation activities, perhaps sooner than planned. In strategy evalua-
tion, like strategy formulation and strategy implementation, people make the differ-
ence. Through involvement in the process of evaluating strategies, managers and
employees become committed to keeping the firm moving steadily toward achieving
objectives.

A Strategy-Evaluation Framework

Table 9-3 summarizes strategy-evaluation activities in terms of key questions that should
be addressed, alternative answers to those questions, and appropriate actions for an organi-
zation to take. Notice that corrective actions are almost always needed except when (1)
external and internal factors have not significantly changed and (2) the firm is progressing
satisfactorily toward achieving stated objectives. Relationships among strategy-evaluation
activities are illustrated in Figure 9-2.

Reviewing Bases of Strategy
As shown in Figure 9-2, reviewing the underlying bases of an organization’s strategy could
be approached by developing a revised EFE Matrix and IFE Matrix. A revised IFE Matrix
should focus on changes in the organization’s management, marketing, finance/accounting,