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292 PART 4 • STRATEGY EVALUATION
FIGURE 9-2
A Strategy-Evaluation Framework
ACTIVITY ONE: REVIEW UNDERLYING BASES OF STRATEGY
Prepare revised Internal Prepare revised External
Factor Evaluation (IFE) Matrix Factor Evaluation (EFE) Matrix
Compare revised to Compare revised to
existing Internal Factor existing External Factor
Evaluation (IFE) Matrix Evaluation (EFE) Matrix
Do significant YES
differences occur?
NO
ACTIVITY THREE:
TAKE CORRECTIVE
ACTIONS
ACTIVITY TWO: MEASURE ORGANIZATIONAL PERFORMANCE
Compare planned to actual progress toward meeting stated objectives
Do significant YES
differences occur?
NO
Continue present course
Measuring Organizational Performance
Another important strategy-evaluation activity is measuring organizational performance.
This activity includes comparing expected results to actual results, investigating
deviations from plans, evaluating individual performance, and examining progress being
made toward meeting stated objectives. Both long-term and annual objectives are
commonly used in this process. Criteria for evaluating strategies should be measurable
and easily verifiable. Criteria that predict results may be more important than those that
