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292 PART 4 • STRATEGY EVALUATION<br />

FIGURE 9-2<br />

A Strategy-Evaluation Framework<br />

ACTIVITY ONE: REVIEW UNDERLYING BASES OF STRATEGY<br />

Prepare revised Internal<br />

Factor Evaluation (IFE) Matrix<br />

Compare revised to<br />

existing Internal Factor<br />

Evaluation (IFE) Matrix<br />

Do significant<br />

differences occur?<br />

NO<br />

ACTIVITY TWO: MEASURE ORGANIZATIONAL PERFORMANCE<br />

Compare planned to actual progress toward meeting stated objectives<br />

Do significant<br />

differences occur?<br />

NO<br />

Continue present course<br />

Prepare revised External<br />

Factor Evaluation (EFE) Matrix<br />

Compare revised to<br />

existing External Factor<br />

Evaluation (EFE) Matrix<br />

YES<br />

YES<br />

ACTIVITY THREE:<br />

TAKE CORRECTIVE<br />

ACTIONS<br />

Measuring Organizational Performance<br />

Another important strategy-evaluation activity is measuring organizational performance.<br />

This activity includes comparing expected results to actual results, investigating<br />

deviations from plans, evaluating individual performance, and examining progress being<br />

made toward meeting stated objectives. Both long-term and annual objectives are<br />

commonly used in this process. Criteria for evaluating strategies should be measurable<br />

and easily verifiable. Criteria that predict results may be more important than those that

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