Effectiveness of Strategic Management

I.
Introduction
To measure the effectiveness and efficiency in an organization strategy, you have to examine how it
links your objectives to the way you plan to achieve them and the means you plan to use. A strategy is
effective if it uses the resources you allocate according to your plan and delivers the expected results.
You have to continually evaluate use of resources and performance to check if your strategy is hitting
your targets.
II. Objectives
The learners must be able to:
 Understand the Effectiveness of Strategic Management in an organization
 Apply Strategic Management in their workplace someday
 Analyse the effectiveness of Strategic Management
III. Pre Test
(to be posted later)
IV. Discussion
EFFECTIVENESS OF STRATEGIC MANAGEMENT
Alli (1992) stated following attributes of an effective strategic management:

 Clear direction and purpose
 Objectives, goals, and strategic consistency
 Continuous monitoring of internal and external (environment)
 Integration of operating budget and profit plans with strategic plan
 Continuous monitoring of progress with revision of plan and programs as appropriate
 Creation of strategic atmosphere that foresters a team spirit
 Commitment of necessary resources and the development of system to provide necessary
management information.
 Fundamentally, there are three major viewpoints to understand strategic management efficacy in
management studies.
First is the use of goal cantered approach to gauge organizational effectiveness. In this situation, individual
organization scrutinizes the extent of completion of important planning objectives. Theorists like Cameron
and Whitton (1983), King (1987) and Steiner (1979) supported this statement.
Secondly, specific capabilities to develop a 'generic view' if system capabilities as stated by Lorange (1979)
a generic capability required of every formal strategic planning system is the ability to persuade both
creativity and control (Camillus 1975). In this viewpoint, creativity and control are used as requisite
properties of a successful planning method.
The third perspective usually scrutinizes the role and impact of corporate planning on organizational
efficacy. Although, the link may be quite difficult however, there are strong arguments that the crucial test of
the system's effectiveness and rationalization for its existence is the impact on organizational performance
(Henry 1979).
Develop Measurable Strategies
To determine if a strategy is effective, you have to be able to measure its performance and check
whether it will achieve your company's objectives. The criteria of efficiency and effectiveness is critical.
For example, if your strategy is to develop a new market, you have to include a specific goal and a way
to measure how many of the members of the new market are buying your products. The Office of
National Drug Control Policies emphasizes the importance of determining what constitutes success in
strategy completion. If you need a strategy to improve customer service, you have to include a target,
such as percentage of customer issues resolved to the customer's satisfaction, and a way to measure
progress, such as customer surveys.
Measure Variables During Implementation

To monitor the effectiveness of your strategy, you have to establish base values from before strategy
implementation and track your progress. TSI Consulting discusses the importance of evaluating your
progress and pivoting, when necessary. For your measurements to be useful in a continuous evaluation
of strategy effectiveness, the targets have to be achievable and relevant to the strategy, and the results
must be available in a timely fashion so your evaluation is current. For example, you can implement a
strategy to increase sales by 1,000 units over three months from a present level of 8,000 units. The sales
values are specific and relevant, and you can measure them rapidly to get up-to-date results.
Continuously Evaluate Performance

Specific targets made up of measurable variables let you track results continuously to make sure the
strategy is performing adequately. If actual results show lagging performance, you have time to add
resources, adjust your operations or take other corrective action. The adjusted strategy is often less
effective than originally planned because it may consume more resources. A continuous evaluation lets
you decide whether to keep implementing the strategy in the face of the changes or to develop a more
effective approach.
Review Effectiveness Of Objectives

Once your strategy is fully implemented, you can you can evaluate its overall effectiveness in
management by asking to what extent it reached the goals you set with the resources you allocated. If
your strategy didn't reach its objectives or used up additional resources, you have to determine where
your strategic plan failed. The results of a strategy may be below expectations if the strategy was not
aligned with company strengths or if the objectives were not attainable. In any case, completion of a
strategic plan leaves your company in a new situation, and a review lets you continue with either an
effective strategic plan or with one that includes changes to avoid past mistakes.
V. Post Test
In a whole sheet of bond paper, write/encode the brief summary of Strategic Management. You
can base your output from Prelim, Mid Term and Finals. Minimize your output for 2 pages only.
Send to [email protected].
Format in Sending
Subject: Strategic Management
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I.

EFFECTIVENESS OF STRATEGIC MANAGEMENT

Alli (1992) stated following attributes of an effective strategic management:

Measure Variables During Implementation

Continuously Evaluate Performance

Review Effectiveness Of Objectives

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