Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e

Characteristics of an Effective Strategy Evaluation System

The strategy-evaluation process must exhibit several characteristics to be effective. First, strategy-evaluation activities must be economical; too much information can be just as bad as too little information, and too many controls can do more harm than good. Strategy-evaluation activities also should be meaningful; they should specifically relate to a firm’s objectives. They should provide managers with useful information about tasks over which they have control and influence. Strategy-evaluation activities should provide timely information; on occasion and in some areas, managers may need information on a daily or even continuous basis. For example, when a firm has diversified by acquiring ...