`Strategy Evaluation` is part of strategic management. Rather, a most vital and critical part.
Evaluation is necessary to know where we stand in relation to the strategy formulation and its implementation.
Evaluation is the ultimate purpose of all strategies for taking corrective action towards achieving the Company’s objectives.
It is a changing world. There is constant change happening with (internal) and without (external) the Organization. While internally it is under our control, externally things are beyond our control. How do we balance these and succeed is the crux of an Organization’s capability and its strategies.
Based on the `evaluation`, if the Company’s objectives are achieved or not, the strategy formation need to be redesigned to suit the newer circumstances.
The process of `strategy evaluation` is continuous and dynamic. All the principles or ingredients of strategy formation and its implementation are inter-related and changing. The evaluation must integrate all these factors for better performance in the future.
There are also management models and tools which help `evaluate` the success or failure of the strategies.
The function of `evaluation` is to ensure strategies and their implementations meet the objectives by making necessary changes in the strategy taking various organizational factors into account.
The strategy evaluation has to assess the performance vis-à-vis strategic formation of various departments, managers and the other groups involved.
`Evaluation` has to be intensive against the benchmarks or targets set forth, and requires a thorough knowledge of the Company’s systems by the manager or the one who evaluates. Some time one may require the expertise of an external management consultant to evaluate the results properly against the norms.
Hence `Strategy Evaluation` is the decisive final analysis to realize how far our strategies and its people have succeeded in the implementation of the Company’s objectives.