Once implemented, the results of the strategy need to be measured and evaluated, with changes made as required to keep the plan on track. Control systems should be developed and implemented to facilitate this monitoring. Standards of performance are set, actual performance is measured, and appropriate action is taken to ensure success.
The strategic management process is dynamic and continuous. A change in one component may require a change in the entire strategy. As such, the process must be repeated frequently in order to adapt the strategy to environmental changes. Throughout the process the company may need to cycle back to a previous stage and make adjustments.
Evaluation and control consists of the following steps:
- Define parameters to be measured.
- Define target values for those parameters.
- Perform measurements.
- Compare measured results to predefined standard.
- Make necessary changes.