STRAT MAN Module 5

Summary

In this comprehensive exploration of strategic management, GoMoto emphasizes the continuous nature of evaluating strategies. It is crucial not to view strategy evaluation and control as a final step but as an ongoing process that supports organizational adaptation and growth. The transcript details the importance of evaluating strategies based on consistency, consonance, feasibility, and advantage to ensure alignment with a company's goals and the external environment. The strategic evaluation involves reviewing strategy bases, measuring organizational performance, and taking corrective actions.

Highlights

• Strategic evaluation is essential for adapting to both internal strengths and external opportunities. 🌟
• Romance's criteria for evaluating strategies includes consistency, consonance, feasibility, and advantage. 💡
• Evaluation involves continuous review rather than a once-a-year activity. 📅
• Consistency requires alignment of strategies with company goals across all departments. 🤝
• When issues persist despite personnel changes, it's often due to strategy inconsistencies. 🔍
• Consonance ensures strategies adapt to external changes and trends. 📈
• Feasibility looks at resource capability in implementing strategies. ⚙️
• Strategy should lead to a competitive advantage for the company. 🥇

Key Takeaways

• Strategy evaluation is a continuous, ongoing process and not a final step! 🔄
• Evaluating strategies help capitalize on strengths, exploit opportunities, and guard against threats. 🚀
• Key criteria for evaluating strategies include consistency, consonance, feasibility, and advantage. 📊
• Strategic management ensures all departments align with the overall mission, vision, and objectives. 🏢
• Timely evaluations can prevent critical issues by alerting management to potential problems. ⚠️

Overview

The process of strategic management is dynamic and iterative, requiring organizations to perpetually evaluate, adapt, and control their strategies. This module from GoMoto highlights strategy evaluation as a key component of strategic management rather than a static end. By continuously assessing strategies, organizations can leverage strengths, seize emerging opportunities, fend off threats, and mitigate weaknesses before they escalate.

The module emphasizes Romance's criteria for evaluating strategies: consistency with company goals, harmony with external environmental trends, feasibility in terms of available resources, and the ability to secure competitive advantage. These elements ensure that strategies are not only well-formulated but also effectively guide organizational success.

Strategic evaluation is detailed as a multi-step process involving the review of strategic bases, measurement of organizational performance against expectations, and implementation of corrective actions if necessary. GoMoto stresses the importance of using practical tools like SWOT analysis and Balanced Scorecards, and maintaining flexibility in strategic choices to ensure long-term success.

Chapters

• 00:00 - 00:30: Introduction to Strategy Evaluation The chapter introduces the concept of strategy evaluation as the final step in the strategic management process, which follows strategy formulation and implementation. It focuses on strategy review, evaluation, and control.
• 00:30 - 02:00: Strategy Evaluation Framework The chapter titled 'Strategy Evaluation Framework' discusses the strategic management process, emphasizing that evaluation is not a final step but a continuous component. Unlike a common misconception that evaluation occurs at the end of a cycle, this process requires ongoing assessment and reflection to ensure effectiveness and adaptability.
• 02:00 - 03:00: Importance of Effective Strategy Evaluation The chapter titled 'Importance of Effective Strategy Evaluation' underscores the necessity of evaluating strategies that have been implemented. It emphasizes the ongoing need to assess these strategies as conditions require. The key reason for such evaluation is to enable an organization to capitalize effectively on its strategies, ensuring they remain aligned with the organizational goals and external market conditions.
• 03:00 - 10:00: Rummelt's Criteria for Evaluating Strategies The chapter focuses on Rummelt's criteria for evaluating strategies, emphasizing the importance of timely evaluation of internal strengths and weaknesses in relation to external opportunities and threats. Effective strategy evaluation helps in recognizing and defending against threats, exploiting opportunities, and mitigating weaknesses, thereby preventing potential problems from becoming critical. This process is essential for strategic management.
• 10:00 - 15:00: Strategy Evaluation Activities Strategy evaluation helps determine the effectiveness of formulated and implemented strategies. By evaluating strategies, you can ascertain if they contribute to profits or result in unnecessary costs. If a strategy is leading to increased costs rather than profits, it is crucial to discontinue it.
• 15:00 - 19:30: Reviewing Underlying Basis of Strategy The chapter titled 'Reviewing Underlying Basis of Strategy' focuses on the importance of evaluating and possibly reformulating a company's strategy to better suit its goals and circumstances. It introduces the concept of 'romance criteria' for evaluating existing strategies, suggesting that these criteria are essential considerations when reviewing and assessing current strategic approaches.
• 19:30 - 25:00: Measuring Organizational Performance This chapter discusses the criteria for measuring and evaluating organizational performance, specifically regarding strategic goals. Key factors to consider include consistency, consonance, feasibility, and advantage. Consistency refers to the alignment of implemented strategies with the organization's strategic goals, mission, and objectives.
• 25:00 - 35:00: Taking Corrective Actions This chapter emphasizes the importance of aligning strategies with the company's mission and vision. It discusses the foundational role of mission and vision statements in guiding strategic goals, stressing the need for consistency between these elements to effectively direct the company's actions.
• 35:00 - 45:00: Framework for Evaluation Process The chapter titled 'Framework for Evaluation Process' discusses the importance of aligning strategies with an organization's vision, mission, and both short-term and long-term objectives. It emphasizes the need for consistency in strategic goals across departments within an organization. The focus is on ensuring that top management keeps these elements in harmonious alignment to guide the organization effectively.
• 45:00 - 68:30: Effective Evaluation System Characteristics The chapter discusses the importance of consistency and alignment in the strategies of various departments to ensure an effective evaluation system. It emphasizes the necessity of strategies being consistent with each other to achieve organizational goals. The chapter raises questions about identifying problems related to the consistency of strategies and how to determine the root cause of these issues.

STRAT MAN Module 5 Transcription

• 00:00 - 00:30 good day everyone so if you can remember your strategic management process you start with strategy formulation and then strategy implementation and then finally strategy evaluation which which will be our topic for this video strategy review evaluation and control okay before we proceed let me emphasize to you this one
• 00:30 - 01:00 the strategy framework i mean the strategy management process the strategic management process it is not necessary that it ends with evaluation because evaluation does not happen at the does not act in real life evaluation does not actually happen at the end of the year for example it is not it does not happen there it is not necessarily i have to get you evaluate actually from time to time
• 01:00 - 01:30 depending on your strategies what do you evaluate the strategies that you've implemented in independence strategies that new implement you have to evaluate those strategies according to i mean as the need arises and why do you need to evaluate those strategies so here's why effective strategy evaluation allows an organization to capitalize on in
• 01:30 - 02:00 on internal strengths as they develop to exploit external opportunities as they emerge to recognize and defend against threats and to mitigate internal weaknesses before they become detrimental timely evaluation can alert management to problems or potential problems before a situation becomes critical so strategy evaluation plays an important role in the strategic strategic management process because
• 02:00 - 02:30 with strategy evaluation you will know know whether your strategies whether the strategies that you have formulated and implemented are effective because otherwise you know instead of gaining profits because of those strategies you are instead incurring losses no not like loss you are incurring additional costs because of those strategies if that is the case then do not continue with that strategy
• 02:30 - 03:00 or take another course of action make another strategy or make another formulate a different course of action or a different strategy which is which would suit the company better and on that note let me introduce to you romance criteria for evaluating strategies [Music] again these are criterias these are things that you need to consider in look in looking at an existing
• 03:00 - 03:30 strategy you know and to evaluate it these are criteria criteria's the factors that you need to look into for those existing strategies as part of your evaluation so you have consistency consonants feasibility and advantage consistency meaning that the strategies that are being implemented should be consistent to the strategic goals know the mission objectives
• 03:30 - 04:00 the mission and vision of the company the strategies that you will implement should be consistent to those goals that's why at first in the beginning of this course we were trying to come up with our own mission and vision statements as well as our objectives because those things are the foundation of your strategic goals those are actually the strategic goals of the company it will guide the company into the
• 04:00 - 04:30 direction that they want to go to okay that's why the strategies that you will implement along the way for the rest of the years now should be consistent with the strategic goals with the vision the mission and the short-term objectives as well as long-term objectives also in organizations or companies that have different departments now you have to make sure if you are in top management or
• 04:30 - 05:00 or in upke position you have to make sure that the strategies for each department are also consistent that's another thing you have to make sure that they are consistent with each other they have to be aligned okay okay so how do you determine if if there are problems regarding the consistency of your strategies how do you determine how to determine if problems are due to
• 05:00 - 05:30 inconsistency if managerial problems continue despite changes in personnel and if they tend to be issue issue based rather than people based then strategies may be inconsistent [Music] you have a problem knowing and then you change and then the problem persists you know the the issue i mean the problem is still
• 05:30 - 06:00 existing okay then most probably there is inconsistency with your strategy with yours with the strategies that you have implemented with us against your strategic goals um and also if it is issue based rather than people based you know if the problem is issue based more on the issue then perhaps despite
• 06:00 - 06:30 niagara alice then perhaps there is a problem with consistency also if success for one organizational department means or in is interpreted to mean failure for another department then strategies may be inconsistent okay if one department in your company for a particular task will succeed
• 06:30 - 07:00 but on the other hand in that same particular task the another department will fail okay because of that particular task and there are inconsistencies with their strategies okay in short if the success of one department is at the cost of the failure of another department then that's the case there is inconsistency with their strategies another is if public policy problems and
• 07:00 - 07:30 if policy problems and issues continue to be brought to the top for resolution then strategies may be inconsistent okay name up policy problems no coming from the lower level management if there are policy problems no and issues that continue report setup management okay okay the report reports attack management
• 07:30 - 08:00 the address i mean solution and then a week after the same problem arises no there must be a problem with the consistency again of the strategies consonants consonants refers to the need for strategists to examine sets of trends as well as individual trends in evaluating strategies strategy must represent an adaptive response to the external
• 08:00 - 08:30 environment into the critical changes occurring within it consonants meaning the strategies that you have implemented must be inconsonants with what is going on in the external environment in consonance meaning it must be in harmony in agreement must be compatible with what is going on in the external enviro environment that is why also it is very important in coming up with your strategies you have to make the swot metrics
• 08:30 - 09:00 so that you will know the internal as well as the external environment of the company because if you are making strategies that do not address the things that are going on in the external environment and that is not in consonance the strategy that you are implementing is not in consonance with the external environment so take note of that the strategies that you are trying to implement should be in consonance with sets of trends as well as the
• 09:00 - 09:30 individual trends in the external environment feasibility the strategies that you are currently implementing should be feasible meaning can the strategy be attempted with the physical human and financial resources of the enterprise kayabab [Music] is it still feasible for the moment
• 09:30 - 10:00 that you are evaluating and advantage of course advantage this is the purpose of strategic management competitive advantage whether the strategy that you have implemented or is currently implementing brings the company to a strategic advantage did it bring the company to a strategic advantage okay a strategy must provide for the creation and or maintenance of a competitive
• 10:00 - 10:30 advantage in a selected area of activity so does that strategy bring the company to a competitive advantage so that's romance criteria for strategy evaluation so you have to look at those four things you have to consider those four things during your evaluation you know you have to look at your strategies in those four areas consistency consonants visibility and
• 10:30 - 11:00 advantage okay so how do you conduct your strategy evaluation so these are actual activities i am tempted to call it step one step two step three but the ghana cayota step steps so let's just call this as activities okay so these are the different strategy evaluation activities that you have to do during your evaluation
• 11:00 - 11:30 activity one that is your you review the underlying basis basis that's the plural of basis okay basis review the underlying basis of strategy take note you are in the evaluation stage so presumably you already have basis for strategy [Music] implement
• 11:30 - 12:00 okay so what are those that that includes your your metrics you know your your ife and efe matrix i think this is the first time that i mentioned in this class but actually your ife meaning internal factor evaluation matrix in your efe your external factor evaluation matrix those are things which are already included in the source matrix ife internal factory evaluation you
• 12:00 - 12:30 evaluate the internal environment which we have already done with our swot matrix your efe external factory evaluation we have already done that also okay so basically you analyze [Music] [Music]
• 12:30 - 13:00 strategic
• 13:00 - 13:30 [Music] so you have to review that that's how you review the underlying basis of strategy okay that's your activity one activity two you measure organizational
• 13:30 - 14:00 performance so you compare the expected results when you formulated your your strategies of course you will expect the results there are expectations there okay my increased profits to 30 okay with the strategies i knew we formulate before will that reduce reduce costs to for example 50 example
• 14:00 - 14:30 for example okay that's your expectation and then you have implemented implemented implemented now that you are trying to evaluate so you have to check whether the expected results in the beginning forecasting results is how is it compared to your actual results
• 14:30 - 15:00 so you have to check you have to compare the expected results with the actual results so for this reason you will utilize the learnings in your financial management okay because you will be dealing with numbers here you cannot measure without the use of on quantitative techniques although there are some qualitative techniques for measuring
• 15:00 - 15:30 organizational performance but usually you know top management or the people who are interested with the evaluation are more interested with the numbers they want to see numbers okay they want to see the performance according to in the in terms of monetary value okay so basically that's activity 2 measure organizational performance
• 15:30 - 16:00 activity 3 so you take corrective actions after okay after mimo review on underlying underlying basis after a new moon measure an organizational performance a result you take corrective actions okay to ensure that performance conforms to the plans take corrective actions whether it's a strategy okay or a
• 16:00 - 16:30 improvement strategy or a continuing strategy okay depending depends as it was shown so you take corrective actions okay okay someone is here chart key flow chart okay so this is how your thought process should be during the evaluation stage activity one is here reviewing underlying basis of strategy
• 16:30 - 17:00 okay activity one activity two is here measure organizational performance and activity three insane take corrective actions is here that's here so activity one activity two activity three again so first activity one you review the underlying basis of strategy so for this purpose it is suggested that you prepare the ife matrix internal factor evaluation matrix you prepare a new
• 17:00 - 17:30 okay a revised also you also you also prepare a new revised external factory evaluation matrix okay as we have we haven't discussed this no but basically this is just similar to your external analysis and internal analysis moto goodness either are just factors no there are weights that you put into those items but also for this purpose you can
• 17:30 - 18:00 utilize your swot metrics now your external and internal evaluations your your strengths opportunities weaknesses and threats evaluation you can also make use of that or whatever tools that you have used in in as basis of your strategy so what you will do okay you revise whatever tools that you've used now you revise you you make another
• 18:00 - 18:30 set of analysis using those tools that you have used as basis of your strategy in the planning evaluations uh planning formulation stage okay after you have made a revised version of those things revised okay considering the current situation you then compare the revised the the revised analysis to the existing
• 18:30 - 19:00 existing meaning but formulates okay so you make use of you compare the revised and you compare it with okay not necessarily the e f e i f e matrix
• 19:00 - 19:30 whatever tools when you commit as basis of your strategy so you just basically compare the revised one that you've made during your evaluation you compare it with the ones that you've made it's a new formulation or strategic planning okay and then you answer this question does a significant difference
• 19:30 - 20:00 if there is a difference if there is a difference then you proceed you take corrective actions okay if there is a difference if there are no difference meaning okay you proceed to activity two okay you measure organizational performance based on those strategies and say effect atomic strategies
• 20:00 - 20:30 so you compare the actual progress towards meeting the stated objective you just simply compare the expected results versus the actual results [Music] and then you answer this question does a significant difference occur is there a significant difference with the expected results and the actual results the on the parentia if yes then you take corrective actions okay if no walleye differential while i
• 20:30 - 21:00 expected results and actual results if there are no difference or there is no significant difference you just continue with those strategies you continue the present course you continue with those strategies so basically that's how the thought process know that that's how your thought process should be during the evaluation stage okay you first activity one you review
• 21:00 - 21:30 the underlying basis if there are no if there are significant differences with your underlying with your underlying basis of strategy you take corrective options if there are no significant p differences you proceed to activity two you measure their organizational performance meaning you measure the expected results the actual results from your expected results and if there is a significant difference
• 21:30 - 22:00 you again take corrective actions if there are no significant differences you continue with that strategy okay so let's go into detail in activity one reviewing the basis of strategy now you can for that purpose you can you take make use of these uh matrix no the possible situations where in i mean the possible combination of
• 22:00 - 22:30 situations wherein you have to make something you know the possible situations during while you are reviewing the basis of strategy so these are the major things that you have to look into when you are reviewing the basis of strategy you have to consider how major changes occurred in the firm firm's internal strategic position also you have to consider how major
• 22:30 - 23:00 changes occurred in the firm's external internal this time external strategic position and also this question has the firm progressed satisfactorily towards achieving its stated objectives so these are the possible situations no one say possibly might have or possibly a immune analyze during your evaluation when you are reviewing the basis of strategy so if there is no major change
• 23:00 - 23:30 in the firm's internal strategic position and there is no no major change as well as in the external strategic position however the firm has not satisfactorily progressed towards achieving his stated objectives then you should most probably take corrective actions although well i changes so internal and external strategic
• 23:30 - 24:00 position but it did not progress the firm did not progress towards achieving stated objectives most probably you should take corrective actions this uh by the way class as a warning this is not a hard and fast rule because there are other factors that you need to consider that's why most probably you take corrective actions okay but you also have to consider other things okay another situation or another possible situation
• 24:00 - 24:30 there is a change yes in the internal strategic position there is also a change in the external position even if yes not progressively satisfactorily towards achieving achieving their stated objectives but there are changes in the internal and external environment you should most probably take corrective actions okay because there are changes in the internal and external environment also another possible situation there
• 24:30 - 25:00 are changes yes in the internal environment there are also changes in the external environment but no the company and also no i mean the company did not progress satisfactorily towards achieving stated objective this time obviously you will have to take corrective actions there are changes in the internal and external environment and you have not achieved your satisfactory you have not satisfactorily
• 25:00 - 25:30 achieved your stated objectives so you have to take corrective actions in this case okay another case okay there is a change in the internal environment but there is no change in the external environment okay even if you have progress towards achieving your stated objective you ma you sh you may or you most probably again should take corrective actions
• 25:30 - 26:00 okay uh another uh yes there are changes in the internal environment even if there are no changes in the external environment but now you have not satisfactorily progressed towards your achieving your stated objectives again take corrective actions no changes in the internal environment there are changes in the external environment even if you have progressed
• 26:00 - 26:30 satisfactorily towards achieving your stated objectives you also take corrective actions so those things though what what situation is best for the company is this there are no changes in the internal strategic position in the firm's internal strategic position there are no changes also in the external strategic position and yes
• 26:30 - 27:00 the firm has progressed satisfactorily towards achieving the stated objective then in that situation no no yes continue with the present strategy course continue with that strategy continue that strategy okay all the rest all the other situation all the other combinations of those situations you take corrective actions also these are things that you during your
• 27:00 - 27:30 evaluation when you are reviewing the basis of strategy you have to ask these things okay are we are are our are our internal strengths still strengths have we added other internal strengths if so what are they are our internal weaknesses still weaknesses do we now have other internal weaknesses if so what are they are our external
• 27:30 - 28:00 opportunities still opportunities okay are now are are there no other external opportunities if so what are they okay are our external threats their threats are we now are there now other external threats if so again what are they are we vulnerable to a host hostile takeover who still take over what is this just like what happened to the mcdonald's brother in the movie the founder of when reykja took over
• 28:00 - 28:30 their business that's a hostile takeover hostile meaning unfriendly daily friend linga take over okay is your company vulnerable to a hostile takeover you have to ask that question you know when you review the basis of strategy measuring organizational
• 28:30 - 29:00 performance okay this is activity 2 okay you are comparing expected results to actual results as i mentioned earlier you are investigating deviations from plans evaluating individual performance and examining progress being made toward meeting stated objectives so criteria for evaluating strategies should be measurable and easily
• 29:00 - 29:30 verifiable [Music] so here is an example you know of a framework for measuring organizational performance knowing the factors in sangha areas in this case example this is not the this is not how you should do it but you may use this but this is just an example so factor
• 29:30 - 30:00 and say now for example you want to look at the corporate revenues in the corporate level overall so you look at the up to enlist the actual result corporate revenue expected forecasted new planning stage pillar variance the difference the difference what is the actual and then the expected
• 30:00 - 30:30 result so perhaps the eu deduct or depending on actual minus expected equals variance b live variance differential and then the action needed inside the move button say that in your button as a company okay so for again for corporate profits you write you list the i mean you you put here the actual results pillar and actual profits actual corporate profits and then the
• 30:30 - 31:00 expected corporate profits again from the forecasts budgets okay and then the variance again the difference and then the again the actual needed we corporate roi uh return on investments what is that uh you know that in your financial management okay the actual again then they expected the variance and the action needed if you want to look at the per region or or per department or
• 31:00 - 31:30 whatever okay bus your corporate office is in makati and you have different sbus remember the discussion in sbu strategic business units they have their own revenues okay so you look at the sbu for the let's just call it sbu one business unit one you look at the revenues of business unit one and then so on and so forth business unit two or three
• 31:30 - 32:00 region two just the same so basically what you're just trying to do as i repeated it many times already you just compare the actual results from the expected results and then you make appropriate actions that's how you measure organizational performance okay activity taking corrective actions okay and here are some no some lunging
• 32:00 - 32:30 class this is not everything this is not every corrective action these are just some of the corrective actions that you can do in case you want to take corrective action so you can alter the firm structure you change the organizational structure or whatever structure that is in place in your company you can change it you can alter it okay you can also replace one or more key individuals
• 32:30 - 33:00 [Music] in charge department and a problem as a strategy okay you are listening [Music] you replace one or more individuals individuals you divest a division you can also divest a division you division
• 33:00 - 33:30 remember the discussion on um organizational structures you can divest a division meaning you can remove that division if kailang and you'd you can also alter the firm's vision and or mission remember before i've told you that that as much as much as possible a change and you you make a vision and mission statement your daily change okay that's code encode
• 33:30 - 34:00 as much as possible class because there are instances change the vision and mission statements you can alter it to fit to the to the current trends into the external enter to the external
• 34:00 - 34:30 situation you can also revise the objectives you can alter strategies you can change the strategies you can device new policies you can install new performance incentives meaning you this is more unrelated with your human resource okay you can increase or make new incentives know
• 34:30 - 35:00 you can give incentives for that in helping you achieve whatever it is that you want you can raise capital with stock or debt as you have learned in your financial management your source of funds what are your source of funds that is your
• 35:00 - 35:30 liabilities or your equity you know that's why you have assets is equal to liabilities plus equity or capital so you can raise capital or you can raise your assets your you can raise your equity by issuing more stocks if you're a corporation or mango tango you can borrow money if the need arises okay also you can add or terminate
• 35:30 - 36:00 sales persons employees or manager okay before schools comes to worst you can terminate people but take note in the philippine setting as you will learn in your human resource management you cannot just immediately fire people you know unlike the situation in your
• 36:00 - 36:30 you're fired but you cannot do that here in the philippines you there is a process that that employers should follow there are notice that you cannot immediately terminate people okay but but but for our purposes of our discussion but for for purposes of our discussion bottom line is you can actually
• 36:30 - 37:00 terminate but there is a process so you can terminate salespersons employees or managers or you can also add you can hire more depending again on the situations because we are just talking about the possible corrective actions that you will be making okay you can also allocate resources differently you can you can change the budget in your own budget coordinate musa finance or say in your accounting department now you can
• 37:00 - 37:30 change the budget more onboard for example research and development for example so you can alter that [Music] or you can outsource business functions again as i've mentioned usually among a bpo business process outsourcing functions which are related to the support activities in your value chain
• 37:30 - 38:00 gaming and essential non-core activities you can outsource it you can hire busy uh you can contract dpos business process outsourcing or there is a new trend now the upwork upwork online jobs you can hire those people not necessarily hiring because that's contracting no they are not your employees if you are the if you are the
• 38:00 - 38:30 job i mean the person who needs if you are the one who needs someone to work okay you are not actually hiring the people in upwork or in freelance they are not your employees just that that is a contracting language okay there is no employer employee relationship rated but depending again so
• 38:30 - 39:00 another course of action that you can consider is you can outsource business functions okay so that's the basically the framework you know of your evaluation also here is a tool now which you can use as your evaluation tool learning class this is not part of your evaluation process or you can use this as part of your evaluation process this
• 39:00 - 39:30 is just a tool the balanced scorecard there is a video that i've uploaded please look at that video for those who are not well acquainted what a balanced scorecard is that's a very good video it has discussed the person in the video discussed fairly and simply the what a balanced scorecard is so please look at that and here is an example of a balanced scorecard also you have to take note okay
• 39:30 - 40:00 most books okay and the video also that i've given they are saying that there are four areas that you need to consider in the balance scorecard that is your the the customer's perspective the internal processes the learning and growth as well as the financial perspective those four areas okay but as you have noticed in this example there are one two three
• 40:00 - 40:30 four five six areas being looked into in the balance worker and then you will ask actually the the areas no the areas or the factors that you can consider in the balance scorecard will vary depending on your company but those four major areas the uh customer perspective the finance perspective the internal processes
• 40:30 - 41:00 as well as the learning and growth those areas must be present in the balance scorecard in this case okay so characteristics of an effective evaluation system so what does an effective evaluation system look like it must be economical too much information can be just as bad
• 41:00 - 41:30 as too little information and too many controls can do more harm than good it should be economical it should also 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 it should also provide timely information okay the time dimension of control must go
• 41:30 - 42:00 inside with the span of the event being measured also an effective evaluation system should provide a true picture of what is happening and it must not dominate decisions it should foster mutual understanding trust and common sense the test of an effective evaluation system is its usefulness and not its complexity okay you don't have to make an evaluation
• 42:00 - 42:30 which is very complicated okay the simpler it is the better what is important is that the evaluation system is useful to your company okay that even a low-rank employee can understand the evaluation system or the result of your evaluation okay sometimes
• 42:30 - 43:00 everyone will be guided everyone will then be aware of the situation of your company so that's it