Strategy evaluation is the final stage in the strategic management process; it is the primary means of determining the effectiveness of the strategic management process. Effective strategy evaluation involves three fundamental activities: (1) reviewing internal and external factors that are the bases for the current strategies, (2) measuring performance against stated objectives, and (3) taking corrective action.
What this three-step sequence of activities reveals is that strategy evaluation is a process that leaders use to assess the effectiveness of an organization’s strategy used to achieve its objectives.
A popular tool used to measure the effectiveness of the strategic management process is the balance scorecard.The balance scorecard translates mission and vision statements into a comprehensive set of objectives and performance measures that can be quantified and appraised.