BUSINESS STRATEGY

CONTENT 4
STRATEGY IMPLEMENTATION

HANDOUT - 17
Faculty: ALI AL ASMI

Ali.alasmi @ cbo.gov.om
kakaaami@gmail.com

What do we discuss in
Handout 17?
Review and Evaluation

An evaluation of the benchmarked outcomes in a

given time period in relation to corporate,
operational and individual targets using SMART
principles

Ali.alasmi @ cbo.gov.om
kakaaami@gmail.com

Review and Evaluation

Desirable factors for organisational performance
Effectiveness - market share, quality of product,
financial performance
Efficiency - materials usage, energy usage, speed,
wastage, customer enquires, orders
Economy - cost per unit, contribution per unit
Elegance - appearance of staff, premises, punctuality,
professionalism
Ethical - Corporate social Responsibility (CSR),
Governance
Ali.alasmi @ cbo.gov.om
kakaaami@gmail.com

Review and Evaluation

Performance Indicators

Financial Indicators:

Profitability and value added

ROCE or ROI
Survival or Growth
Growth in EPS (Earnings after tax/no. of Shares)

Non -Financial Indicators:

Maintenance of product /service quality

Goodwill and Innovation
Ability to attract skilled labour
Organisations systems management
Social Responsibility of the organisation
Ali.alasmi @ cbo.gov.om
kakaaami@gmail.com

Review and Evaluation

Step I: Unit objectives should be set
first of all in terms of primary targets.
Some examples are:
Profitability
Level of activity /turnover
Achievement of production and
delivery dates
The quality of output or services
Safety
Efficiency in resources utilisation
(labour productivity, material usage)
Ali.alasmi @ cbo.gov.om
kakaaami@gmail.com

Review and Evaluation

Step II: For each of these primary
targets, secondary targets (sub-targets)
will be set. Some examples are:
Profitability the contribution required
from each individual product, and the
method of fixed overhead allocation
Quality of product The acceptable
level of rejected units
Ali.alasmi @ cbo.gov.om
kakaaami@gmail.com

Review and Evaluation

Step III: Identify which individual
managers within the unit are in a
position
to
influence
the
achievement of each of them
Step IV: Top management will then
make a unit improvement plan for
each unit of the business, setting out
specifically
the
objectives
for
improvement,
the
performance
standards and the time scale. Key
Ali.alasmi @ cbo.gov.om
kakaaami@gmail.com

Review and Evaluation

Step V: The unit improvement plan is
then broken down into a series of
key
results
and
performance
standards required from the various
individual mangers within the unit. For
example, the key results of an
information
systems manager
might be
Item
Key result
Service to as below:
To ensure that users get regular software upgrades
given
users

with appropriate help lines and training

Use of
resources &
efficiency level

The time when users cannot use the network must

not exceed 5%

Costs

The cost per operating hour must not exceed 60

Quality

Queries from
users
must be responded within 10
Ali.alasmi
@ cbo.gov.om
minutes kakaaami@gmail.com

Review and Evaluation

Step
VI:
A
personal
job
improvement plan should be agreed
with each manger, which will make a
quantifiable
and
measurable
contribution to achievement of the
plans for the department, branch or
company as whole, within specified
time periods
Step VII: A systematic performance
review of each managers results is
Ali.alasmi @ cbo.gov.om
kakaaami@gmail.com

Objectives
SMART
Specific with regard to what is intended
Measureable based upon performance criteria that can be used to
judge whether the objectives are being achieved according to plan
Agreed with the people responsible for achievement
Realistic/relevant to the needs of the organization and the people
involved, and capable of being achieved within the time and
resources available
Timetabled set to a timetable that will give signposts for fulfillment
and a final date for completion
Ali.alasmi @ cbo.gov.om
kakaaami@gmail.com

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