In order to better understand what strategic control performance measures are and how a manager can take such measurements, we need to introduce two important topics: (1) strategic audits and (2) strategic audit measurement methods.
A strategic audit is an examination and evaluation of areas affected by the operation of a strategic management process within an organization. A strategy audit may be needed under the following conditions:
- Performance indicators show that a strategy is not working or is producing negative side effects.
- High-priority items in the strategic plan are not being accomplished.
- A shift or change occurs in the external environment.
- Management wishes: (1) to fine-tune a successful strategy and (2) to ensure that a strategy that has worked in the past continues to be in tune with subtle internal or external changes that may have occurred.