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.
Assessing The Firm's Operational And Strategic Health
To aid in control, firms will occasionally perform audits to ensure that certain aspects of their operations are in order. Such audit may include operational audits (assessing the firm's operating health) and strategic audits (assessing the firm's strategic health).