Developing ethical business strategies
A CIMA case study

Page 5: Evaluating business strategies

Cima 18 Image 8Whatever business strategy is chosen, its progress will need to be checked and its outcome and effect evaluated. This is often done against KPIs (key performance indicators). These are set as targets by organisations so that they can not only monitor progress, but tie progress (or lack of it) to specific areas or processes. The distance between actual achievements and KPIs will show managers exactly how well a strategy is playing out, and in what areas changes need to be made. If targets are not met, managers will then need to establish why. Possible reasons for a strategy not being achieved include:

  • the objectives may have been too ambitious
  • the corporate culture may need changing
  • the strategy may have been poorly communicated
  • the plan may have been poorly executed
  • there could be changing external factors outside of the control of the business.

Changes in external factors can have a huge impact on a strategy so these need to be regularly monitored. This allows a business to identify problems and change its tactics quickly so that the objectives are still achieved. Evaluating plans provides data that is vital in setting future strategies.

Chartered Institute of Management Accountants | Developing ethical business strategies


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