Strategic Audits for Continuous Business Improvement by Chang Parbatee

Author:Chang, Parbatee [Chang, Parbatee]
Language: eng
Format: epub
Published: 2016-06-04T16:00:00+00:00

Objectives

The objectives emanate from the mission. In order to conduct the Strategic Audit, it is significant for the objectives to be specific, relevant, and set within a time frame for accomplishing them.

Are these key objectives translated throughout the organization, so that each person or employee knows how performing his or her job helps the business or the organization achieve its objectives?

In other words, are the objectives explicit, or are they vague or hidden?

Are the objectives really suitable to the business, or are they over optimistic?

Are they designed to only meet the needs of top management and shareholders?

Are they designed in such a manner that there’s no way to determine whether they are being achieved?

Only when management and staff understand the objectives, will they be able to become more committed to ensuring that the objectives are achieved.

The objectives need to be measurable so that the level of achievement can be measured.

Are the objectives related to the failures in previous years, or are they based on benchmarks related to the successes of the competition?

Are the objectives quantifiable and measurable?

If the business has specific objectives, because of the change in the environment, do they limit flexibility and responsiveness?

Do the specific objectives hinder creativity and innovation?

Very importantly, do the specific objectives give more information to the competition?

When the objectives were developed, did the organization take into consideration contingencies to address the impact of the political, economic, social, and technological issues? This is of extreme significance in challenging times, for example, the impact of a declining economy.

How do they assess whether the business is doing well and what criteria was used to relate to doing well?

Were measures based on gross sales, profits, level of service, or market share?

Has the business used its strengths to identify and build its opportunities while warding off the threats facing the business?

Does the business have a policy of reviewing its strategic plan annually and, if necessary, changing the objectives, in view of dynamic changing circumstances?

The Strategic Audit will also facilitate the determination of the following:

Is there a clear understanding and appreciation of the values of the organization and where the business plans to be in the future?

Are the objectives realistic? Do the objectives focus on profitability, revenue, customer attraction and retention, increasing market share, establishing additional locations? In other words, do the objectives focus on growth opportunities?

Are the resources adequate and appropriate to achieve the objectives?

Is the business achieving its objectives with economical use of resources?

Does the business have the ability to adapt to the changes in the economy?

Depending on the nature of operations of the business, whether service or product oriented, there may be specific objectives that focus on the business as a whole, as well as those that focus on marketing and promotions.

The Strategic Audit requires the organization to review the existing objectives and determine the level of appropriateness, taking into consideration the impact of the external environment on the business. When we mention the external environment, we are specifically looking at the economic, political, social and technological issues that impact the stated objectives of the organization.

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