What is an evaluation of a strategic plan?

Navigating the strategy maze: Why and how to evaluate your strategic plan

Picture this: You've put together a strategic plan that's as detailed and ambitious as a blueprint for a moon landing. But here's the kicker – how do you ensure this plan isn't just a piece of high-fantasy fiction for your business? That's where the art and science of evaluating your strategic plan come into play. It's about making sure your strategy isn't just good on paper but is actually taking you where you need to go.

What does the evaluation of a strategic plan mean, really?

Think of evaluating your strategic plan as doing a reality check. It's about diving deep into what you've done, measuring it against what you hoped to achieve, and being brutally honest about what worked and what didn't. This isn't just ticking boxes next to your goals; it's about assessing if your strategic moves are truly aligning with the big-picture objectives, understanding the impact of your actions, and recalibrating your course as needed.

Why bother with strategic plan evaluation?

Simple – because you don't want to blindly follow a map that leads nowhere. Regular evaluations keep you agile, allowing you to pivot as needed in response to unexpected challenges or new opportunities. They help ensure your resources are spent wisely, foster a culture where everyone is accountable for outcomes, and ultimately, keep your business competitive and on track for success.

Timing is everything: When to evaluate your strategic plan

The million-dollar question is, when do you actually sit down to do this evaluation? Well, it's not a once-a-year, end-of-the-year kind of deal. Strategic plan evaluation is more of a pulse check that should happen at key moments:

Before full implementation: Once your plan is laid out, do a preliminary review before you go full steam ahead. This is a sanity check to ensure everything aligns and is feasible.
During implementation: Schedule regular check-ins, perhaps quarterly or even monthly, depending on the pace of your operations and the dynamics of your industry. These check-ins allow you to adjust tactics in real time, responding to internal shifts or external market pressures.
After major milestones: Whenever you hit a significant milestone, pause and evaluate. This could be after launching a new product, entering a new market, or at the end of a major campaign.
End of the strategic period: When your strategic timeframe has concluded, conduct a thorough evaluation to gather insights for future planning. This is about learning from your journey – the good, the bad, and the ugly.

The how: Evaluating your strategic plan in 5 steps

Set clear metrics: Define what success looks like with specific, measurable goals.
Gather your data: Look at your performance, gather feedback, and get the numbers.
Compare reality to goals: How did you actually do compared to what you hoped to achieve?
Listen to the crowd: What are your customers, employees, and stakeholders saying? Their feedback is gold.
Plan your next moves: Based on your findings, what needs to change, continue, or stop?

Frameworks to guide you

Pick your evaluation toolkit wisely. Whether it's the Balanced Scorecard for a 360° view, SWOT Analysis for a quick health check, or PESTEL Analysis for scanning the external environment, each framework offers unique insights to help steer your strategy in the right direction.

Let's delve into the details of the Balanced Scorecard, SWOT Analysis, and PESTEL Analysis to understand how they can illuminate different aspects of your strategic journey.

Balanced Scorecard: A 360° view on performance

The Balanced Scorecard is your go-to for a comprehensive, bird's-eye view of your organization. It breaks down your strategic objectives into four key perspectives:

Financial: How do we look to our shareholders? This perspective focuses on financial performance metrics such as revenue growth, margins, and return on investment (ROI).
Customer: How do our customers see us? Here, you measure customer satisfaction, retention, and market share.
Internal Processes: What must we excel at? It evaluates the efficiency and effectiveness of the processes that create value for customers and shareholders.
Learning and Growth: Can we continue to improve and create value? This angle looks at the organization's ability to innovate and improve, measuring employee satisfaction and retention and the pace of improvement in internal processes.

Using a balanced scorecard template, you can ensure that your strategic plan addresses all critical aspects of your business, not just the bottom line.

SWOT Analysis: Identifying strengths, weaknesses, opportunities, and threats

SWOT Analysis is like taking a hard, honest look in the mirror. It helps you understand your organization's internal strengths and weaknesses, external opportunities and threats. Here's how it breaks down:

Strengths: What advantages does your organization have? Consider your unique resources, capabilities, and technology.
Weaknesses: What areas need improvement? Look at the gaps in your resources, processes, or capabilities.
Opportunities: What external factors can you leverage? Think about market trends, regulatory changes, or technological advancements that could benefit your strategy.
Threats: What challenges could you face? These could be competitors, economic downturns, or changes in consumer preferences.

By conducting a SWOT Analysis, you can craft a strategy that plays to your strengths, addresses your weaknesses, capitalizes on opportunities, and mitigates threats.

PESTEL Analysis: Scanning the external environment

PESTEL Analysis allows you to scan the horizon for external forces that could impact your strategy. It stands for:

Political: What political factors could influence your strategy? This includes government policies, trade restrictions, and political stability.
Economic: How do economic growth, exchange rates, and inflation affect your business?
Social: What social trends could impact your strategy? Demographic shifts, lifestyle changes, and consumer behaviors fall into this category.
Technological: How could technological advancements or disruptions affect your business?
Environmental: Could environmental concerns (like climate change or sustainability issues) influence your strategy?
Legal: What legal and regulatory frameworks could impact your operations?

PESTEL Analysis helps you anticipate external changes, ensuring your strategy remains relevant and resilient in the face of uncertainty.

By employing these frameworks, you can gain a multi-dimensional view of your strategic plan's performance. Each framework offers unique insights, helping you identify where you excel and where adjustments are needed. Whether looking at the broad picture with the Balanced Scorecard, taking a reflective look with SWOT, or scanning the horizon with PESTEL, these tools empower you to evaluate and refine your strategic plan effectively. Remember, the goal is not just to execute a strategy but to navigate your business toward long-term success and resilience.

Why Miro is your strategic planning tool

And here's where Miro comes into play. Imagine a strategic tool that helps you map out these sophisticated strategic plans and becomes your central hub for ongoing evaluation and collaboration. With Miro, you can visually track your progress, brainstorm adjustments, and engage your team every step of the way. It's like having a GPS for your strategy, ensuring you're always on the right path and making course corrections in real time.

In wrapping up, evaluating your strategic plan isn't about going through the motions; it's about ensuring your strategy lives and breathes along with your business. It keeps you aligned, adaptable, and ahead of the curve. With the right approach and Miro in your arsenal, you're not just planning for success; you're actively navigating your way toward it.