Chapt
erEi
ght
St
r
at
egyRevi
ew,
Eval
uat
i
onandCont
r
ol
8.
1 TheNat
ur
eofSt
r
at
egyEval
uat
i
on
Eval
uat
i
on i
st
he syst
emat
i
c det
er
mi
nat
i
on ofmer
i
t
,wor
t
h,and si
gni
f
i
cance of
somet
hi
ngorsomeone.Eval
uat
i
onof
t
eni
susedt
ochar
act
er
i
zeandappr
i
sesubj
ect
s
ofi
nt
er
esti
n a wi
de r
ange ofhuman ent
er
pr
i
ses,i
ncl
udi
ng t
he Ar
t
s,busi
ness,
comput
ersci
ence,cr
i
mi
nalj
ust
i
ce,educat
i
on,engi
neer
i
ng,f
oundat
i
onsandnonpr
of
i
t
or
gani
zat
i
ons,
gover
nment
,
heal
t
hcar
e,
andot
herhumanser
vi
ces.
“
St
r
at
egyeval
uat
i
onal
er
t
smanagementt
opot
ent
i
aloract
ualpr
obl
emsi
nat
i
mel
y
f
ashi
on.
”
 I
ti
scompl
exandsensi
t
i
veunder
t
aki
ng
 Over
emphasi
scanbecost
l
yandcount
er
pr
oduct
i
ve
Syst
emat
i
cRevi
ew,
Eval
uat
i
on&Cont
r
ol
1.St
r
at
egi
esbecomeobsol
et
e
2.I
nt
er
nal
envi
r
onment
sar
edynami
c
3.Ext
er
nalenvi
r
onment
sar
edynami
c
Pur
poseofst
r
at
egyeval
uat
i
on
 St
r
at
egyeval
uat
i
oni
svi
t
al
t
ot
heor
gani
zat
i
on’
swel
l
bei
ng
 Al
er
tmanagementt
opot
ent
i
aloract
ualpr
obl
emsi
nat
i
mel
yf
ashi
on
 Er
r
oneous st
r
at
egi
c deci
si
ons can have sever
e negat
i
ve i
mpact on
or
gani
zat
i
ons
Basi
cAct
i
vi
t
i
es–
1.Exami
ni
ngt
heunder
l
yi
ngbasesofaf
i
r
ms’
st
r
at
egy
2.Compar
i
ngexpect
edt
oact
ual
r
esul
t
s
3.Cor
r
ect
i
veact
i
onst
oensur
eper
f
or
manceconf
or
mst
opl
ans
I
nmanyor
gani
zat
i
ons,
eval
uat
i
oni
sanappr
ai
salofper
f
or
mance–
 Haveasset
si
ncr
eased?
 I
ncr
easei
npr
of
i
t
abi
l
i
t
y?
 I
ncr
easei
nsal
es?
 I
ncr
easei
npr
oduct
i
vi
t
y?
 Pr
of
i
tmar
gi
ns,
ROIandEPSr
at
i
osi
ncr
eased
FourCr
i
t
er
i
a(
Ri
char
dRummel
t
)
:Heexpl
ai
nsf
ourcr
i
t
er
i
af
orst
r
at
egyval
uat
i
on.They
ar
e:
1.Consi
st
ency
1
St
r
at
egyshoul
dnotpr
esenti
nconsi
st
entgoal
sandpol
i
ci
es.
•Conf
l
i
ctandi
nt
er
depar
t
ment
albi
cker
i
ngsympt
omat
i
cofmanager
i
aldi
sor
derand
st
r
at
egi
ci
nconsi
st
ency
2.Consonance
Needf
orst
r
at
egi
est
oexami
neset
soft
r
ends
•Adapt
i
ver
esponset
oext
er
nalenvi
r
onment
•Tr
endsar
er
esul
t
sofi
nt
er
act
i
onsamongot
hert
r
ends
3.Feasi
bi
l
i
t
y
Nei
t
herovert
axr
esour
cesnorcr
eat
esunsol
vabl
esubpr
obl
ems
•Or
gani
zat
i
onsmustdemonst
r
at
et
heabi
l
i
t
i
es,compet
enci
es,ski
l
l
sandt
al
ent
st
o
car
r
youtagi
venst
r
at
egy
4.Advant
age
Cr
eat
i
onormai
nt
enanceofcompet
i
t
i
veadvant
age
•Super
i
or
i
t
yi
nr
esour
ces,
ski
l
l
s,
orposi
t
i
on
Thepr
ocessofeval
uat
i
ngSt
r
at
egi
es
1.St
r
at
egyeval
uat
i
oni
snecessar
yf
oral
lsi
zesandki
ndsofor
gani
zat
i
on.St
r
at
egy
eval
uat
i
onshoul
di
ni
t
i
at
emanager
i
alquest
i
oni
ngofexpect
at
i
onsandassumpt
i
ons
shoul
dt
r
i
ggerar
evi
ew ofobj
ect
i
vesandval
uesandshoul
dst
i
mul
at
ecr
eat
i
vi
t
yi
n
gener
at
i
ngal
t
er
nat
i
veandf
or
mul
at
i
ngcr
i
t
er
i
aofeval
uat
i
on
2.Eval
uat
i
ngst
r
at
egi
esoncont
i
nuousr
at
hert
hanaper
i
odi
cbasi
sal
l
owsbenchmar
k
ofpr
ogr
esst
oest
abl
i
shedando\
mor
eef
f
ect
i
vel
ymoni
t
or
ed
3.Manager
sandempl
oyeesoft
hef
i
r
m shoul
dbecont
i
nual
l
yawar
eofpr
ogr
essbei
ng
madet
owar
dsachi
evi
ngt
hef
i
r
m’
sobj
ect
i
ves.Asacr
i
t
i
calsuccessf
act
or
schange,
or
gani
zat
i
onmember
sshoul
dbei
nvol
vedi
ndet
er
mi
ni
ngappr
opr
i
at
ecor
r
ect
i
veact
i
on.
8.
2 ASt
r
at
egyEval
uat
i
onFr
amewor
k
St
r
at
egyeval
uat
i
onact
i
vi
t
i
esi
nt
er
msofkeyquest
i
onst
hatshoul
dbeaddr
essed,
al
t
er
nat
i
veanswer
st
ot
hosequest
i
ons,andappr
opr
i
at
eact
i
onsf
oranor
gani
zat
i
ont
o
t
ake.Not
i
cet
hatcor
r
ect
i
veact
i
onsar
eal
mostal
waysneededexceptwhen:
(
1)Ext
er
nalandi
nt
er
nalf
act
or
shavenotsi
gni
f
i
cant
l
ychangedand
(
2)Thef
i
r
mi
spr
ogr
essi
ngsat
i
sf
act
or
i
l
yt
owar
dachi
evi
ngst
at
edobj
ect
i
ves.
Revi
ewi
ngBasesofSt
r
at
egy
2
Revi
ewi
ngt
heunder
l
yi
ngbasesofanor
gani
zat
i
on'
sst
r
at
egycoul
dbeappr
oachedby
devel
opi
ngar
evi
sedEFEMat
r
i
xandI
FEMat
r
i
x.Ar
evi
sedI
FEMat
r
i
xshoul
df
ocuson
changes i
n t
he or
gani
zat
i
on'
s management
, mar
ket
i
ng, f
i
nance/
account
i
ng,
pr
oduct
i
on/
oper
at
i
ons,R&D,and comput
er i
nf
or
mat
i
on syst
ems st
r
engt
hs and
weaknesses.A r
evi
sedEFEMat
r
i
xshoul
di
ndi
cat
ehow ef
f
ect
i
veaf
i
r
m'
sst
r
at
egi
es
hav
ebeeni
nr
esponset
okeyoppor
t
uni
t
i
esandt
hr
eat
s.Thi
sanal
ysi
scoul
dal
so
addr
esssuchquest
i
onsast
hef
ol
l
owi
ng:
1.Howhavecompet
i
t
or
sr
eact
edt
oourst
r
at
egi
es?
2.Howhavecompet
i
t
or
s'
st
r
at
egi
eschanged?
3.Havemaj
orcompet
i
t
or
s'
st
r
engt
hsandweaknesseschanged?
4.Whyar
ecompet
i
t
or
smaki
ngcer
t
ai
nst
r
at
egi
cchanges?
5.Whyar
esomecompet
i
t
or
s'
st
r
at
egi
esmor
esuccessf
ult
hanot
her
s?
6.How sat
i
sf
i
ed ar
e ourcompet
i
t
or
s wi
t
ht
hei
rpr
esentmar
ketposi
t
i
ons and
pr
of
i
t
abi
l
i
t
y?
7.Howf
arcanourmaj
orcompet
i
t
or
sbepushedbef
or
er
et
al
i
at
i
ng?
8.Howcoul
dwemor
eef
f
ect
i
vel
ycooper
at
ewi
t
hourcompet
i
t
or
s?
Measur
i
ngOr
gani
zat
i
onalPer
f
or
mance
Anot
her i
mpor
t
ant st
r
at
egyeval
uat
i
on act
i
vi
t
y i
s measur
i
ng or
gani
zat
i
onal
per
f
or
mance.Thi
sact
i
vi
t
yi
ncl
udescompar
i
ng expect
ed r
esul
t
st
o act
ualr
esul
t
s,
i
nvest
i
gat
i
ngdevi
at
i
onsf
r
om pl
ans,eval
uat
i
ngi
ndi
vi
dualper
f
or
mance,andexami
ni
ng
pr
ogr
essbei
ngmadet
owar
dmeet
i
ngst
at
edobj
ect
i
ves.Bot
hl
ongt
er
m andannual
obj
ect
i
vesar
ecommonl
yusedi
nt
hi
spr
ocess.Cr
i
t
er
i
af
oreval
uat
i
ngst
r
at
egi
esshoul
d
bemeasur
abl
eandeasi
l
yver
i
f
i
abl
e.Cr
i
t
er
i
at
hatpr
edi
ctr
esul
t
smaybemor
ei
mpor
t
ant
t
hant
hoset
hatr
evealwhatal
r
eadyhashappened.
Quant
i
t
at
i
vecr
i
t
er
i
acommonl
yusedt
oeval
uat
est
r
at
egi
esar
ef
i
nanci
alr
at
i
os,whi
ch
st
r
at
egi
st
suset
omaket
hr
eecr
i
t
i
calcompar
i
sons:
(
1)Compar
i
ngt
hef
i
r
m'
sper
f
or
manceoverdi
f
f
er
entt
i
meper
i
ods,
(
2)Compar
i
ngt
hef
i
r
m'
sper
f
or
mancet
ocompet
i
t
or
s'
,
and
(
3)Compar
i
ngt
hef
i
r
m'
sper
f
or
mancet
oi
ndust
r
yaver
ages.
Somekeyf
i
nanci
alr
at
i
ost
hatar
epar
t
i
cul
ar
l
yusef
ulascr
i
t
er
i
af
orst
r
at
egyeval
uat
i
onar
eas
f
ol
l
ows:
1.Ret
ur
noni
nvest
ment
2.Ret
ur
nonequi
t
y
3
3.Pr
of
i
tmar
gi
n
4.Mar
ketshar
e
5.Debtt
oequi
t
y
6.Ear
ni
ngspershar
e
7.Sal
esgr
owt
h
8.Assetgr
owt
h
Apar
tf
r
om quant
i
t
at
i
vecr
i
t
er
i
a,SeymourTi
l
l
esi
dent
i
f
i
edsi
xqual
i
t
at
i
vequest
i
onst
hat
ar
eusef
uli
neval
uat
i
ngst
r
at
egi
es:
1.I
st
hest
r
at
egyi
nt
er
nal
l
yconsi
st
ent
?
2.I
st
hest
r
at
egyconsi
st
entwi
t
ht
heenvi
r
onment
?
3.I
st
hest
r
at
egyappr
opr
i
at
ei
nvi
ewofavai
l
abl
er
esour
ces?
4.Doest
hest
r
at
egyi
nvol
veanaccept
abl
edegr
eeofr
i
sk?
5.Doest
hest
r
at
egyhaveanappr
opr
i
at
et
i
mef
r
amewor
k?
6.I
st
hest
r
at
egywor
kabl
e?
Taki
ngCor
r
ect
i
veAct
i
ons
The f
i
nalst
r
at
egyeval
uat
i
on act
i
vi
t
y,t
aki
ng cor
r
ect
i
ve act
i
ons,r
equi
r
es maki
ng
changest
or
eposi
t
i
onaf
i
r
m compet
i
t
i
vel
yf
ort
hef
ut
ur
e.Exampl
esofchangest
hat
maybeneededar
eal
t
er
i
nganor
gani
zat
i
on'
sst
r
uct
ur
e,r
epl
aci
ngoneormor
ekey
i
ndi
vi
dual
s,sel
l
i
ngadi
vi
si
on,orr
evi
si
ngabusi
nessmi
ssi
on.Ot
herchangescoul
d
i
ncl
udeest
abl
i
shi
ngorr
evi
si
ngobj
ect
i
ves,
devi
si
ngnewpol
i
ci
es,
i
ssui
ngst
ockt
or
ai
se
capi
t
al
,addi
ngaddi
t
i
onalsal
esper
sons,al
l
ocat
i
ngr
esour
cesdi
f
f
er
ent
l
y,ordevel
opi
ng
newper
f
or
mancei
ncent
i
ves.Taki
ngcor
r
ect
i
veact
i
onsdoesnotnecessar
i
l
ymeant
hat
exi
st
i
ngst
r
at
egi
eswi
l
l
beabandonedorevent
hatnewst
r
at
egi
esmustbef
or
mul
at
ed.
8.
3
Publ
i
shedSour
cesofSt
r
at
egyEval
uat
i
onI
nf
or
mat
i
on
A numberofpubl
i
cat
i
ons ar
e hel
pf
uli
n eval
uat
i
ng a f
i
r
m’
s st
r
at
egi
es.Al
t
hough
publ
i
shedsour
cesofst
r
at
egyeval
uat
i
oni
nf
or
mat
i
onf
ocuspr
i
mar
i
l
yonl
ar
ge,publ
i
cl
y
hel
dbusi
nesses,t
hecompar
at
i
ver
at
i
osandr
el
at
edi
nf
or
mat
i
onar
ewi
del
yusedt
o
eval
uat
esmal
lbusi
nessesandpr
i
vat
el
yownedf
i
r
msaswel
l
.
8.
4
Char
act
er
i
st
i
csofanEf
f
ect
i
veEval
uat
i
onSyst
em
AGoodeval
uat
i
onsyst
em mustpossessvar
i
ousqual
i
t
i
es.Fi
r
st
,st
r
at
egyeval
uat
i
on
act
i
vi
t
i
esmustbeeconomi
cal
;t
oomuchi
nf
or
mat
i
oncanbej
ustasbadast
ool
i
t
t
l
e
i
nf
or
mat
i
on;andt
oomanycont
r
ol
scandomor
ehar
mt
hangood.St
r
at
egyeval
uat
i
on
act
i
vi
t
i
es al
so shoul
d be meani
ngf
ul
;t
hey shoul
d speci
f
i
cal
l
yr
el
at
et
oaf
i
r
m'
s
4
obj
ect
i
ves.Theyshoul
dpr
ovi
demanager
swi
t
husef
uli
nf
or
mat
i
onaboutt
asksover
whi
cht
heyhavecont
r
olandi
nf
l
uence.St
r
at
egyeval
uat
i
onact
i
vi
t
i
esshoul
dpr
ovi
de
t
i
mel
yi
nf
or
mat
i
on;onoccasi
onandi
nsomear
eas,manager
smayneedi
nf
or
mat
i
on
dai
l
y.Forexampl
e,whenaf
i
r
m hasdi
ver
si
f
i
edbyacqui
r
i
nganot
herf
i
r
m,eval
uat
i
ve
i
nf
or
mat
i
onmaybeneededf
r
equent
l
y.However
,i
nanR&Ddepar
t
ment
,dai
l
yoreven
weekl
yeval
uat
i
vei
nf
or
mat
i
oncoul
dbedysf
unct
i
onal
.Appr
oxi
mat
ei
nf
or
mat
i
ont
hati
s
t
i
mel
yi
sgener
al
l
ymor
edesi
r
abl
easabasi
sf
orst
r
at
egyeval
uat
i
ont
hanaccur
at
e
i
nf
or
mat
i
on t
hatdoes notdepi
ctt
he pr
esent
.Fr
equentmeasur
ementand r
api
d
r
epor
t
i
ngmayf
r
ust
r
at
econt
r
olr
at
hert
hangi
vebet
t
ercont
r
ol
.Thet
i
medi
mensi
onof
cont
r
olmustcoi
nci
dewi
t
ht
het
i
mespanoft
heeventbei
ngmeasur
ed.
St
r
at
egyeval
uat
i
onshoul
dbedesi
gnedt
opr
ovi
deat
r
uepi
ct
ur
eofwhati
shappeni
ng.
Forexampl
e,i
nasever
eeconomi
cdownt
ur
n,pr
oduct
i
vi
t
yandpr
of
i
t
abi
l
i
t
yr
at
i
osmay
dr
op al
ar
mi
ngl
y,al
t
hough empl
oyees and manager
s ar
e act
ual
l
ywor
ki
ng har
der
.
St
r
at
egyeval
uat
i
onsshoul
dpor
t
r
ayt
hi
st
ypeofsi
t
uat
i
onf
ai
r
l
y.I
nf
or
mat
i
onder
i
ved
f
r
om t
hest
r
at
egyeval
uat
i
onpr
ocessshoul
df
aci
l
i
t
at
eact
i
onandshoul
dbedi
r
ect
edt
o
t
hosei
ndi
vi
dual
si
nt
heor
gani
zat
i
onwhoneedt
ot
akeact
i
onbasedoni
t
.Manager
s
commonl
yi
gnor
eeval
uat
i
ver
epor
t
st
hatar
epr
ovi
dedf
ori
nf
or
mat
i
onalpur
posesonl
y;
notal
lmanager
sneedt
or
ecei
veal
lr
epor
t
s.Cont
r
ol
sneedt
obeact
i
onor
i
ent
edr
at
her
t
hani
nf
or
mat
i
onor
i
ent
ed.
The st
r
at
egyeval
uat
i
on pr
ocess shoul
d notdomi
nat
e deci
si
ons;i
tshoul
df
ost
er
mut
ualunder
st
andi
ng,t
r
ust
,and common sense!No depar
t
mentshoul
df
ai
lt
o
cooper
at
ewi
t
hanot
heri
neval
uat
i
ngst
r
at
egi
es.St
r
at
egyeval
uat
i
onsshoul
dbesi
mpl
e,
nott
oocumber
some,andnott
oor
est
r
i
ct
i
ve.Compl
exst
r
at
egyeval
uat
i
onsyst
ems
of
t
enconf
usepeopl
eandaccompl
i
shl
i
t
t
l
e.Thet
estofanef
f
ect
i
veeval
uat
i
onsyst
em
i
si
t
susef
ul
ness,
noti
t
scompl
exi
t
y.
Lar
geor
gani
zat
i
onsr
equi
r
eamor
eel
abor
at
eanddet
ai
l
edst
r
at
egyeval
uat
i
onsyst
em
because i
ti
s mor
e di
f
f
i
cul
tt
o coor
di
nat
e ef
f
or
t
s among di
f
f
er
entdi
vi
si
ons and
f
unct
i
onalar
eas.Manager
si
nsmal
lcompani
esof
t
encommuni
cat
ewi
t
heachot
her
andt
hei
rempl
oyeesdai
l
yanddonotneedext
ensi
veeval
uat
i
ver
epor
t
i
ngsyst
ems.
Fami
l
i
ar
i
t
y wi
t
h l
ocal envi
r
onment
s usual
l
y makes gat
her
i
ng and eval
uat
i
ng
i
nf
or
mat
i
onmucheasi
erf
orsmal
lor
gani
zat
i
onst
hanf
orl
ar
gebusi
nesses.Butt
hekey
t
oanef
f
ect
i
vest
r
at
egyeval
uat
i
onsyst
em maybet
heabi
l
i
t
yt
oconvi
ncepar
t
i
ci
pant
s
t
hatf
ai
l
ur
et
oaccompl
i
shcer
t
ai
nobj
ect
i
veswi
t
hi
napr
escr
i
bedt
i
mei
snotnecessar
i
l
y
ar
ef
l
ect
i
onoft
hei
rper
f
or
mance.
Ther
ei
snoonei
dealst
r
at
egyeval
uat
i
onsyst
em.Theuni
quechar
act
er
i
st
i
csofan
or
gani
zat
i
on,i
ncl
udi
ngi
t
ssi
ze,managementst
yl
e,pur
pose,pr
obl
ems,andst
r
engt
hs,
can det
er
mi
ne a st
r
at
egyeval
uat
i
on and cont
r
olsyst
em'
sf
i
naldesi
gn.Rober
t
Wat
er
manof
f
er
edt
hef
ol
l
owi
ngobser
vat
i
onaboutsuccessf
ulor
gani
zat
i
ons'
st
r
at
egyeval
uat
i
onandcont
r
ol
syst
ems:
5
Successf
ulcompani
es t
r
eatf
act
s as f
r
i
ends and cont
r
ol
s as l
i
ber
at
i
ng.Mor
gan
Guar
ant
yandWel
l
sFar
gonotonl
ysur
vi
vebutt
hr
i
vei
nt
het
r
oubl
edwat
er
sofbank
der
egul
at
i
on,becauset
hei
rst
r
at
egyeval
uat
i
onandcont
r
olsyst
emsar
esound,t
hei
r
r
i
ski
scont
ai
ned,andt
heyknow t
hemsel
vesandt
hecompet
i
t
i
vesi
t
uat
i
onsowel
l
.
Successf
ulcompani
eshaveavor
aci
oushungerf
orf
act
s.Theyseei
nf
or
mat
i
onwher
e
ot
her
sseeonl
ydat
a.Theyl
ovecompar
i
sons,
r
anki
ngs,
anyt
hi
ngt
hatr
emovesdeci
si
on
maki
ng f
r
om t
he r
eal
m ofmer
e opi
ni
on.Successf
ulcompani
es mai
nt
ai
nt
i
ght
,
accur
at
ef
i
nanci
alcont
r
ol
s.Thei
rpeopl
edon'
tr
egar
dcont
r
ol
sasani
mposi
t
i
onof
aut
ocr
acy,butast
hebeni
gnchecksandbal
ancest
hatal
l
owt
hem t
obecr
eat
i
v
eand
f
r
ee.
8.
5
Thecont
i
ngencyModel
Abasi
cpr
emi
seofgoodst
r
at
egi
cmanagementi
st
hatf
i
r
mspl
anwayst
odealwi
t
h
unf
avor
abl
eandf
avor
abl
eevent
sbef
or
et
heyoccur
.Toomanyor
gani
zat
i
onspr
epar
e
cont
i
ngency pl
ans j
ustf
orunf
avor
abl
e event
s;t
hi
si
s a mi
st
ake,because bot
h
mi
ni
mi
zi
ngt
hr
eat
sandcapi
t
al
i
zi
ngonoppor
t
uni
t
i
escani
mpr
oveaf
i
r
m'
scompet
i
t
i
ve
posi
t
i
on.
Regar
dl
essofhow car
ef
ul
l
yst
r
at
egi
esar
ef
or
mul
at
ed,i
mpl
ement
ed,andeval
uat
ed,
unf
or
eseen event
s such as st
r
i
kes,boycot
t
s,nat
ur
aldi
sast
er
s,ar
r
i
valoff
or
ei
gn
compet
i
t
or
s,andgover
nmentact
i
onscanmakeast
r
at
egyobsol
et
e.Tomi
ni
mi
zet
he
i
mpactofpot
ent
i
alt
hr
eat
s,
or
gani
zat
i
onsshoul
ddevel
opcont
i
ngencypl
ansaspar
tof
t
hest
r
at
egy
eval
uat
i
onpr
ocess.Cont
i
ngencypl
anscanbedef
i
nedasal
t
er
nat
i
vepl
ans
t
hatcanbeputi
nt
oef
f
ecti
fcer
t
ai
nkeyevent
sdonotoccurasexpect
ed.Onl
yhi
ghpr
i
or
i
t
yar
easr
equi
r
et
hei
nsur
anceofcont
i
ngencypl
ans.St
r
at
egi
st
scannotand
shoul
dnott
r
yt
ocoveral
lbasesbypl
anni
ngf
oral
lpossi
bl
econt
i
ngenci
es.Buti
nany
case,
cont
i
ngencypl
ansshoul
dbeassi
mpl
easpossi
bl
e.
Audi
t
i
ng
Af
r
equent
l
yusedt
ooli
nst
r
at
egyeval
uat
i
oni
st
heaudi
t
.Audi
t
i
ngi
sdef
i
nedbyt
he
Amer
i
can Account
i
ng Associ
at
i
on (
AAA)as "
a syst
emat
i
c pr
ocess ofobj
ect
i
vel
y
obt
ai
ni
ngandeval
uat
i
ngevi
dencer
egar
di
ngasser
t
i
onsabouteconomi
cact
i
onsand
event
st
o ascer
t
ai
nt
hedegr
eeofcor
r
espondencebet
ween t
hoseasser
t
i
onsand
est
abl
i
shedcr
i
t
er
i
a,andcommuni
cat
i
ngt
her
esul
t
st
oi
nt
er
est
eduser
s.
"Peopl
ewho
per
f
or
m audi
t
scanbedi
vi
dedi
nt
ot
hr
eegr
oups:i
ndependentaudi
t
or
s,gover
nment
audi
t
or
s,and i
nt
er
nalaudi
t
or
s.I
ndependentaudi
t
or
sbasi
cal
l
yar
ecer
t
i
f
i
ed publ
i
c
account
ant
s(
CPAs)whopr
ovi
det
hei
rser
vi
cest
oor
gani
zat
i
onsf
oraf
ee;t
heyexami
ne
t
hef
i
nanci
alst
at
ement
sofanor
gani
zat
i
ont
odet
er
mi
newhet
hert
heyhavebeen
pr
epar
edaccor
di
ngt
ogener
al
l
yaccept
edaccount
i
ngpr
i
nci
pl
es(
GAAP)andwhet
her
t
heyf
ai
r
l
yr
epr
esentt
heact
i
vi
t
i
esoft
hef
i
r
m.I
ndependentaudi
t
or
suseasetof
st
andar
dscal
l
edgener
al
l
yaccept
edaudi
t
i
ngst
andar
ds(
GAAS)
.Publ
i
caccount
i
ng
6
f
i
r
msof
t
enhaveaconsul
t
i
ngar
mt
hatpr
ovi
desst
r
at
egyeval
uat
i
onser
vi
ces.
Two gover
nmentagenci
es—t
heGener
alAccount
i
ng Of
f
i
ce(
GAO)and t
heI
nt
er
nal
RevenueSer
vi
ce(
I
RS)
—empl
oygover
nmentaudi
t
or
sr
esponsi
bl
ef
ormaki
ngsur
et
hat
or
gani
zat
i
onscompl
ywi
t
hf
eder
all
aws,st
at
ut
es,andpol
i
ci
es.GAOandI
RSaudi
t
or
s
canaudi
tanypubl
i
corpr
i
vat
eor
gani
zat
i
on.Thet
hi
r
dgr
oupofaudi
t
or
si
sempl
oyees
wi
t
hi
nanor
gani
zat
i
onwhoar
er
esponsi
bl
ef
orsaf
eguar
di
ngcompanyasset
s,f
or
assessi
ng t
he ef
f
i
ci
encyofcompanyoper
at
i
ons,and f
orensur
i
ng t
hatgener
al
l
y
accept
edbusi
nesspr
ocedur
esar
epr
act
i
ced.
TheEnvi
r
onment
alAudi
t
Forani
ncr
easi
ngnumberoff
i
r
ms,over
seei
ngenvi
r
onment
alaf
f
ai
r
si
snol
ongera
t
echni
calf
unct
i
on per
f
or
med by speci
al
i
st
s;i
tr
at
herhas become an i
mpor
t
ant
st
r
at
egi
cmanagement concer
n. Pr
oduct desi
gn, manuf
act
ur
i
ng, t
r
anspor
t
at
i
on,
cust
omeruse,packagi
ng,pr
oductdi
sposal
,and cor
por
at
er
ewar
dsand sanct
i
ons
shoul
d r
ef
l
ect envi
r
onment
al consi
der
at
i
ons. Fi
r
ms t
hat ef
f
ect
i
vel
y manage
envi
r
onment
alaf
f
ai
r
s ar
e benef
i
t
i
ng f
r
om const
r
uct
i
ve r
el
at
i
ons wi
t
h empl
oyees,
consumer
s,
suppl
i
er
s,
anddi
st
r
i
but
or
s.
I
nst
i
t
ut
i
nganenvi
r
onment
alaudi
tcani
ncl
udemovi
ngenvi
r
onment
alaf
f
ai
r
sf
r
om t
he
st
af
fsi
de oft
he or
gani
zat
i
on t
ot
he l
i
ne si
de.Some f
i
r
ms ar
e al
so i
nt
r
oduci
ng
envi
r
onment
alcr
i
t
er
i
aandobj
ect
i
vesi
nt
hei
rper
f
or
manceappr
ai
sali
nst
r
ument
sand
syst
ems.Conoco,f
orexampl
e,t
i
es compensat
i
on ofal
li
t
st
op manager
st
o
envi
r
onment
al act
i
on pl
ans. Occi
dent
al Chemi
cal i
ncl
udes envi
r
onment
al
r
esponsi
bi
l
i
t
i
esi
nal
li
t
sj
obdescr
i
pt
i
onsf
orposi
t
i
ons.
Usi
ngComput
er
st
oEval
uat
eSt
r
at
egi
es
Whenpr
oper
l
ydesi
gned,i
nst
al
l
ed,andoper
at
ed,acomput
ernet
wor
kcanef
f
i
ci
ent
l
y
acqui
r
ei
nf
or
mat
i
onpr
ompt
l
yandaccur
at
el
y.Net
wor
kscanal
l
ow di
ver
sest
r
at
egyeval
uat
i
onr
epor
t
st
obegener
at
edf
or
—andr
espondedt
oby—di
f
f
er
entl
evel
sandt
ypes
ofmanager
s.
8.
6
St
r
at
egi
cCont
r
ol
:Cont
r
olPr
ocess
Thepr
ocessofeval
uat
i
onbasi
cal
l
ydeal
swi
t
hf
ourst
eps:
1.Set
t
i
ngst
andar
dsofper
f
or
mance
2.Measur
ementofper
f
or
mance
3.Anal
yzi
ngvar
i
ance
4.Taki
ngcor
r
ect
i
veact
i
on
END!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
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7