Rumelt's Strategy Evaluation Framework (PowerPoint PPTX)

DESCRIPTION

Strategy Evaluation involves assessing a strategy's performance against established goals, identifying deviations or gaps, and making necessary adjustments to enhance future outcomes. The process encompasses reviewing internal and external factors, measuring performance, and implementing corrective actions where needed.

This presentation delves into Richard Rumelt's Strategy Evaluation Framework, a comprehensive tool for evaluating the effectiveness and quality of a strategy. The framework emphasizes aligning the strategy with the organization's goals and its competitive environment, offering a structured approach for enterprises to assess strategic efficacy. Rumelt's Framework provides leaders with a strategic lens to assess, validate, or refine their strategies for sustained competitive advantage.

Rumelt's Strategy Evaluation Framework examines 4 critical criteria:

1. Consistency – A good strategy must be free of conflicting objectives, policies, or actions. Internal consistency ensures that all parts of the organization—such as marketing, finance, and operations—work in harmony to support a unified objective.

2. Consonance – This criterion examines whether the strategy is aligned with external forces, including industry trends, economic shifts, and competitive pressures. A strong strategy must be adaptive and responsive to changes in the external environment.

3. Feasibility – The strategy must be realistic, meaning the organization should have or be able to acquire the necessary resources—financial, human, or technological—to execute it successfully. Strategies that are overly ambitious or unattainable often fail due to resource limitations or operational challenges.

4. Advantage – This evaluates the strategy's ability to create or sustain a competitive advantage. It assesses whether the organization possesses unique resources, capabilities, or market positioning that differentiate it from competitors and provide a sustainable edge.

Each criterion is discussed in depth, including a case study to understand it better.

This PPT presentation on Rumelt's Strategy Evaluation Framework also includes some slide templates for you to use in your own business presentations.

Got a question about the product? Email us at flevypro@flevy.com. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Best Practices in Strategy Development, Competitive Advantage, Competitive Analysis PowerPoint Slides: Rumelt's Strategy Evaluation Framework PowerPoint (PPTX) Presentation, LearnPPT Consulting