respond to classmate 11
It is important for companies that are creating a strategic plan to understand how they are going to evaluate growth and performance of the implementation of the strategic plan. Each company will have different goals and will need to have different metrics to evaluate specific areas. One such area is the revenue growth. This is analyzing the increase in revenue once the new strategic plan is in place. This can be used when a company’s revenue growth has been inadequate or leveled off (Abraham, 2012). If it is increasing by a lot or not very much could say to managers that their needs to be changes or that the changes have been good. Another area to consider is the profitability. This area should be used when a company does not have working capital, negative cash flow or if their profits have been flat (Abraham, 2012). The increase in profitability is an important analysis to make, identifying if the new strategic plan will increase the profitability.
Each company has its own unique set of metrics and criteria, that will help determine their strategic plan. My current company would not use either of the above criteria to help develop their strategic plan. The metrics that we would analysis is the amount of people visiting our locations versus the amount of books checked out as well as the number of people attending our outreach events. Our job as a library is to use the money given to us by the tax payers to better the community and all of its members. To see how well we are reaching the members of the community we need to measure how many we are reaching. It is interesting to not be focused on the money side but to focus on the people using our services more. Not that there isn’t a money factor, but that factor is making sure we are using the money in the best way for our community.
Abraham, S. C. (2012). Strategic management for organizations. Retrieved from https://ashford.content.edu