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Strategy Evaluation Matrix
  An Original Framework for selecting specific
   strategies from multiple strategic options




               Madhuranath R © 2012
STRATEGY EVALUATION MATRIX
 An Original Framework
                4
                        AVOID                                             INVESTIGATE
                HIGH



                        These strategies get third preference, as -       These strategies need to be researched, as-
                        • They need high investment to implement          • They can potentially yield high ROI
                        • Ability to execute is very low in near future   • Minor changes may improve executability
Risk Involved




                        • Outcomes are unknown | difficult to evaluate    • Outcomes are in high-gain : high-pain zone

                2
                        DELAY                                             EXECUTE
                        These strategies get third preference, as -       These strategies need to be executed first, as-
                        • They need little investment to implement        • They provide the best ROI
                        • Ability to execute may improve in future        • Actionizing is relatively easy
                        • The outcome from these may go either way        • Easier to evaluate outcomes for these
                LOW




                0
                       0 LOW                                    1.5
                                                       Ability to Execute                                      HIGH         3

       Conclusion: Select the strategic options that fall into the “magic quadrant” of LOW Risk and
       HIGH ability to execute. These strategies yield the maximum value per dollar.
Applying the SEM Framework
Where and Why of the Framework

 This framework is used in one of the steps of strategy planning

 Based on SWOT, firstly several strategic options are evolved

 To evaluate the strategic options evolved, use this framework

 This is a generic framework applicable for other uses like –
     Ideation Process – for filtering ideas generated by brainstorming
     Marketing Campaigns – to evaluate campaign options proposed
     Product Development – to evaluate features for the new product
Thank You!
Author: Madhuranath R
Contact: Madhuranath.R@gmail.com

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Strategy Evaluation Matrix: An Original Framework for Selecting Strategies

  • 1. Strategy Evaluation Matrix An Original Framework for selecting specific strategies from multiple strategic options Madhuranath R © 2012
  • 2. STRATEGY EVALUATION MATRIX An Original Framework 4 AVOID INVESTIGATE HIGH These strategies get third preference, as - These strategies need to be researched, as- • They need high investment to implement • They can potentially yield high ROI • Ability to execute is very low in near future • Minor changes may improve executability Risk Involved • Outcomes are unknown | difficult to evaluate • Outcomes are in high-gain : high-pain zone 2 DELAY EXECUTE These strategies get third preference, as - These strategies need to be executed first, as- • They need little investment to implement • They provide the best ROI • Ability to execute may improve in future • Actionizing is relatively easy • The outcome from these may go either way • Easier to evaluate outcomes for these LOW 0 0 LOW 1.5 Ability to Execute HIGH 3 Conclusion: Select the strategic options that fall into the “magic quadrant” of LOW Risk and HIGH ability to execute. These strategies yield the maximum value per dollar.
  • 3. Applying the SEM Framework Where and Why of the Framework  This framework is used in one of the steps of strategy planning  Based on SWOT, firstly several strategic options are evolved  To evaluate the strategic options evolved, use this framework  This is a generic framework applicable for other uses like –  Ideation Process – for filtering ideas generated by brainstorming  Marketing Campaigns – to evaluate campaign options proposed  Product Development – to evaluate features for the new product
  • 4. Thank You! Author: Madhuranath R Contact: Madhuranath.R@gmail.com