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Business Strategy

What is the reason to conduct a plan audit?

The majority of the initiatives taken by corporate executives in the present are described as “strategic”. With every aspect of the business having strategic importance, it’s becoming more difficult to differentiate from the various demands and priorities that are implemented by organizations. 

When everything is strategic it is not always obvious. If everything is deemed to be an important priority, there are no priorities whatsoever.

But, if the strategic direction of your organization is understood by all within your organization there are the following advantages that occur:

the capabilities of your organization will be aligned to help the success of your strategy.
The resources are allocated to various business processes in order of priority following the importance of the process and its impact on competitive advantage
your business or organization could be successful in the marketplace or the business/commercial field.
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The goal of an audit of strategy is to provide managers with the information, tools, and commitment to assess the level of benefit and focus they get from existing strategies. The audit will provide the information required to decide if an overhaul of strategy is required and precisely what changes are required.

A strategy audit is a process of assessing the direction taken by the business and then comparing that direction with the one needed to be successful in a constantly changing context. The actual direction of a company can be defined as the result of all that it does and doesn't accomplish, how the company's internal alignment is with the strategy, and how effective the plan is when compared with external market, competitor, and financial reality. The two types that are the internal assessment and the environmental or external assessment, are the primary components of an audit of strategy.

The following outline is based on This document is derived from Business Strategy Audit (see the References). It is intended to provide you with an idea of how you can go about conducting a self-assessment audit within your company without the need for additional training or assistance from a consultant. However, this outline doesn't include the full range of Questionnaires and Checklists, nor the comprehensive guidelines that can be found in the complete audit of 124 pages.


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