The strategy audit programme is conducted in three stages in succession as following: 1. Diagnosis 2. Focused Analysis 3. Recommendations.

Stage # 1. Diagnosis:

It includes the following:


(i) Reviewing key documents, such as: Strategic plan, Business or Operational plan, Organisational details, Major policies affecting matters, such as resources allocation and performance measurement.

(ii) Reviewing performance against yardsticks (strategically determined) and industry norms with respect to finance, market and operation—to identify major variances and emerging trends.

(iii) Gaining an understanding of:

a) Roles, responsibilities, and reporting relationships,


b) Decision process and key decisions,

c) Resources (human, physical, financial and technological),

d) Interrelationships among functional staff and operating units.

(iv) Identifying strategic implications of strategy on organisation structure, behaviour patterns, systems and processes.


(v) Defining interrelationships and linkages to strategy.

(vi) Determining internal and external perspectives:

a. By survey/focused interviews/questionnaires to assess the attitudes and feelings of management and other key personnel (internal),

b. By interview with customers and prospective customers (carefully screened sample only) and with other key external sources (e.g. society, community, fellow businessmen and the government—highly selective) to understand as to how the company is viewed.


(vii) Identifying the very strategies that are working well and measuring degrees of success.

Stage # 2. Focused Analysis:

It includes:

(i) Ascertaining problems and assessing opportunities for improvement through an exhaustive analysis of specific issues and testing them.

(ii) Identifying interrelationships and dependencies among components of the strategic system.


(iii) Formulating conclusion as to:

a) Weakness in strategy formulation or

b) Deficiencies in strategy implementation or

c) Weak or deficient interactions between the two.

Stage # 3. Recommendations:


This final stage includes:

(i) Developing alternative solutions package to problems, and means to harness opportunities.

(ii) Testing them with reference to critical factors and measures, such as risks, priorities, resources requirements, etc.