Evaluation Plan: Control Risk, Improve Strategy & Outperform Competitors - Essay Sample

Introduction

Evaluation and control in an evaluation plan help to keep the plan and strategy on the check. It helps to determine if the strategy implemented produced the desired results. The management can determine if the strategy was poorly executed. Execution and implementation of any strategic plan come with its risks. One of the risks is the competitive threats which entail encountering competitors who can imitate the strategy and come to outperform you later (Barton et al., 2017). However, the company has to take up that risk with the hope that such an event will not have any significant effect on its operations. The bank should always struggle to be approximately correct than being precisely wrong. Being correct is achieved by setting a winning strategy that can drive change in the direction that the bank wishes to take up. Hence, making the right choice entails choosing what matters. The effort towards choosing what matters is done through benchmarking from competitors and deciding on a personal path that matters to the company. In this regard, the achieved success can be measured daily through the shareholder value creation measures such as ROI, EVA, MVA, EPS, is the company generating economic profit for shareholders (Cook, 2012). The Banco Santander has a variety of control techniques that it can use and some of them as pointed out by Cook (2012) include emphasizing rewards, monitoring the meaningful activities and results only, involving an only minimum amount of information and pinpointing exceptions.

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Strategy Execution Gap

The idea that will enable the project 4 strategic plan to be more implementable is the connectedness of the design to the mission of the bank. The strategic plan that will steer Banco Santander is a sustained investment in technology that will allow it to continue providing customer-focused services. Conversely, the mission of Banco Santander is to be a team that can generate great ideas that satisfy is customers and become profitable for its shareholders (Leinwand, 2016). It also seeks to consolidate its position as a global financial leader and collaborate for sustainable societal development. Hence, the noble idea is to have the two, mission and the strategic plan aligned together for them to be implementable. Implementation of a strategic plan requires reinforcement of differentiated capabilities to succeed. The most applicable capability is being able to come up with a design that is connected to the mission of the bank. Another differentiated capability is the ability to customize the products for a particular use rather than for a range of uses (Leinwand, 2016). Employing a specific strategic use helps in gluing the capabilities to the execution of the strategic plan. Banco Santander needs to be great at setting items that it needs to improve and become better in comparison to its competitors. For instance, creating sustainable investment in technology would make the bank better than its competitors. Secondly, the bank should be great at strategizing and cost. It should invest in its capabilities and leave away any other thing that would distract it from achieving its specific strategy. Capabilities are the drives of the strategy and the bank need to focus on them leaving out items that do not matter and that is not critical. The bank should also not try to chase change and be worried but try to shape its future, value its customer and try to shape its future. Setting a winning strategy through the CEO and other leaders drives change and provides long terms view that enables the organization to outperform its competitors (Barton et al., 2017).

References

Barton, D., Manyika, J., Koller, T., Palter, R., Godsall, J., & Zoffer, J. (2017). Where companies with a long-term view outperform their peers. Retrieved 6 August 2019, from https://www.mckinsey.com/featured-insights/long-term-capitalism/where-companies-with-a-long-term-view-outperform-their-peers

Cook, B. (2012). 10 Strategic Management: Strategy Evaluation and Control [Video]. Retrieved from https://www.youtube.com/watch?v=NfKLoGZiR4s

Leinwand, P. (2016). 510: Closing The Strategy - Execution Gap [Video]. Retrieved from https://soundcloud.com/hbrideacast/510-closing-the-strategy-execution-gap