The Business Strategy Audit

A company self-assessment audit to analyse the effectiveness of your business strategy and your strategy-making process

How well does your corporate strategy work - for your company as a whole, and for individual business units? If it fails in some areas - which ones? And why? How good is your strategy-making process at gathering information and opinions, and at delivering strategies that win support and deliver growth?

This self-assessment audit comes in three parts:

  • First, a 3-step audit to give you a clear, objective picture of the 'business environment': market, competitor and financial realities. (Of course, this information is already available to you - but probably not in a form that is tailored to help you shape and realign your overall business strategy.)
  • Second, a 7-step organisational assessment. This enables you to:
    • Clarify your company‚Äôs existing strategy
    • Measure its viability and robustness
    • Outline business processes
    • Determine capabilities
    • Determine appropriate organisation design and resource allocation
    • Assess the company culture
    • Integrate all these elements of the organisation assessment
  • Third, the tools you need to develop a framework within which to create an appropriate and flexible strategy for the future.

The 3-step audit of the business environment covers:

Step 1: Understand the environment at a macro level
Step 2: Understand the industry components in detail
Step 3: Integrate the components into an environmental picture

Run this audit regularly to plot how well your strategy is aligned with changing company needs. Check the targeting of resources against company capabilities and capacity - and identify any potential mis-match. Most important, use the audit to improve the way you develop new strategies. Every company should use this audit as an essential first-step in its strategy-making process. The results will focus any strategy meeting or strategic planning group on the key issues that need to be addressed.

This is the definitive strategy audit for any organisation. It underpins all the other audits available from Cambridge Strategy and many of them refer to the results of this audit. We recommend that every organisation should undertake it early in the self-assessment process.