A strategic audit is the review of a corporation’s business strategies and plans to see if they will contribute towards the achievement of the company’s goals and objectives(Carey 4). The strategic audit analyzes whether the business plan is complete that is whether it consists of all the necessary information for its execution. It also analyzes whether the business plan is financially sound. It analyzes the employee’s attitudes and commitment to the vision and execution of the business plan at hand. The strategic audit analyzes whether the business plan offers a schedule for daily operations. Whether it is in line with the priorities and opinion of the management team and if it is clear.
Carrying out a strategy audit enables the company to identify areas of improvement in the business plan thus avoiding future errors while executing the plan that could cost the company a lot of money. With a strategy audit, it is easy to setup a discussion with the chief executive officer of the company to review necessary changes or corporate actions for the business plan. The strategy audit sheds a light on the logic of the plan. It evaluates if the actions in the business plan will enable the company to attain the goals in the given time and if the plan moves the company towards its vision (Carey 7).
Some of the ways in which a strategy audit is carried out is through individual interviews with the individuals in management. The opinions of the management team on the business plan are taken and new ideas that may come up are taken down. The strategy audit also includes the business logic plan is evaluated for example, how the business plan contributes towards satisfying consumer needs. Finally, a seminar is carried out where the results from the strategic audit are analyzed and the necessary changes to the business plan implemented.
Work Cited
Carey, A. "How to audit your business strategy." Assessment. 2 (2014): 4-13.
