An organization’s evaluation and control program is a data gathering and action initiation mechanism. This program monitors the external business environments, the internal performance of business units, processes, and individuals, and the output products and services of the organization. Once collected, data is processed to present a picture of the company’s overall performance and to trigger actions in response to conditions representing opportunities or threats.
The evaluation and control program is comprised of several component processes that monitor performance on a continuous, periodic, and event driven basis; driving action when necessary. Component processes include:
- organizational performance measurement system (continuous and periodic)
- external environmental monitoring program (continuous and periodic)
- condition reporting/corrective action program (event driven)
- business performance assessment program (periodic and event driven)
- benchmarking (periodic)
Outputs from the various monitoring processes are often combined to create a richer understanding of organizational performance relative to both internal performance standards and external benchmarks. Synthesized data drives actions on a day-to-day operational basis and serves as input to the strategic planning process. When predefined thresholds are reached or exceeded, action is prompted to take advantage of opportunities or mitigate threats representing a risk to the business or its operations.
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