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G.Dileep 1
Tools for organisational appraisal
The purpose of organisational appraisal is to determine the
organisational capability in terms of strengths and weaknesses that lie
in the different functional areas.
The various considerations involves in organisational appraisal relate to
the factors that affect appraisal, the approaches that can be adopted to
appraise them and the sources of information available to perform the
appraisal.
The factors that affect organisational appraisal relate to the strategists,
the organisation, and to the internal environment.
The approaches adopted for preparing organisational appraisal may
range from highly systematic to an adhoc approach.
The sources of information for organisational appraisal could be
internal and external and verbal and written.
The methods and techniques for organisational appraisal are similar to
those used for performance evaluation.
The methods and techniques are described under the three groups of
internal, comparative and comprehensive analyses.
Internal analysis consists of value chain analysis, quantitative analysis-
including financial and non-financial analysis and qualitative analysis.
Comparative analysis consists of the techniques of historical analysis,
industry norms and benchmarking.
Comprehensive analysis is done through the methods of balanced
score card and key factors rating.
Balanced score card identifies four key performance measures viz,
Customer perspective, Internal business perspective, Innovation and
learning perspective, and financial perspective.
Key factors rating consider the key factors of the different functional
capabilities viz, Financial capability, Marketing capability, Operations
capability, Personnel capability, Information capability and General
management capability.
A detailed Organisational Capability Profile (OCP) and a summarised
Strategic Advantages Profile (SAP) could do the structuring of the
organisational appraisal.
G.Dileep 2
Organisational capability profile (OCP)
The OCP is drawn in the form of a chart.
The strategists are required to systematically assess the various functional
areas and subjectively assign values to the different capability factors and
sub factors along with a scale ranging from the values of –5 to +5.
A detailed OCP may run into several pages where each of the sub factors
constituting the different functional capability factors can be assessed.
Capability factors
After completion of the chart, the strategists are in a position to assess the
relative strengths and weaknesses of an organisation in each of the six
functional areas and identify the gaps that need to be filled or the
opportunities that could be used.
The preparation of an OCP provides a convenient method to determine the
relative priorities of an organisation vis-à-vis its competitors, its
vulnerability to outside influences, the factors that support or pose a
threat to its existence, and its overall capability to compete in a given
industry.
G.Dileep 3
STRATEGIC ADVANTAGE PROFILE (SAP)
[Analysis of strengths and weaknesses]
[Internal analysis or organisational analysis]
Strategic Advantage Profile Of ABC India Ltd [you write an example of your
choice]
G.Dileep 4