Evaluation of Plans

Every plan must be evaluated. Objectives are measurable be­cause they are the means of determining whether or not a plan was successful.

Determining success:

Success can be determined by the degree to which an ob­jective was reached, such as a quality objective, where the objective was to reduce customer complaints by a specified percentage. The stated percentage of reduced complaints-the objective-can be reached, exceeded, or not reached.

Making adjustments:

Plans should be adjusted according to factors determined in the plan. An operational plan that set out to reduce complaints should be adjusted on the basis of the complaint rates. Achieving 95 percent of an objective may be considered acceptable, but the determination of whether the plan of operation is working must be made. Exceeding the objective by 5 or 10 percent is also good, but the plan should be reviewed so that a more accurate forecast can be made. If budgeting is based on meeting objectives, then the savings of 5 or 10 percent can be incorporated earlier if the forecast is more accurate. A strategic plan should be adjusted when the trends are expected to change. A change in complaint rate is not the basis for shifting the strategic plan.