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    A

    PROJECT REPORT

    ON

    CONCEPT OF STRATEGY

    IN PARTIAL FULFILLMENT OF THE DEGREE OF

    MASTERS OF BUSINESS ADMINISTRATION

    (M.B.A.)

    BY

    2009-2010

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    STRATEGY

    A strategy is a plan of action designed to achieve a particular goal. The

    word strategy has military connotations, because it derives from the Greek

    word for general.

    Strategy is different from tactics. In military terms, tactics is concerned with

    the conduct of an engagement while strategy is concerned with how different

    engagements are linked. In other words, how a battle is fought is a matter of

    tactics: the terms that it is fought on and whether it should be fought at all is

    a matter of strategy.

    Strategic or institutional management is the conduct of drafting,

    implementing and evaluating cross-functional decisions that will enable an

    organization to achieve its long-term objectives. It is the process of

    specifying the organization's mission, vision and objectives, developing

    policies and plans, often in terms of projects and programs, which are

    designed to achieve these objectives, and then allocating resources to

    implement the policies and plans, projects and programs.

    Strategic management is a level of managerial activity under setting goals

    and over Tactics. Strategic management provides overall direction to the

    enterprise and is closely related to the field ofOrganization Studies. In thefield of business administration it is useful to talk about "strategic

    alignment" between the organization and its environment or "strategic

    consistency".

    http://en.wikipedia.org/wiki/Objective_(goal)http://en.wikipedia.org/wiki/Tactic_(method)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Visionhttp://en.wikipedia.org/wiki/Tactic_(method)http://en.wikipedia.org/wiki/Organization_Studieshttp://en.wikipedia.org/wiki/Objective_(goal)http://en.wikipedia.org/wiki/Tactic_(method)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Visionhttp://en.wikipedia.org/wiki/Tactic_(method)http://en.wikipedia.org/wiki/Organization_Studies
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    Strategy formulation

    Strategic formulation is a combination of three main processes which are as

    follows:

    Performing a situation analysis, self-evaluation and competitor

    analysis: both internal and external; both micro-environmental and

    macro-environmental.

    Concurrent with this assessment, objectives are set. These objectives

    should be parallel to a timeline; some are in the short-term and others

    on the long-term. This involves crafting vision statements (long term

    view of a possible future), mission statements (the role that the

    organization gives itself in society), overall corporate objectives (both

    financial and strategic), strategic business unit objectives (both

    financial and strategic), and tactical objectives.

    These objectives should, in the light of the situation analysis, suggest

    a strategic plan. The plan provides the details of how to achieve these

    objectives.

    Strategy implementation

    Allocation and management of sufficient resources (financial,

    personnel, operational support, time, technology support)

    Establishing a chain of command or some alternative structure (such

    as cross functional teams)

    Assigning responsibility of specific tasks or processes to specific

    individuals or groups

    It also involves managing the process. This includes monitoring

    results, comparing to benchmarks and best practices, evaluating the

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    efficacy and efficiency of the process, controlling for variances, and

    making adjustments to the process as necessary.

    When implementing specific programs, this involves acquiring the

    requisite resources, developing the process, training, process testing,

    documentation, and integration with (and/or conversion from) legacy

    processes.

    Strategy evaluation

    Measuring the effectiveness of the organizational strategy, it's extremely

    important to conduct a SWOT analysis to figure out the strengths,

    weaknesses, opportunities and threats (both internal and external) of the

    entity in question.

    The strategy hierarchy

    In most (large) corporations there are several levels of management.

    Strategic management is the highest of these levels in the sense that it is the

    broadest - applying to all parts of the firm - while also incorporating the

    longest time horizon. It gives direction to corporate values, corporate

    culture, corporate goals, and corporate missions. Under this broad corporate

    strategy there are typically business-level competitive strategies and

    functional unit strategies.

    Corporate strategy refers to the overarching strategy of the diversified

    firm. Such a corporate strategy answers the questions of "in which

    businesses should we be in?" and "how does being in these business create

    synergy and/or add to the competitive advantage of the corporation as a

    whole?"

    http://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/SWOT_analysis
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    Business strategy refers to the aggregated strategies of single business firm

    or a strategic business unit (SBU) in a diversified corporation. According to

    Michael Porter, a firm must formulate a business strategy that incorporates

    either cost leadership, differentiation or focus in order to achieve a

    sustainable competitive advantage and long-term success in its chosen

    arenas or industries.

    Functional strategies include marketing strategies, new product

    development strategies, human resource strategies, financial strategies, legal

    strategies, supply-chain strategies, and information technology management

    strategies. The emphasis is on short and medium term plans and is limited to

    the domain of each departments functional responsibility.

    An additional level of strategy called operational strategy was encouraged

    by Peter Drucker in his theory of management by objectives (MBO). It is

    very narrow in focus and deals with day-to-day operational activities such as

    scheduling criteria. It must operate within a budget but is not at liberty to

    adjust or create that budget.

    http://en.wikipedia.org/wiki/Michael_Porterhttp://en.wikipedia.org/wiki/Cost_leadershiphttp://en.wikipedia.org/wiki/Differentiationhttp://en.wikipedia.org/wiki/Focushttp://en.wikipedia.org/wiki/Marketing_strategieshttp://en.wikipedia.org/wiki/Peter_Druckerhttp://en.wikipedia.org/wiki/Management_by_objectiveshttp://en.wikipedia.org/wiki/Michael_Porterhttp://en.wikipedia.org/wiki/Cost_leadershiphttp://en.wikipedia.org/wiki/Differentiationhttp://en.wikipedia.org/wiki/Focushttp://en.wikipedia.org/wiki/Marketing_strategieshttp://en.wikipedia.org/wiki/Peter_Druckerhttp://en.wikipedia.org/wiki/Management_by_objectives
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    Limitations of strategic management

    Although a sense of direction is important, it can also stifle creativity,

    especially if it is rigidly enforced. In an uncertain and ambiguous world,

    fluidity can be more important than a finely tuned strategic compass. When a

    strategy becomes internalized into a corporate culture, it can lead to group

    think. It can also cause an organization to define itself too narrowly. An

    example of this is marketing myopia.

    Many theories of strategic management tend to undergo only brief periods of

    popularity. A summary of these theories thus inevitably exhibits

    survivorshipbias (itself an area of research in strategic management). Many

    theories tend either to be too narrow in focus to build a complete corporate

    strategy on, or too general and abstract to be applicable to specific situations.

    Strategy can be formulated on three different levels:

    corporate level

    business unit level

    Functional or departmental level.

    While strategy may be about competing and surviving as a firm, one can

    argue that products, not corporations compete, and products are developed

    by business units. The role of the corporation then is to manage its businessunits and products so that each is competitive and so that each contributes to

    corporate purposes.

    http://en.wikipedia.org/wiki/Group_thinkhttp://en.wikipedia.org/wiki/Group_thinkhttp://en.wikipedia.org/wiki/Marketing_myopiahttp://en.wikipedia.org/wiki/Systemic_biashttp://en.wikipedia.org/wiki/Group_thinkhttp://en.wikipedia.org/wiki/Group_thinkhttp://en.wikipedia.org/wiki/Marketing_myopiahttp://en.wikipedia.org/wiki/Systemic_bias
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    Consider Textron, Inc., a successful conglomerate corporation that pursues

    profits through a range of businesses in unrelated industries. Textron has

    four core business segments:

    Aircraft - 32% of revenues

    Automotive - 25% of revenues

    Industrial - 39% of revenues

    Finance - 4% of revenues.

    While the corporation must manage its portfolio of businesses to grow and

    survive, the success of a diversified firm depends upon its ability to manageeach of its product lines. While there is no single competitor to Textron, we

    can talk about the competitors and strategy of each of its business units. In

    the finance business segment, for example, the chief rivals are major banks

    providing commercial financing. Many managers consider the business level

    to be the proper focus for strategic planning.

    Corporate Level Strategy

    Corporate level strategy fundamentally is concerned with the selection of

    businesses in which the company should compete and with the development

    and coordination of that portfolio of businesses.

    Corporate level strategy is concerned with:

    Reach - defining the issues that are corporate responsibilities; these

    might include identifying the overall goals of the corporation, the

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    types of businesses in which the corporation should be involved, and

    the way in which businesses will be integrated and managed.

    Competitive Contact - defining where in the corporation competition

    is to be localized. Take the case of insurance: In the mid-1990's,

    Aetna as a corporation was clearly identified with its commercial and

    property casualty insurance products. The conglomerate Textron was

    not. For Textron, competition in the insurance markets took place

    specifically at the business unit level, through its subsidiary, Paul

    Revere. (Textron divested itself of The Paul Revere Corporation in

    1997.)

    Managing Activities and Business Interrelationships - Corporate

    strategy seeks to develop synergies by sharing and coordinating staff

    and other resources across business units, investing financial

    resources across business units, and using business units to

    complement other corporate business activities. Igor Ansoff

    introduced the concept of synergy to corporate strategy.

    Management Practices - Corporations decide how business units are

    to be governed: through direct corporate intervention (centralization)

    or through more or less autonomous government (decentralization)

    that relies on persuasion and rewards.

    Corporations are responsible for creating value through their businesses.

    They do so by managing their portfolio of businesses, ensuring that the

    businesses are successful over the long-term, developing business units, and

    sometimes ensuring that each business is compatible with others in the

    portfolio.

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    Business Unit Level Strategy

    A strategic business unit may be a division, product line, or other profit

    center that can be planned independently from the other business units of the

    firm.

    At the business unit level, the strategic issues are less about the coordination

    of operating units and more about developing and sustaining a competitive

    advantage for the goods and services that are produced. At the business

    level, the strategy formulation phase deals with:

    positioning the business against rivals

    anticipating changes in demand and technologies and adjusting the

    strategy to accommodate them

    influencing the nature of competition through strategic actions such as

    vertical integration and through political actions such as lobbying.

    Functional Level Strategy

    The functional level of the organization is the level of the operating

    divisions and departments. The strategic issues at the functional level are

    related to business processes and the value chain. Functional level strategies

    in marketing, finance, operations, human resources, and R&D involve the

    development and coordination of resources through which business unit

    level strategies can be executed efficiently and effectively.

    Functional units of an organization are involved in higher level strategies by

    providing input into the business unit level and corporate level strategy, such

    as providing information on resources and capabilities on which the higher

    level strategies can be based. Once the higher-level strategy is developed,

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    the functional units translate it into discrete action-plans that each

    department or division must accomplish for the strategy to succeed.

    Vision, Mission, Goals, Purpose, Objectives

    Vision

    Serve as the resource and representative for facility management.

    Mission

    Advance the facility management profession by providing exceptional

    services, products, resources, and opportunities.

    Goals

    1. Support a community that fosters vitality, momentum and impact for

    the facility management professional. (Stakeholder Perspective)

    2. Anticipate and prioritize the resources required to enhance effective

    delivery of products and services. (Internal Perspective)

    3. Inspire passion for the facility management profession that compels

    facility practitioners to want to join the IFMA network, engages

    volunteer leaders and retains/attracts top-talent to the full-time staff.

    (Learning & Growth Perspective)

    4. Sustain IFMAs financial integrity to achieve and fulfill our mission.

    (Financial Perspective)

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    Purpose

    IFMA is a member-centered association that exists to guide and develop

    facility management professionals. In support of its members, IFMA

    promotes the facility management profession by providing leadership,

    recognition and standards of excellence.

    Objectives

    1. Provide and engage stakeholders with opportunities that expand andleverage their collective knowledge and experiences

    2. Provide career essentials for facility management professionals to

    advance their careers

    3. Magnify the importance of the facility management professional

    worldwide

    4. Ensure appropriate governance, systems and processes are in place

    5. Understand and respond to stakeholder needs

    6. Strengthen and build collaborative relationships that advance the FM

    profession

    7. Motivate and inspire members to become committed and involved

    volunteer leaders

    8. Create a culture and provide resources that instill innovation, passion,

    challenge and meaning with staff and volunteers

    9. Maintain viable fiscal position through good financial management,

    diversification of revenues and optimized asset utilization.

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    Strategic Business Units Defined

    A strategic business unit is a significant organization segment that is

    analyzed to develop organizational strategy aimed at generating future

    business or revenue.

    Although SBUs vary drastically in form, they have some common

    characteristics. All SBUs are a single business (or collection of businesses),

    have their own competitors and a manager accountable for operations, and

    can be independently planned for.

    http://www.1000ventures.com/business_guide/sbu.html#SBUshttp://www.1000ventures.com/business_guide/sbu.html#SBUshttp://www.1000ventures.com/business_guide/sbu.html#SBUshttp://www.1000ventures.com/business_guide/sbu.html#SBUs
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    Characteristics of Strategic Business Units (SBUs)

    1. It is a single business or collection of related businesses2. It has its own competitors

    3. It has a manager who is accountable for its operation

    4. It is an area that can be independently planned for within the

    organization

    Strategic business unit (SBU)

    Autonomous division ororganizationalunit, small enough to be flexible and

    large enough to exercisecontrol over most of the factors affecting its long-

    term performance. Because SBUs are more agile (and usually have

    independentmissions and objectives), they allow the owning conglomerate

    to respond quickly to changing economic ormarket situations.

    Corporate planning: differentiation and Integration of the

    process

    PLANNING: There are various descriptions of corporate planning

    methodology and each is done in accordance with the professional and/or

    academic preferences of the writer.

    Regardless of the model selected, the corporate planning process can be

    adopted successfully if it is applied after studying the internal and external

    environment in which the company or the authority exists.

    http://www.businessdictionary.com/definition/division.htmlhttp://www.businessdictionary.com/definition/organizational.htmlhttp://www.businessdictionary.com/definition/unit.htmlhttp://www.businessdictionary.com/definition/exercise.htmlhttp://www.businessdictionary.com/definition/control.htmlhttp://www.businessdictionary.com/definition/factor.htmlhttp://www.investorwords.com/2885/long_term.htmlhttp://www.investorwords.com/2885/long_term.htmlhttp://www.businessdictionary.com/definition/performance.htmlhttp://www.businessdictionary.com/definition/independent.htmlhttp://www.businessdictionary.com/definition/mission.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/conglomerate.htmlhttp://www.investorwords.com/1639/economic.htmlhttp://www.businessdictionary.com/definition/market.htmlhttp://www.businessdictionary.com/definition/division.htmlhttp://www.businessdictionary.com/definition/organizational.htmlhttp://www.businessdictionary.com/definition/unit.htmlhttp://www.businessdictionary.com/definition/exercise.htmlhttp://www.businessdictionary.com/definition/control.htmlhttp://www.businessdictionary.com/definition/factor.htmlhttp://www.investorwords.com/2885/long_term.htmlhttp://www.investorwords.com/2885/long_term.htmlhttp://www.businessdictionary.com/definition/performance.htmlhttp://www.businessdictionary.com/definition/independent.htmlhttp://www.businessdictionary.com/definition/mission.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/conglomerate.htmlhttp://www.investorwords.com/1639/economic.htmlhttp://www.businessdictionary.com/definition/market.html
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    Regardless of how successfully it was adopted elsewhere, the

    implementation of a patent model without careful investigation of the

    environment and the management systems, command practices and culture

    of the organization will certainly lead to a marginal process.

    Corporate planning

    The central theme of the contemporary organizational environment is change

    and renewal. Much has been written on this theme. Critics have described

    todays change and renewal as volatile, pervasive and significantly

    discontinuous.

    While many strategists discuss how change is affecting us psychologically,

    socially and organizationally the futurists emphasize what changes the

    future will bring.

    The centrality and necessity of change, hence, should be a fundamental

    consideration in the management of contemporary organizations or a part of

    an organization.

    Also, it is essential for the strategists of organizational change to understand

    the continuous organization - environment interactions and to respond to

    such environmental fluctuations.

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    The sequential process

    * Assess the previous periods plan which includes:

    a. a review of the organizations progress against the plan.

    b. an examination of specific aspects / problems encountered.

    c. a review of the planning material which is current.

    d. an examination of the issues that needs to be included in the future.

    * Analyze the customers/ users level of satisfaction with products /services provided. All noticeable problems or prospects must be considered

    during this stage.

    * Set the direction of the organizations strategy. CEO or the top manager of

    the organization provides the insights of the planning process to all his or

    her assisting staff.

    * Assess the organizations internal environment. This includes the

    examination of physical, human and financial resources of the company.

    Internal assessment deals with the organizational climate, culture and

    general working conditions. The strengths and weaknesses of the

    organization are usually addressed at this, level.

    * Assess the organizations external environment.

    * Identify and evaluate the strategic goals.

    The goals must relate to the SWOT factors. Also the goals should address a

    range of performance outcomes the organization could achieve in order to

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    fulfill its mission. For example: to increase the market share of product

    ABC.

    Generally there goals are broad statements that guide the further planning

    efforts of the organization.

    * Choose the goals from among the list of long range goals that will form a

    framework for this periods operational planning.

    * Prepare the corporate plan. In essence, this step deals with documenting

    the planning process up to that point. Basically the plan is comprised of:

    A. the top managers assessment of the company and his/her specific

    direction under which the company must move.

    B. a concise analysis of the companys environment.

    C. a detailed discussion of the SWOT factors.

    D. listing of key goals including how various short - range goals will provide

    guidance to support the long - range goals and illustrating its value as a

    vehicle for communication.

    E. develop operational plan to guide the execution of the goals. These short -

    to intermediate term objectives define the major results that should be

    accomplished for the organization to march closer to the goals.

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    Some terms for strategic evaluation

    There is no shortage of terms used to describe different elements of project

    work and it is easy to get lost in a sea of jargon. When conducting a strategicevaluation, however, there are a few terms and concepts worth knowing.

    Most projects will have the following distinguishable elements:

    Project Inputs which are the resources and revenues invested in

    running the project. Depending on the particular project, project inputs

    may include volunteer time, skills, funds received, in-kind contributions,

    matching funds, income generated revenue and capital assets.

    Project Activities which are the things the project does with its

    resources and revenues. Projects engage in a vast range of activities,

    of which a few of the possibilities are listed below:

    o providing services to people;

    o running educational and training courses;

    o providing opportunities for people from different backgrounds to

    interact;

    o organising festivals, sporting and cultural events;

    o enabling civic engagement and participation;

    o providing services to specific types of organisation;

    o providing leisure opportunities and;

    o producing publications.

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    Project Outputs are the immediate results achieved by the project.

    As with project activities, projects can deliver a huge variety of

    Outputs. A few possibilities are listed below:

    O people gaining qualifications;

    O new participants in cultural and other sporting activities;

    O improved access to information and resources;

    O people and organizations receiving services;

    O number of new jobs created;

    O number of people engaged in challenging discrimination and

    Prejudice;

    O increase in the proportion of people who say that they

    Regularly meet and talk with people from different ethnic

    Backgrounds.

    Project Outcomes are the projects long-term goals and desired

    Improvements. Within Oldham Borough, the projects long-term

    Goals and desired improvements may link with priorities in the Local

    Area Agreement, the Community Cohesion Strategy, the

    Community Strategy and Oldham Beyond. These might include

    Things such as:

    O developing a highly-skilled and well-educated local

    Population;

    O eliminating health inequalities;

    O eliminating discrimination and harassment;

    O good community relations throughout the Borough;

    O eliminating poverty;

    O avoidance of a low wage economy.

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    Project Impacts on community cohesion include the projects effects

    On:

    O inequalities;

    O community relations across various domains of difference

    Including age, sexuality, disability, social background and ethnic

    Group;

    O opportunities for meaningful social interaction between people

    From similar and from different backgrounds;

    O engagement in local democracy;

    O involvement in social, political and cultural life;

    O the fairness and transparency (and perceived fairness and

    Transparency) of service provision, access to services and

    Resource allocation.

    Evaluating Causal Connections between Activities,

    Outputs and Outcomes

    The purpose of evaluating causal connections between activities, outputs and

    Outcomes, is to explore whether or not the projects assumptions about the

    Likely outcomes and effects of its activities and outputs are well-founded.

    By Identifying places where the causal chain between activity, output and

    Outcome may potentially break down; the evaluator may play a role in

    Identifying supplementary activities which may improve the likelihood of

    the project contributing to its desired outcomes. To do this, the evaluator

    should consider:

    May the projects activities have unplanned but predictable adverse

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    Affects that impact on its ability to reach the desired outcome?

    Are there other factors that are likely to intervene between?

    achievement of outputs and the desired outcome?

    Asking such questions will sometimes lead the project to broaden its remit

    or examine possibilities for liaison and joint working with other

    organizations and Institutions.

    Evaluation Purposes

    There are various ways of describing variouspurposes of evaluation activity,

    e.g. design, developmental, formative, implementation, process, impact,

    outcome and summative. The evaluation purpose is best understood as

    identifying what evaluation activity is going to be used for. Recent years

    have seen evaluation move to develop types of evaluation that are of use

    right across a programme lifecycle. It should be noted that any particular

    evaluation activity can have more than one purpose.

    The range of evaluation terms are used in various ways in the evaluation

    literature. One way of defining them is as follows:

    Design, developmental, formative, implementation evaluative

    activity designed to improve the design, development, formation

    and implementation of a programme.

    Process evaluation to describe the process of a programme.

    Because the term process could conceivably cover all of a

    programme from its inception to its outcomes, it is conceptually

    useful to limit the term process evaluation to activity describing

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    the programme during the course of the programme, i.e. once it

    has been initially implemented.

    Impact, outcome and summative looking at the impact and

    outcome of a programme, and (in the case of summative, making

    an overall evaluative judgment about the worth of a programme).

    One useful way of distinguishing between the purposes of evaluation is to

    group them into the following three overall types:

    Formative Evaluation

    Formative Evaluation includes the terms -

    design/developmental/formative/implementation evaluation it is any

    evaluation activity directed at improving a programme's design, planning,

    development and implementation. Formative evaluation is a disciplined

    approach to ensuring that a programme is well developed. It has been

    developed relatively recently in the history of the evaluation profession

    (McClintock 1986). There are various models for how it can be undertaken,

    but it is directed at ensuring independent constructively critical input into

    programme development. For instance, a separately funded independent

    formative evaluation team can work alongside programme planners. This

    team critically assesses the decisions that are being made and can provide

    regular, formal feedback to programme planners and programme funders.

    Formative evaluation may use both quantitative and qualitative techniques.

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    Process Evaluation

    Process Evaluation is any evaluative activity directed at describing or

    documenting what actually happened in the contest or course of a

    programme. Process evaluation is sometimes seen to include formative

    evaluation, but it is conceptually useful to separate formative evaluation out

    as a specific type of evaluation. Process evaluation can provide extremely

    useful information about what actually happened in a programme. It can be

    crucial for communicating best practice to others who want to replicate

    elements of a successful programme. For instance, taking as an example a

    Programme X that has been shown to be effective after an outcome

    evaluation. Just knowing that Programme X is effective is, in itself,

    insufficient for someone elsewhere to replicate the programme. Process

    evaluation gives someone who wants to replicate a programme detailed

    information on what was done, what problems arose and the what solutions

    were adopted.

    A second use of process evaluation is in the interpretation of outcome

    evaluation results. For instance, a programme may not have proved

    successful on outcome evaluation. However, when looking at the process

    evaluation from this programme, it will be clear that the negative outcome

    was a result of specific events that derailed the programme. In the light of

    this one should not dismiss the possibility that this type of programme, if

    implemented as planned, could be effective.

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    A third use of process evaluation is when it is used to examine the context of

    a programme and the decision making leading up to that programme being

    introduced. For instance there may be problem definition creep in the

    early decision making phase about the programme objectives and what type

    of programme should be run.

    Outcome Evaluation

    Outcome evaluation also includes the terms - intermediate outcome

    evaluation and impact evaluation - it is any evaluative activity directed at

    determining the positive or negative intermediate or longer-term outcomes

    of a programme. It is sometimes also referred to as summative evaluation,

    which also includes the aspect of making an overall assessment of a

    programme. Outcome evaluation looks at whether a programme has

    achieved the outcomes it is seeking. Where this can be done, this is very

    useful information for stakeholders, particularly if it is in a form in whichthe effectiveness of the programme being evaluated can be compared with

    other strategies for achieving the same outcomes. In real world programmes

    the final outcomes being sought by a programme may take a number of

    years to achieve and may be outside the timeframe of the measurements

    being undertaken in an evaluation. Given this, there is a way in which

    evaluation designers can give outcome-type results earlier within time

    frames that are more useful for policy decision-making. This entails the

    development of an outcome hierarchy for a programme or policy. This is a

    set of outcomes that range from immediate outcomes of the programme or

    policy through to intermediate and then final outcomes. An argument needs

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    to be mounted that each step in the outcome hierarchy is likely to imply that

    the next step will occur. If this argument is sound then intermediate

    outcomes can be measured at an earlier level, within reasonable time frames,

    and the assumption made that there is a good chance that the later steps in

    the outcome hierarchy will also take place in due course.

    In the past, outcome evaluation in a number of sectors, has tended to be

    largely quantitative. This notion is now being challenged and there is

    discussion of the argument for using qualitative outcome evaluation in

    addition to the use of qualitative evaluation for other evaluation purposes.

    The three purposes for evaluation can be related to three stages in the

    programme life-cycle, thestart, middle andfinish of the programme.

    Evaluation Methods

    In addition to evaluation purposes there are evaluation methods. These are

    the specific research and related methods which evaluators use in their day-

    to-day work. Evaluators will draw on any method that can assist in

    answering the questions that are being asked in an evaluation. In the past

    these tended to be methods originating from the physical sciences, but now

    they also draw extensively on methods developed in the social and

    organisational sciences and the humanities.

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    Evaluation Designs

    Evaluation designs are the way in which the evaluation ingredients

    approach, purposes and methods are put together into the final evaluation

    in an attempt to answer a set of evaluation questions. Evaluation design will

    indicate the overall evaluation approach, the mix of formative, process and

    outcome evaluation it is planned to carry out in the evaluation and the

    methods and analysis to be used. If there is to be an outcome evaluation

    within the evaluation, the design will specify which of the many types of

    outcome design are to be used.