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Cracking the Organisational Appraisal Code
Strategies and techniques for assessing organisational strengths, weaknesses and
performance.​
Do you know how well your
organisation is positioned to
achieve its goals?
Organisational
Appraisal; an
overview
While many organisations are trying to reduce
costs, increase revenue, stay competitive and
responsive to the ever-changing business
environment, internal analysis (also known as
corporate appraisal) remains essential for
continuous improvement.
“
Click here to read: Cracking the Employee Promotion Code
What is Organisational
Appraisal
Organisational Appraisal refers to the process of
evaluating the overall performance, effectiveness
and impact of an organisation as a whole. This
includes evaluating various aspects of the
organisation such as its structure, culture,
processes, management, strategy, and
outcomes.
The purpose of Organisational Appraisal is to
identify areas of strength and weakness and to
suggest ways to improve overall performance
and achieve organisational goals.
Factors Influencing Organisational Appraisal
Trends of Results
Risks
Production Activity
Finance Resources
Organisation Culture
Corporation Capability
Change in Leadership in the organisation
Technology
Profit Sources
Stakeholder Involvement
Utilization of Resources Systems
Organisational appraisal helps
businesses to assess their
performance in terms of efficiency,
effectiveness, and impact.
To assess overall performance
By conducting an appraisal,
organisations can identify areas
for improvement and take steps
to enhance their operations.
To identify areas for
improvement
It can be used to inform
decisions about resource
allocation, such as which
departments or initiatives need
more support.
To inform resource allocation
Regular organisational appraisal
helps to create a culture of
continuous improvement, where
organizations are always looking for
ways to enhance their operations.
To foster a culture of continuous
improvement
appraisal helps to increase
accountability by providing a
systematic evaluation of the
organisation and its performance.
To increase accountability
Results of an organisational appraisa
provide valuable insights that can be
used to inform decisions about
organisational changes, resource
allocation, and future planning.
support effective decision-making
Why conduct
Organisational
Appraisal?
Factors to be Analysed in Organisational Appraisal
02
0
4
0
6
05
03
01
Organisational
Capability
Synergistic
Effect
Competencies
Weaknesses
Strengths
Strategic
Advantage
Organisational Resources Organisational Behaviour
+
Approaches to Organisational
Appraisal
⮚ Identify strategic factors
⮚ Research the strategic significance of
the Factors
⮚ Analyse the strengths and weaknesses
of the most important success factors
⮚ Prepare an advantage-based strategic
profile
⮚ Link strategic advantages and
opportunities
TECHNIQUES FOR
ORGANISATIONAL
APPRAISAL
Methods/Techniques for Organisational Appraisal
1. Value Chain Analysis
2. Quantitative Analysis
3. Comparative analysis
4. Comprehensive Analysis
5. SWOT Analysis
6. McKinsey’s 7 S
Framework
01
02
03
04
05
06
Techniques for
Organisational
Appraisal
Value Chain
Analysis
Segments value chain into:
1. Primary
2. Secondary
Quantitative
Analysis
i. Financial Analysis
ii. Nin-financial Analysis
Comparative
Analysis
i. History
ii. Industry norms
iii. Benchmarking
Comprehensive Analysis
i. Key factor rating
ii. Balanced Scorecard
iii. Business Intelligence
Systems
SWOT Analysis
Strengths, weaknesses,
Opportunities, Threats,
McKinsey’s
7 S Framework
Strategies,
Structure,
Systems, Style,
Skills, Shared
values, and Staff
Click here to read: Running an Effective Strategy Review Meeting
01
It is a strategy tool used to
analyse internal firm activities. It
aims to recognise which
activities are the most valuable
to the organisation and which
could be improved to provide
competitive advantage
The value chain are segmented
into primary and secondary
activities
Value Chain
Analysis
01 Value Chain
Analysis
Segments value chain into:
1. Primary
2. Secondary
02
03
04
05
06
Techniques for
Organisational
Appraisal
Quantitative
Analysis
i. Financial Analysis
ii. Nin-financial Analysis
McKinsey’s
7 S Framework
Strategies, Structure,
Systems, Style, Skills,
Shared values, and Staff
Comprehensive Analysis
i. Key factor rating
ii. Balanced Scorecard
iii. Business Intelligence
Systems
SWOT Analysis
Strengths, weaknesses,
Opportunities, Threats, Comparative
Analysis
i. History
ii. Industry norms
iii. Benchmarking
02 The analysis of a company's
effectiveness using figures is one of the
most widely employed techniques. It
helps to assess performance, strengths
and weaknesses.
A quantitative analysis can be done
using:
i. Financial Analysis: aim to assess
the financial health of the company.
i. Non-financial Analysis: aids in
assessing the organisation.
Quantitative Analysis
01
02
Quantitative
Analysis
i. Financial Analysis
ii. Nin-financial Analysis
03
04
05
06
Value Chain
Analysis
Segments value chain into:
1. Primary
2. Secondary
Techniques for
Organisational
Appraisal
McKinsey’s
7 S Framework
Strategies, Structure,
Systems, Style, Skills,
Shared values, and Staff
i. Key factor rating
ii. Balanced Scorecard
iii. Business Intelligence
Systems
SWOT Analysis
Strengths, weaknesses,
Opportunities, Threats,
Comprehensive Analysis
Comparative
Analysis
i. History
ii. Industry norms
iii. Benchmarking
01
02
03
Comparative
Analysis
i. History
ii. Industry norms
iii. Benchmarking
04
05
06
03When they are distinct and
exclusive, an organisation's
strengths and weaknesses give
it a competitive advantage. As a
result, a company should
assess its capabilities in relation
to those of its competitors.
It can be done using three (3)
base:
i. History
ii. Industry Norms
iii. Benchmark
Comparative Analysis
Techniques for
Organisational
Appraisal
McKinsey’s
7 S Framework
Strategies, Structure,
Systems, Style, Skills,
Shared values, and Staff
SWOT Analysis
Strengths, weaknesses,
Opportunities, Threats,
Value Chain
Analysis
Segments value chain into:
1. Primary
2. Secondary
Quantitative
Analysis
i. Financial Analysis
ii. Nin-financial Analysis
Comprehensive Analysis
i. Key factor rating
ii. Balanced Scorecard
iii. Business Intelligence
Systems
01
02
03
04
Comprehensive Analysis
i. Key factor rating
ii. Balanced Scorecard
iii. Business Intelligence
Systems
05
06
04
offers a comprehensive representation of
organisational strengths and weaknesses. The
techniques used are:
i. Key factor rating: key factors are analysed to judge
their positive and negative impact on the functioning
of the organisation.
ii. Balanced Scorecard: It integrates different
perspectives with vision and strategy to present a
comprehensive and balanced picture of organisational
performance.
iii. Business Intelligence systems: Data from internal
and external sources are used to estimate the
company’s strategic directions and operational
performance.
Comprehensive Analysis
Techniques for
Organisational
Appraisal
SWOT Analysis
Strengths, weaknesses,
Opportunities, Threats,
Value Chain
Analysis
Segments value chain into:
1. Primary
2. Secondary
Quantitative
Analysis
i. Financial Analysis
ii. Nin-financial Analysis
McKinsey’s
7 S Framework
Strategies, Structure,
Systems, Style, Skills,
Shared values, and Staff
Comparative
Analysis
i. History
ii. Industry norms
iii. Benchmarking
01
02
03
04
05
SWOT Analysis
Strengths, weaknesses,
Opportunities, Threats,
06
05
SWOT analysis is an organizational appraisal
technique that helps in understanding the internal
and external environment
Strengths (S): A competency that helps a company
obtain an advantage over its competitors is called
strength.
Weakness (W): a restriction or constraint that gives
the organisation a competitive disadvantage.
Opportunity (O): an encouraging condition in
the environment.
Threat (T): an adverse condition in the environment.
Strength and weaknesses can be identified through
organisational appraisal
or analysis of the internal environment.
SWOT Analysis
Techniques for
Organisational
Appraisal
McKinsey’s
7 S Framework
Strategies, Structure,
Systems, Style, Skills,
Shared values, and Staff
Quantitative
Analysis
i. Financial Analysis
ii. Nin-financial Analysis
Value Chain
Analysis
Segments value chain into:
1. Primary
2. Secondary
Comprehensive Analysis
i. Key factor rating
ii. Balanced Scorecard
iii. Business Intelligence
Systems
Comparative
Analysis
i. History
ii. Industry norms
iii. Benchmarking
01
02
03
04
05
06
McKinsey’s
7 S Framework
Strategies,
Structure, Systems,
Style, Skills, Shared
values, and Staff
06
The McKinsey 7S Framework is a
management system that highlights seven
internal elements of an organisation that
need to align for it to be successful.
It also can be used to examine the likely
effects of future changes in the organisation,
or to align departments and processes
The seven S’s stand for Strategies,
Structure, Systems, Style, Skills of
employees, Shared values, and Staff.
Mckinsey’s 7 S
Framework
Techniques for
Organisational
Appraisal
Quantitative
Analysis
i. Financial Analysis
ii. Nin-financial
Analysis
Value Chain
Analysis
Segments value chain into:
1. Primary
2. Secondary
SWOT Analysis
Strengths, weaknesses,
Opportunities, Threats,
Comprehensive Analysis
i. Key factor rating
ii. Balanced Scorecard
iii. Business Intelligence
Systems
Comparative
Analysis
i. History
ii. Industry norms
iii. Benchmarking
Benefits of organisational appraisal
Improved employee morale
Regular organisational appraisal can help to improve
employee morale or motivate them by providing clear
and constructive feedback, and recognising good
performance.
Increased transparency
Organisational appraisal promotes transparency and
helps to build trust with stakeholders by providing a
comprehensive and objective evaluation of the
organisation.
Improved performance:
It helps to identify areas for improvement,
leading to improved performance and
better outcomes.
The benefits of organisational appraisal are numerous and can have a positive impact on an organisation's
performance and success. Some of the key benefits include:
Click here to read: How to Improve Your Employee Performance Evaluation Process
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Cracking The Organisational Appraisal Code

  • 1. Cracking the Organisational Appraisal Code Strategies and techniques for assessing organisational strengths, weaknesses and performance.​
  • 2. Do you know how well your organisation is positioned to achieve its goals?
  • 3. Organisational Appraisal; an overview While many organisations are trying to reduce costs, increase revenue, stay competitive and responsive to the ever-changing business environment, internal analysis (also known as corporate appraisal) remains essential for continuous improvement. “ Click here to read: Cracking the Employee Promotion Code
  • 4. What is Organisational Appraisal Organisational Appraisal refers to the process of evaluating the overall performance, effectiveness and impact of an organisation as a whole. This includes evaluating various aspects of the organisation such as its structure, culture, processes, management, strategy, and outcomes. The purpose of Organisational Appraisal is to identify areas of strength and weakness and to suggest ways to improve overall performance and achieve organisational goals.
  • 5. Factors Influencing Organisational Appraisal Trends of Results Risks Production Activity Finance Resources Organisation Culture Corporation Capability Change in Leadership in the organisation Technology Profit Sources Stakeholder Involvement Utilization of Resources Systems
  • 6. Organisational appraisal helps businesses to assess their performance in terms of efficiency, effectiveness, and impact. To assess overall performance By conducting an appraisal, organisations can identify areas for improvement and take steps to enhance their operations. To identify areas for improvement It can be used to inform decisions about resource allocation, such as which departments or initiatives need more support. To inform resource allocation Regular organisational appraisal helps to create a culture of continuous improvement, where organizations are always looking for ways to enhance their operations. To foster a culture of continuous improvement appraisal helps to increase accountability by providing a systematic evaluation of the organisation and its performance. To increase accountability Results of an organisational appraisa provide valuable insights that can be used to inform decisions about organisational changes, resource allocation, and future planning. support effective decision-making Why conduct Organisational Appraisal?
  • 7. Factors to be Analysed in Organisational Appraisal 02 0 4 0 6 05 03 01 Organisational Capability Synergistic Effect Competencies Weaknesses Strengths Strategic Advantage Organisational Resources Organisational Behaviour +
  • 8. Approaches to Organisational Appraisal ⮚ Identify strategic factors ⮚ Research the strategic significance of the Factors ⮚ Analyse the strengths and weaknesses of the most important success factors ⮚ Prepare an advantage-based strategic profile ⮚ Link strategic advantages and opportunities
  • 10. Methods/Techniques for Organisational Appraisal 1. Value Chain Analysis 2. Quantitative Analysis 3. Comparative analysis 4. Comprehensive Analysis 5. SWOT Analysis 6. McKinsey’s 7 S Framework 01 02 03 04 05 06 Techniques for Organisational Appraisal Value Chain Analysis Segments value chain into: 1. Primary 2. Secondary Quantitative Analysis i. Financial Analysis ii. Nin-financial Analysis Comparative Analysis i. History ii. Industry norms iii. Benchmarking Comprehensive Analysis i. Key factor rating ii. Balanced Scorecard iii. Business Intelligence Systems SWOT Analysis Strengths, weaknesses, Opportunities, Threats, McKinsey’s 7 S Framework Strategies, Structure, Systems, Style, Skills, Shared values, and Staff Click here to read: Running an Effective Strategy Review Meeting
  • 11. 01 It is a strategy tool used to analyse internal firm activities. It aims to recognise which activities are the most valuable to the organisation and which could be improved to provide competitive advantage The value chain are segmented into primary and secondary activities Value Chain Analysis 01 Value Chain Analysis Segments value chain into: 1. Primary 2. Secondary 02 03 04 05 06 Techniques for Organisational Appraisal Quantitative Analysis i. Financial Analysis ii. Nin-financial Analysis McKinsey’s 7 S Framework Strategies, Structure, Systems, Style, Skills, Shared values, and Staff Comprehensive Analysis i. Key factor rating ii. Balanced Scorecard iii. Business Intelligence Systems SWOT Analysis Strengths, weaknesses, Opportunities, Threats, Comparative Analysis i. History ii. Industry norms iii. Benchmarking
  • 12. 02 The analysis of a company's effectiveness using figures is one of the most widely employed techniques. It helps to assess performance, strengths and weaknesses. A quantitative analysis can be done using: i. Financial Analysis: aim to assess the financial health of the company. i. Non-financial Analysis: aids in assessing the organisation. Quantitative Analysis 01 02 Quantitative Analysis i. Financial Analysis ii. Nin-financial Analysis 03 04 05 06 Value Chain Analysis Segments value chain into: 1. Primary 2. Secondary Techniques for Organisational Appraisal McKinsey’s 7 S Framework Strategies, Structure, Systems, Style, Skills, Shared values, and Staff i. Key factor rating ii. Balanced Scorecard iii. Business Intelligence Systems SWOT Analysis Strengths, weaknesses, Opportunities, Threats, Comprehensive Analysis Comparative Analysis i. History ii. Industry norms iii. Benchmarking
  • 13. 01 02 03 Comparative Analysis i. History ii. Industry norms iii. Benchmarking 04 05 06 03When they are distinct and exclusive, an organisation's strengths and weaknesses give it a competitive advantage. As a result, a company should assess its capabilities in relation to those of its competitors. It can be done using three (3) base: i. History ii. Industry Norms iii. Benchmark Comparative Analysis Techniques for Organisational Appraisal McKinsey’s 7 S Framework Strategies, Structure, Systems, Style, Skills, Shared values, and Staff SWOT Analysis Strengths, weaknesses, Opportunities, Threats, Value Chain Analysis Segments value chain into: 1. Primary 2. Secondary Quantitative Analysis i. Financial Analysis ii. Nin-financial Analysis Comprehensive Analysis i. Key factor rating ii. Balanced Scorecard iii. Business Intelligence Systems
  • 14. 01 02 03 04 Comprehensive Analysis i. Key factor rating ii. Balanced Scorecard iii. Business Intelligence Systems 05 06 04 offers a comprehensive representation of organisational strengths and weaknesses. The techniques used are: i. Key factor rating: key factors are analysed to judge their positive and negative impact on the functioning of the organisation. ii. Balanced Scorecard: It integrates different perspectives with vision and strategy to present a comprehensive and balanced picture of organisational performance. iii. Business Intelligence systems: Data from internal and external sources are used to estimate the company’s strategic directions and operational performance. Comprehensive Analysis Techniques for Organisational Appraisal SWOT Analysis Strengths, weaknesses, Opportunities, Threats, Value Chain Analysis Segments value chain into: 1. Primary 2. Secondary Quantitative Analysis i. Financial Analysis ii. Nin-financial Analysis McKinsey’s 7 S Framework Strategies, Structure, Systems, Style, Skills, Shared values, and Staff Comparative Analysis i. History ii. Industry norms iii. Benchmarking
  • 15. 01 02 03 04 05 SWOT Analysis Strengths, weaknesses, Opportunities, Threats, 06 05 SWOT analysis is an organizational appraisal technique that helps in understanding the internal and external environment Strengths (S): A competency that helps a company obtain an advantage over its competitors is called strength. Weakness (W): a restriction or constraint that gives the organisation a competitive disadvantage. Opportunity (O): an encouraging condition in the environment. Threat (T): an adverse condition in the environment. Strength and weaknesses can be identified through organisational appraisal or analysis of the internal environment. SWOT Analysis Techniques for Organisational Appraisal McKinsey’s 7 S Framework Strategies, Structure, Systems, Style, Skills, Shared values, and Staff Quantitative Analysis i. Financial Analysis ii. Nin-financial Analysis Value Chain Analysis Segments value chain into: 1. Primary 2. Secondary Comprehensive Analysis i. Key factor rating ii. Balanced Scorecard iii. Business Intelligence Systems Comparative Analysis i. History ii. Industry norms iii. Benchmarking
  • 16. 01 02 03 04 05 06 McKinsey’s 7 S Framework Strategies, Structure, Systems, Style, Skills, Shared values, and Staff 06 The McKinsey 7S Framework is a management system that highlights seven internal elements of an organisation that need to align for it to be successful. It also can be used to examine the likely effects of future changes in the organisation, or to align departments and processes The seven S’s stand for Strategies, Structure, Systems, Style, Skills of employees, Shared values, and Staff. Mckinsey’s 7 S Framework Techniques for Organisational Appraisal Quantitative Analysis i. Financial Analysis ii. Nin-financial Analysis Value Chain Analysis Segments value chain into: 1. Primary 2. Secondary SWOT Analysis Strengths, weaknesses, Opportunities, Threats, Comprehensive Analysis i. Key factor rating ii. Balanced Scorecard iii. Business Intelligence Systems Comparative Analysis i. History ii. Industry norms iii. Benchmarking
  • 17. Benefits of organisational appraisal Improved employee morale Regular organisational appraisal can help to improve employee morale or motivate them by providing clear and constructive feedback, and recognising good performance. Increased transparency Organisational appraisal promotes transparency and helps to build trust with stakeholders by providing a comprehensive and objective evaluation of the organisation. Improved performance: It helps to identify areas for improvement, leading to improved performance and better outcomes. The benefits of organisational appraisal are numerous and can have a positive impact on an organisation's performance and success. Some of the key benefits include: Click here to read: How to Improve Your Employee Performance Evaluation Process
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