An internal factor evaluation (IFE) is an internal management tool and matrix used for auditing or evaluating the primary strengths and weaknesses within the operations of a company. Using this tool can help evaluate how well the company performs in any given area selected for review. When approaching such an analysis, the company completing the review may choose to use the "Balanced Scorecard" method when it comes to completing an IFE for Google.
Identifying Google's Internal Factors
The first approach Google might take on orchestrating an IFE is to conduct an audit to identify both Google's internal strengths and weaknesses in business functions such as finance, accounting, operations, information technology, research and development and more. Google might start with identifying 10 to 20 key internal factors, broken into strengths and weaknesses that are weighted, rated and then scored.
After establishing the list of internal factors by strength and weakness, a weight is assigned to each element on a scale from 0 to 100. The idea behind assigning the weight to Google's identified factors establishes the importance the element plays within the internal structure of the company. The sum of all weights must calculate to 100 when added together. As Google places high importance on its employees, it may weight employees high on its strength lists, while identifying market saturation might be weighted as a weakness.
Assigning a Rating
After weighting all the factors to total to 100, Google's IFE would then be used to determine a rating and a score for each factor. The standard rating when creating the IFE matrix assigns a major strength with a "4" rating and a weakness as a "1" rating. After the rating is assigned, a score is calculated by multiplying the weight percentage by the rating. For instance, employees might receive a score of .40 based upon multiplying 10 percent (the weight) by a 4 rating. After scoring individual scores are added together to determine Google's company wide rating. A score of 4 is considered high, 1 is low, with the average at about 2.5.
IFE Matrix Results
Instead of conducting this internal audit within the company, Google might choose to hire an outside firm to complete the IFE Matrix for objectivity and deliver the results to top management. Google's management would then review the IFE Matrix and make the changes necessary to improve internal processes and procedures. Areas identified with strengths would be left as is, while Google might considering revamping areas identified as weak or with low scores and ratings. The IFE Matrix completed for Google would not be shared externally, as it is an internal tool used to improve internal processes and procedures only.
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