The Advantages of Strategic Management
When speaking of strategic management, we are referring to the process where the management takes the initiative in representing the corporate leadership plan in order to efficiently and effectively utilize the available resources and improve the company’s productivity. In all actions under the strategic management, the process must reflect the organization’s policies, objectives, vision and mission.
In order to carry these strategies out, there should be a solid implementation of programs that will meet the organizations goals and use the company’s resources in the most effective way possible. Moreover, strategic management is considered a managerial level function which will look for the importance of goals rather than tactics.
Strategic Management vs. Tactical Management
Essentially, this means that the overall focus shifts from the tactical or “micro” level planning to the larger picture and the main goals of the organization. This is sometimes referred to as the strategic vs. tactical approach. Strategic planning is considered to be proactive and driven by goals whereas tactical planning is typically more reactionary and is driven by dilemma.
The presence of strategic management will provide direction to the company and keep smaller level tasks in line with the larger goals. Furthermore, this is not limited to managers of businesses but is also intended for stakeholders and directors or anyone who is in a control type capacity and responsible for managerial functions toward an end goal.
As a whole, strategic management is a sustainable process. Because of this, it will greatly impact as well as provide control for the industries and organizations that implement it as a main priority. In addition, strategic management is helpful when it comes to evaluating the validity of objectives and even analyzing competitors in efforts to devise ways to better compete with the current market. Ideally, the reassessment of the methodology and tools used in a company should be conducted quarterly or as often as possible especially when the competition is neck to neck. In case your business is far superior in the marketplace than that of your competitors, the evaluation can be done annually or less frequently.
This evaluation is performed not just to come up with the strategy that will combat your competitors, but also, to assess whether or not improvements are needed after the initial steps in the strategic management process have been started. There is also the concept of ongoing reassessment which is done in order to consider some of the new technological challenges, political interest, changes in economic and social aspect as well as your new competitors. In short, we need to constantly evaluate our plan to make sure that it keeps pace with an ever changing society and economic climate.
Main Concepts Of Strategic Management
There are some specific steps concerned in taking a strategic management approach. The first step is all about dissemination and compilation of the mission statement of the company. The purpose of this is to ascertain the actions and scopes of the company. There are several processes involved in the initial strategy formation. These are the consideration of external and internal factors affecting the process outcomes, evaluation of your competitors and your organization as well as analysis of the macro-environment and micro-environment. Basically, this is the information gathering stage. In order to know how to get somewhere, you must first determine where you are and where you want to be.
Once the analysis stage is already done, there is already initiation of objectives setting. The involvement of the concerned parties is said to be ongoing in order to maintain momentum and adherence to the plan as it was originally intended. This is the process of strategic management which is concerned mainly with the development of company’s objective summary, strategic plans implementation and company’s vision.
This is where the logistical and realistic planning come into play and it becomes clearer what exactly needs to be done and how to do it. Once there is an implementation of a strategic plan, there might be management changes that will happen. It is essential that the management change must provide positive effects to the company in order to attain the objectives and come up with success moving forward.
Strategic Plans Offer A Roadmap To Business Success
At this point, there is a road map of sorts that will guide the implementation process to an end. This is not strictly a script of action but rather a living breathing process that must be able to flex and adapt to obstacle that may and surely will arise. From here on, the process continues step-by-step solving problems as it progresses until all goals are met and the Strategic planning has become ingrained in all processes and decision in the company’s leadership initiative.
In case you are new to business management, it is imperative that you become familiar with strategic management. The benefits of this type of planning are immeasurable. There are lots of important positive effects that you can get out of this approach when it is implemented with care, patience and when it is focused on the right overall goals.