Strategic management in the company is about creating an environment for the company’s success. This includes the planning process as well as monitoring and implementing strategies, and encouraging employees to prioritize their work that support strategic goals. This involves identifying and analyzing opportunities, risks and business problems. This kind of management is typically performed by the top management, however creative ideas can come from employees at any level. Companies employ descriptive and prescriptive strategic management techniques based on renowned managerial theories and methods to assist them in making decisions in distributing resources and achieving goals.
The first step in implementing a strategic management is assessing the current situation of the company. This involves assessing the organization’s internal structure as well as its capabilities and resources as well evaluating any strategic plans. Companies can also utilize tools such as SWOT analysis to determine strengths potential, weaknesses, opportunities, and threats in the market.
After the initial review is completed, companies must prepare or update the vision statement and strategic goals for the future of the business. These goals could range from increasing revenue to cutting costs. Typically they will have an objective that can be achieved over time.
It’s not enough to develop the strategy to guarantee that it’s successful however. Implementing the plan is the final phase of strategic management. This requires excellent communication and coordination between levels and departments. Selecting and implementing a strategy management framework such as the Balanced Scorecard, Theory of Change or Objectives and Key Results (OKR) is crucial in coordinating and directing the various aspects of the strategic plan.