Get insight on Strategic Management Process and its benefits
Strategic management is a continuous process of planning, implementing, evaluating, and modification of everything that is important for an organization to achieve its goals. Strategic management process is an important component of a business, especially when the company undertakes large and complex projects. This process enables the company to achieve the desired performance in the predetermined budget, timeline and other resources. It lowers the risk of failures of the project.
Do note that the strategic management process is a continuous one. While it may end with one project, the same process is followed over and again with other projects. It is very important to hire people who have good experience in this or at least hold a strategic management certificate because they have the necessary knowledge and skills to execute the process. In order to be skilled enough person can opt strategic management course.
To get deeper into what are the strategic management process is let’s explore it in detail. Strategic management is a four stage process.
- Planning - “A goal without a plan is just a wish”. Every project needs a robust plan to take it towards success. In the planning phase, you can set objectives and identify the ways to achieve them. The SWOT (Strength, Weakness, Opportunity and Threat) analysis of the project can give useful insights and reveal the important areas of improvement. For example, if the objective of an organisation is to open an office in an offshore location, planning phase would involve exploring the target audience, profit opportunities and what resources would be required.
- Implementation -This stage involves the execution of strategies for achieving the desired objectives. For ensuring success, employees must understand their roles and responsibilities. The activity measures give factual feedback with impact and area of improvement. The project managers pay attention to the smallest details for implementing changes.
- Evaluation and Control - The strategic management process does not end with implementation. In fact, the real test begins from there and lets you know if the project is heading in the right direction. Continuous assessment of the project serves as feedback and control measures to be taken. Many organizations use this stage for gap analysis to compare performance with the set goals.
- Modification - This stage involves rectifying the failures or weakness found during the process of evaluation. In case the improvements are a drastic turn from the original goals and require surplus allocation of resources, it is considered advisable to stop the project because it won’t be feasible anymore. On the contrary, if the strengths are analysed, they are implemented in other business areas. This stage is about refining the project further for better outcomes and embrace learning.
Importance of Strategic Management
- It guides the organization to move in the right direction by defining the goal and objectives.
- It assists the organization in becoming proactive by analysing the actions of the competitors and take necessary steps to compete in the market.
- It helps you to set the foundation for all the key decisions within the organization.
- It helps your organization to prepare for the future challenges and identify the new opportunities for the growth of the company.
- Strategic management is one of the best approach that helps company to survive in the fast changing dynamics environment.
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