The strategic management process involves analyzing organisational capabilities and resources. It includes a SWOT analysis to assess an organisation’s strengths and weaknesses, as well as external forces and opportunities. The main goal of the SWOT analysis is to identify core competencies and establish an appropriate course of action. Once the objectives are clearly defined, strategic management will proceed to define an action plan that will help the organisation achieve these goals. The action plan must be focused and clearly relate to the strategic direction of the company.
Once a strategic plan has been defined, it is time to measure its effectiveness and determine what needs to be changed. The strategic management process does not require massive changes every month; rather, it should be a steady process of micro-adjustments to keep the plan current and realistic. A common pitfall of the strategic management process is the lack of accountability. It is critical to hold all managers and employees accountable for performance. Without accountability, the strategic management process is unworkable.
The strategic management process begins with evaluating the position of senior management and determining the organization’s mission and goals. A mission describes the core values of the organization, and should represent the direction of senior management. Goals, on the other hand, are the desired end results of the organization’s operating procedures. Typically, these are short-term, measurable objectives. In addition to evaluating the position of senior managers, environmental scanning also helps determine the impact of external and internal factors on the organization. The results of this assessment should be evaluated on a continuous basis.
Once the strategic intent is determined, the next step is to formulate the strategy. The purpose of the strategy is to identify how the firm wants to be perceived in the future. The objective of the mission statement should be stated clearly. It is the guiding principle of the entire business. It should also include the organisation’s values and purpose. It is essential for every organisation to define a mission statement, as this will tell what the organisation wants to achieve and why it exists.
After determining what direction to take, the strategic management process must assess the organisation’s internal and external environments. Once the organisation has determined the direction and goals it must pursue, it must set objectives and goals to meet those goals. These goals must be specific, measurable, and flexible, and should be able to evolve as conditions change. The strategic management process is an ongoing process, and managers must remain accountable for meeting commitments and adjusting their plans as the circumstances require.
Strategy implementation is the third step in the strategic management process. In this stage, the formulated strategy is put into action. As part of the strategic management process, management processes focus on the methods and procedures used to implement the strategy. In addition, they also assess the results of the strategy implementation. These activities are similar to situational analyses, which examine the context of the company and determine if any adjustments are needed. If they are not, the strategy will need to be modified or amended.