Strategic Management is perhaps most crucial to organizational planning and direction. It gives long-term focus to the organization and ensures the achievement of goals within the stipulated time period.
The onus of strategic management usually lies with the top bosses in the organization. They may delegate certain tasks of strategic management, but the core planning and monitoring remain in their purview. Usually, they prefer to delegate to experienced employees only or novices who at least hold strategic management certificate.
Strategic management comprises the following components:
The American entrepreneur and life coach Tony Robbins says, “Setting goals is the first step in turning invisible to visible.” How well-said! Unless the organization knows what it wants to achieve, there is no point in planning ahead. This component is all about setting short-term as well as long-term goals. These goals should be SMART – Specific, Measurable, Attainable, Relevant and Timely.
The next component of strategic management pertains to collecting information about all those internal and external factors that could influence the implementation and hence, the achievement of goals. For example,
- Are there enough resources in terms of finances and manpower to execute a process?
- Are there any laws or regulations to be taken care?
- What are competitors doing in the same space?
- What are the problems and opportunities that may arise in the future?
Once the goals and research are in place, now is the time to formulate a strategy. It determines what actions need to be taken to accomplish the goals. This is the most elaborate component of strategic management because how well the strategy is formulated will ensure the success of it. It also involves the allocation of resources at each phase of implementation. For instance, phase one will require 20 employees and an investment of Rs5 lakhs, and then phase two will require 15 employees and an investment of Rs2 lakhs.
Well, you have the strategy ready in the written format. The next component is to execute it seamlessly. This is the practical and most rigorous part of strategic management. Whatever you have planned is converted into actual activities and actions geared towards the delivery of goals.
A strategy on paper may look perfect and doable. But, implementation can prove otherwise. There can be certain loopholes or deviations from the original planning which may render the strategy futile. In order to ensure that this doesn’t happen, the implementation has to monitor and evaluated at regular intervals. If there are any issues, they should be plugged immediately.
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