Strategic management of a company requires establishing a framework to ensure the success of the entire company. This includes planning and ensuring that the strategies are followed and monitored, and encouraging employees to prioritize tasks that are in line with strategic goals. This involves identifying and analyzing the potential, risks and problems. This type of management can be performed by the upper management, however, the most innovative concepts can be derived from any employee. Companies use both descriptive and prescriptive strategies of strategic management based on renowned managerial theories and practices to help them make decisions, allocate resources and achieve www.boardroomtheir.com/what-is-strategic-management/ goals.
The first step in managing strategically is assessing the current situation of the company. This involves assessing the organization’s internal structure resources, capabilities, and structure as well as evaluating any strategic plans. Companies can also use tools like SWOT analysis to discover strengths, weaknesses, opportunities and threats in the market.
After the initial review the company should develop an objective statement or update it to reflect the overall strategic goals of the organization. These goals could be anything from increasing revenue to cutting costs. Typically they will have some sort of measurable goal that is achievable over time.
The strategy’s development isn’t enough to ensure it’s effective, though. The final stage in strategic management is to implement the plan, which requires excellent communication and coordination between departments and levels of management. It is crucial to choose and use a framework for strategy management that includes the Balanced scorecard, Theory of Change (TOC) or Objectives and Key Results (OKR) to help to manage and organize the different aspects of the strategic plan.