Strategic management is the process of managing, planning, and analyzing in order to reach all organizational goals. Strategic management helps an organization see where it currently stands, where it will be in the future staying on the current course, and where it would like to be in the future. Strategic management takes advantage of organizational resources to create a strategy that helps get closer to or reach their goals.[i]
If you look into the research on strategic management and planning, the results are shocking. According to studies:[ii]
- 95% of a typical workforce doesn’t understand its organization’s strategy
- 90% of organizations fail to execute their strategies successfully
- 86% of executive teams spend less than one hour per month discussing strategy
- 60% of organizations don’t link strategy to budget
Based on these statistics, we can conclude that organizations’ workforces are not aware of their organization’s overall strategy, if the strategies being utilized are unsuccessful, and if strategies are not being budgeted for. As an organization, planning and strategizing for the future is one of the most beneficial initiatives you can take.[iii]
The process of strategic management includes goal setting, analysis, strategy formation, strategy implementation, and strategy monitoring. Let’s take a look at how each of these steps ties into the overall strategic management process.
The first part of strategic management is to plan and set your goals. Set the short- and long-term goals of the organization and make sure that these are shared with all members of the organization. Explain and share how each member of the team will have an impact on the organization reaching this goal. This will help give each member of the team a sense of purpose and will give their job meaning.
During this stage of the process, it is important to gather as much information and data as possible. This information will be integral to creating your strategy to reach your goals. This step of strategic management entails becoming aware of any issues within the organization and understand all of the needs of the organization.
In this strategic management step, you will use all the intelligence and data you have gathered to formulate the strategy that you will use to reach whatever goal you set. Identify useful resources you have, and also seek out other resources you will need to set up your strategy.
This is arguably the most important part of the entire strategic management process. At this point, each member of the team should have a clear understanding of the plan and should know how they play a part within it. This is the stage where your strategy is put into action.
During this stage, your strategy will already be in play. At this point, you should be managing, evaluating, and monitoring each part of your strategy, and ensuring that it aligns with the end goal. If it does not, this is the time where you would make tweaks and adjustments to strengthen the overall plan. This is the stage where you will track progress and have the opportunity to deal with any unexpected shifts in the strategy.
Planning for the future of your business is an integral piece of operating a successful organization. Strategic management is a great first step, so be sure to visit our page to see how we can help your company.