Strategic management for companies involves establishing an organization-wide framework for success. This includes the planning process monitoring and implementing strategies and encouraging employees to prioritize tasks that help achieve strategic goals. It also includes looking for opportunities and analyzing challenges and risks in the business environment. This type of management is usually performed by the top management, however creative ideas can come from employees at any level. Companies employ prescriptive and descriptive strategies for managing techniques based on well-known managerial theories to assist them in making decisions, allocate resources, and achieve their goals.
The first step in strategic management is to evaluate the present state of the company. This requires examining internal structure, resources and capabilities, as well as evaluating any existing strategic plans. Companies can also use tools like SWOT analysis to discover the strengths, weaknesses and opportunities in the market.
After the initial evaluation is completed, businesses should make or amend a vision statement http://www.boardroomtheir.com/how-to-improve-board-performance-for-your-nonprofit and broad strategic goals for the future of their organization. These goals could be anything from increasing revenue to cutting costs. Typically they will have an objective that is achievable over time.
But formulating the strategy on its own will not be enough to ensure its success. The final stage of strategic management is the execution of the plan, which requires a high level of coordination and communication across departments and management levels. Selecting and implementing a strategy management framework like the Balanced Scorecard, Theory of Change or Objectives and Key Results (OKR) is essential to organizing and managing the various aspects of the strategic plan.