Strategic management is a process that involves preparing and executing business plans that guide a company towards its goals. It may involve management activities that include setting goals and determining what steps are required to reach the goals. The process involves taking a look at strategies and making adjustments. A degree, work experience in management and leadership positions, and mentorship are all necessary qualifications to become a strategy manager.
The first step of the process of strategic management is goal-setting. In this phase, leaders define the company’s vision and the ethos. They also set operational goals. They then define and establish specific goals that are measurable, feasible, relevant and time-bound (SMART) objectives to help achieve these goals. The leadership team should review these goals and their accompanying KPIs annually to ensure that they’re still on track for the future.
In the next stage Strategic managers then analyze the impact of various factors on the development of an organization. This includes the competitive environment, economic trends and potential rewards and risks. They use this information to develop strategic options to aid a business in overcoming its obstacles and reach its goals.
Implementation is the third phase of strategic management. This is the actual implementation and execution of the chosen tactic. This requires great communication, coordination and resources to make sure the strategies are put in the right place across all departments and levels of the organization. It also includes assessing cross-functional business choices and ensuring they align with the strategic plan. It is important to regularly communicate to employees how their day-today work translates into meeting the goals established in the strategic plan and how these goals are related to company-wide objectives.