Nowadays, it is very important for companies to plan processes and procedures and work accordingly. They necessarily need a step-by-step management process which would make corporate goals and ambitions easy to achieve. The strategic management process is an efficacious tool that helps companies carry out their processes in a smooth manner.
What is Strategic Management?
Strategic management is a particular course of action that is meant to achieve a corporate goal. It is really significant in defining and setting up the organization's mission, goals and procedures. Generally, the owners and the founders of the company take the first step in creating a strategic management process. This process is responsible for carrying out several functions such as providing direction and guidance to the employees, setting up mensurable goals and a time span to achieve them, and designating duties to all corporate personnel. Marketing and sales projections are the most important elements in a conventional strategic plan which also includes the steps to assess the accomplishments of every department.
Mission of the Strategic Management Plan
Every company has a mission statement which is the primary reason for running the business. The mission statement should mainly concentrate on the ambitions and purposes of the organization. Defining the mission statement is the first step for initializing a strategic management process, and all other work procedures are a part of devising a strategic plan. The organizational goals need to be set up after the mission is determined. The goals include fiscal anticipations which strongly emphasize on sales growth, profit levels, customer retention and attraction, and expenditure factors. The goals set up in the strategic planning process are required to be measurable and achievable, and effective schedules should be put into practice to review every aspect of the goals.
Strategic Management Plan Assessment
After the realizable goals have been properly set, the strategic management planning team needs to carry out the information-collecting tasks. A successful strategic plan is executed when employees, advisors, and freelancers contribute to every phase of the planning procedure. Sales and marketing practices provide data regarding the present scenarios in which the organization is operating. The Human Resource Management (HRM) department is responsible for providing data on aspects such as employee retention, health care expenses, and employee performance assessments. Freelancers are assigned the responsibility of studying market research and surveys and competitive intelligence to give a clear idea of the present business situations. After all the information and data is sorted out, the strategic management team then evaluates the reports and relegates the organization's strengths and weaknesses to formulate a final strategic plan.
The Strategic Plan
Plans need to be devised and implemented once all the data is readily available. The advertising and marketing processes can now be put into practice. Cutbacks and cost-cutting measures may be executed to maintain and increase the profit levels according to the organizational goals. At this point of time, the company management may also take the decision of introducing new products and services in the market. All factors that increase the profitability of the company should be thought upon by the management, and the strategic leadership should be planned according to different strategies. The managers are required to be given time lines for deliverables, level of expectations, budget parameters, and certain obligations.
Review of the Strategic Management Plan
Efficient strategic thinking and a strategic management plan will always have controls and periodic reviews incorporated into the process. Each stage should be elaborated and then the changes should be made accordingly. The management team needs to keep a detailed record of the allotted deadlines, and the required particulars should be presented to the clients or stakeholders. The strategic planning team is required to review the integral strategic management process annually. Business situations, market projections, and technological furtherances demand present and regularly updated strategic planning to enable an organization to be successful in today's highly competitive environment.
The periodic incorporation of the strategic management process is crucial for the smooth running of the company. As a result, companies are giving more importance to the strategic management process implementation.
By Stephen Rampur