Strategic management of a company involves creating an environment for the company’s success. This involves planning as well as ensuring that strategies are implemented and monitored, and assisting employees to prioritize tasks that are in line with strategic goals. This involves identifying and analyzing opportunities, risks and challenges. This type of management can be carried out by top management, however, innovative concepts can be derived from any employee. Companies employ descriptive as well as prescriptive strategies of strategic management based on renowned managerial theories and methods to assist them in making decisions that allocate resources and reach goals.
The first step in strategic management is to evaluate the current state of the company. This includes evaluating the company’s internal structure, capabilities and resources, as well as evaluating any strategic plans. Companies can also make use of tools like SWOT analysis to identify the strengths as well as weaknesses and opportunities in the market.
After the initial assessment is completed, companies must prepare or update the vision statement and strategic goals for the future of the business. This could range from increasing revenue to cutting costs. These goals usually have a target that is measurable and is achievable over time.
But formulating the strategy on its own will not be enough to ensure its success. Implementing the plan is the final phase of strategic management. This requires excellent communication and coordination between departments and levels. Making a decision and implementing a management framework like http://www.boardroomtheir.com/pros-and-cons-of-board-software-for-nonprofits the Balanced Scorecard, Theory of Change or Objectives and Key Results (OKR) is crucial to organizing and managing the different aspects of the strategic plan.