Importance of Strategic Management
In order to align an organization’s operations with its vision and mission it is necessary to apply strategic management principles. Strategic management involves the evaluation of business objectives and goals in an effort to facilitate efficiency and effectiveness in an organisation. In strategic management, an organization’s long-term and short-term goals are designed. This is not a one-time thing since the strategies that an organisation apply have to be revised constantly. These revisions must be done with the understanding that the organisation is not an island and it has to conform to the external environment depending on the field they are working in.
Strategic management is the responsibility of those in high managerial positions. The executive of an organisation is normally tasked with this important responsibility. The people who handle the strategic management of a given company are the oes who steer the company towards the right direction. If they make a mistake in their judgement, the whole company or organisation sinks with them. Of course the board of directors are presented with the strategic plan developed by the executives so that they can share with the company’s stakeholders.
Strategic management is important and necessary in any given organization because it defines the scope of the activities they can be involved in. It is costly and time wasting to simply come up with activities blindly and hope that they will achieve the greater aim. All successful activities are normally planned and the expected outcome is usually already estimated through research.
There are three major questions that guide executives when they are carrying out strategic management including:
What do we do?
This answer to this question identifies the organisation in terms of its goals and objectives. These factors need to be well defined and recorded down. This is because whoever else comes to work for a given organization will find a structured plan to follow. When your personnel are losing direction in executing their duties, you can refer to this.
How do we do it?
Every organisation has their own signature style of doing things. For example every media house has a house style that every employee had to adopt. This is your signature mark that separates you from the rest of the people who are in a similar line of business.
How do we win?
Here we consider other activities that have been done in the past by our organisation and others in the field. We consider what others are doing right to stay afloat and we try to find strategies to up our game. In the process we also monitor our mistakes and brainstorm on possible corrective measures to apply.
People who are mandated with the responsibility of strategic management have to be always informed. For example, they will need to conduct regular and smart customer care research. This is the only what they can understand their markets and work smart to expand their market share.
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