The strategic management of a company is the creation of a framework to ensure the success of the entire organization. This includes planning and ensuring that the strategies are implemented and monitored, and assisting employees to prioritize tasks that are in line with strategic goals. This involves identifying and analyzing potential opportunities, risks, and business challenges. This kind of management is usually performed by top management. However, innovative ideas can come from employees at any level. Companies employ http://www.boardroomtheir.com descriptive as well as prescriptive strategies of strategic management built on the most well-known theories of management and practices to help them make decisions to allocate resources and meet objectives.
The first step of strategic management is to evaluate the current situation of the company. This includes assessing the company’s internal structure resources, capabilities, and structure and also evaluating any strategic plans. Companies can also use tools like SWOT analysis to identify the strengths, weaknesses and opportunities in the market.
After the initial review the company should develop an objective statement or update it to reflect the broad strategic goals of the organization. They could range from increasing revenue to cutting costs. Typically, these goals will include the setting of some kind of target that can be achieved over time.
But formulating the strategy on its own does not guarantee its success. The final step in 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, such as the Balanced Scorecard, Theory of Change or Objectives and Key Results (OKR) is essential for organizing and managing the various aspects of the strategic plan.