Whether done formally or informally, every organization needs to plan what is it going to achieve and how is it going to achieve. These plans then need to be implemented in order to achieve those goals. Strategic management is the process whereby an organization develops and implements plans that espouse the goals and objectives of that organization. The process of strategic management is a continuous one that changes as the organizational goals and objectives evolve. A strategic plan is a document used to communicate the organizations goals, the actions needed to achieve those goals and all of the other critical elements developed during the planning exercise.
Strategic management process entails following key step:
Environmental Scanning: Environmental scanning refers to a process of collecting, analyzing and synthesizing the information for developing the strategy. The information can be divided into two main categories: information that is internal to the organization and includes capabilities, infrastructure, know-how, processes and other resources that are used for developing products and services to satisfy customer needs; and information pertaining to the external environment in which the organization operates. This includes general conditions, competitions, markets, customers etc. Both internal and external factors influence an organization and these factors evolve continuously. For this reason, environmental analysis needs to be done on a continuous basis and take the outcomes of the analysis as input for strategy formulation/refinement.
Strategy Formulation: Strategy formulation is the process of deciding best course of action for accomplishing organizational objectives and goal. The strategy needs to be developed in the context of business environment (both internal and external) and needs to be refined /changed based on changes in business environment.
Strategy Implementation: Strategy implementation implies that chosen strategy needs to be translated in actions for achieving strategic objectives and organizational goals. Strategy implementation includes designing the organization’s structure & culture, improving relevant process, developing human resources with relevant skill sets and allocating resources for the actions. An organizational control system is also required. This control system equips managers with motivational incentives for employees, as well as feedback on employees and organizational performance. Organizational culture refers to the specialized collection of values, attitudes, norms and beliefs shared by organizational members and groups.
Strategy Evaluation: Finally, organization needs to be evaluate its performance to ascertain whether the strategy is working and strategic goals are achieved. This includes measuring performance against strategic objectives and performance goals, and taking remedial / corrective actions. Strategy is a hypothesis and is based on certain assumptions; hence it is important that all assumptions and hypotheses are evaluated for their validity. Outcome of these analyses provide input to the strategy for refinement, making it a closed-loop system.
Based on our work with dozens of organizations, we have developed an 11-steps process to successfully deploy Strategy Management Framework. In our framework, we have also included implementation of an online Performance Management Solution to track organizations’ performance against targets & objectives and a Review Architecture to review performance at all levels in organizations.
Our methodology ensures that Strategy Management becomes part of the DNA of the organization; and expertise and know-how is imbibed within the organization so that changed way of working becomes daily routine.
For further information on our unique methodology, please download our Brochure. Download Brochure