Friday, April 10, 2015

Strategic Management: How to Do it Right

Strategic Management is the groundwork for a company’s vision.

A strategy delineates a territory in which a company seeks to be competitively positioned to derive economic profits. The strategy is the art of designing a way of navigating and effectively utilizing available resources to attain a clearly defined objective. Strategy management, how to do it right?

Collective wisdom and experiences count: To do strategic management right, businesses traditionally turn to the individual and collective experience to provide guidance and direction. Because any individual’s experience is limited and incomplete, it is inevitable that the best strategies will be the result of a collaboration that includes the relevant experiences of a diversified group bringing knowledge from multiple areas. In today's world, business leaders need to have regular access to a group of peers, with whom they do not compete, and with whom they can brainstorm strategic issues. The value of this type of advisory group in virtually incalculable.

Strategic Management is the groundwork for a company’s vision. A strategy is a vision in which a mission is going to be accomplished. To birth the vision, the problem or purpose must first be defined. This definition can then be built upon through a plan of action, then the action must be assigned and carried out. The strategy should be shared by the entire team. By employing and extracting talent, an organization will be able to achieve anything. The strategy does not stop there, it also must have to follow up to ensure that the plan is driving toward the vision. If not then adjustments should be made. The strategy may not always stay the same as the vision can sometimes change depending on how results are viewed. Strategic Management is the groundwork for a company’s vision and allows a company to be ready to capitalize on opportunities. Strategic Management is very often overlooked and should be the first step in defining a company's core values, mission, and product focus; it is fundamental to creating and running a business. Simply put, it’s a game plan that sets specific goals and objectives but like a game plan, it is capable of being changed in response to shifting market dynamics.

Business strategy creates a clear line of sight between the enterprise and each role’s goals and objectives. There's a crystallizing thought about strategy. The strategy is not a thing or even a state, but a process of lining up the culture that people create to get something done, with the business model they create to get it done. Strategy, in all its forms, depends on team culture and business model alignment, leveraging resources, and capabilities in a collaborative way are the key as the world gets more and more complex. Successful execution of strategies also requires the right people with the right skills within the organization regardless of defined role, this includes both stakeholders involved in the planning process and those accountable for meeting goals and objectives.

Strategy, if done in the holistic, or systems oriented way, is usually a disruptive process.
(which is, arguably, the whole point if innovation is the objective). The proper timing of that disruption can make the whole ball game. Also, strategies don't just require the right tools, the tools are the last piece. In fact, the strategy itself is the last piece prior to execution. The problem is that many organizations do not set the right conditions for the strategy to occur within, something along the lines of the right people with the right mindset in the right roles doing the right work with the right interdependence. The key is to have a robust action plan and ensure that this is properly tracked and updated to account for changes in both the macro and micro environments. Communication of strategy is another vital ingredient, communication, in general, is a key for any organization to executive strategy successfully.

In summary: Strategic Management is a process of evaluating a company’s mission, establishing the company’s design, developing the company’s organizational relationships, whilst guiding the company’s plan to execution, to ensure that the management is consistent with the company’s strategy. Strategic Management also enhances and protects the company’s interests, be that financial, reputational etc and defines the way a company wants to expand or where it would really like to focus.


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