4 Tips for Optimizing Your Strategic Management Process

Last updated on April 6th, 2024 at 02:00 am

In this article, we’ll learn about the Strategic Management Process. I hope this article will be helpful to you to do your work, learn and obtain whatever information you want about the Strategic Management Process.

Strategic Management Process is a method used in business organizations. This process is what decides what the organization’s goals are, and how to achieve them.

Strategic Management Process helps to determine the complete details of the operations to be carried out, procurement, finance and every other detail there is. Before we get to the rigid definition for Strategic Management Process, lets understand in brief about what ‘Strategy’ is.

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Strategy

Strategy can be said as the plan adopted by the business organization to accomplish their long term target/goals.

Alfred Chandler has defined Strategy as, “The determination of the basic long-term goals of an enterprise, and the adoption of courses of action and allocation of resources necessary for carrying out these goals.”

Strategy consists of 6 components. They are mentioned below :

• A strategy is future-oriented
• Strategy is Goal-oriented
• Strategy includes resource allocation
• Strategy has a long term focus
• Strategy has comprehensive long term action plan
• Strategy gives competitive advantage

There are 4 levels of strategy that are used :

• Corporate level strategy
• Business level strategy
• Functional level strategy
• Operational level strategy

Strategic Management Process

Moving onto the main focus of the article, The Strategic Management Process. 

There are a total of 4 steps in which the Strategic Management Process can be explained and summarized.

• Strategic Intent
• Strategy Formulation 
• Strategy implementation
• Evaluation

Establishment of Strategic Intent

Strategic Intent can be said as the base idea of the organization. This is the basis on which the organization operates and plans accordingly. Gary Hamel and C.K. Prahalad popularized the word ‘Strategic Intent’.

In the first phase of the Strategic Management Process, Strategic intent is established. Strategic Intent emphasizes on what the organization exists for and what it desires in future by establishing Vision, Mission, Goals, Objectives and plans of the organization.

Vision statement

A Vision statement of an organization expresses what they want to achieve in future as their ultimate goal. 

Mission Statement

A Mission statement expresses the reason for the existence of the organization. Basically it emphasis on the purpose of organizations existence i.e. what product or service do they provide to the society.

Objectives

Objectives are the short term and long term goals of the organization.

Plans

Planning is the process of organizing the operation accordingly to accomplish the target.

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Strategy Formulation

The Second phase of the Strategic Management Process is formulating a strategy to operate on. This strategy format phase includes all of the operations to be carried out in detail. It includes the procurement of resources, allocating and operating on them.

Several courses of action are evaluated to select the optimum course. While selecting the best course of action, the main and ultimate goal is considered thoroughly.

In summary you can say that, Strategy formulation is the process in which the top management selects the best course of action for organizational operations to achieve the organizational goals.

Strategy implementation

The Next, third step of the Strategic Management Process is Implementing the Strategy. Basically, this is the stage where plans turn into action. All the strategies made in the second phase are carried out in the third phase.

Karami defines Strategy implementation as the manner in which an organization should develop, utilize and amalgamate organizational structure, control systems and culture to follow strategies that lead to competitive advantage and better performance.

The working process of Strategy implementation is given in the figure below:

Strategy Evaluation

The fourth and final step of the Strategic Management Process is Evaluation. As much as you may have assumed, in this step, all the plans and work are evaluated.

The main reason for the evaluation is to make sure all the operations carried out have been according to the organizational goal, and if there are any errors due to plans, they can be modified.

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Final Words

I hope this article about Strategic Management Process was helpful and informative to you. If you have any queries, or you think there is something missing in the article, let me know in the comment box.

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