Strategic Management Process – Improve Your Business by Evaluating Your Strategic Management Process
Every business could perform well by evaluating their strategic management process properly. It should not just plan alone, it should be managed effectively. Most of the companies limit their strategic thinking only by planning. Strategic planning is essential for every business, but it is only one part in the process.
Strategic Management Process
A good strategic management process will help your business to improve and to gain more profits. Every business should know that performance of the management process is very important. There is a big different between planning and performing. The company will be successful only if it follows all the stages of the strategic management process.
The strategic process can be explained in three stages, definition stages describes defined market strategy, translation stage deals with the business philosophy, building stage is the main goals of creating and designing perfect performance measurement, operating state is creating good environment for frequent development of the business. To cover all the stages perfectly in the business, the company has to think more and focus on the correcting every stage in the process. A number of companies will find this process is difficult for them. Some of the companies target more on the technical side than to look on the conceptual. Sometimes this is ok, but regarding with strategic management process, it is the wrong procedure. The effectiveness will come by implementing all the process. The improvements can also be done after the overall process in implemented.
To know the importance of all stages working, one has to consider the impact on the performance if any stage is missing. Two stages are often missed by many companies translation and the operating stage. Many companies developed good market strategy on the first stage, but they fail in the translation stage, which deals with business philosophy, they may miss something regarding with their suppliers, shareholders, customers, and employees. To be effective the market strategy should be understood and approved by stakeholders at the translation stage. The main goal of the operating stage is to create frequent improvement surroundings which develops the overall business strategy of the business and offers good feedbacks to the other stages of the strategic management process.
Some companies have performed frequent development program in their company. The business strategies will be effective only if it is refined and strengthened in the course of time by continuous checking and improvement of insights. This can be achieved in the operating stage. If all the stages of strategic management process are well placed in the business, even though it is imperfect, the company can accomplish its desired results and develop more in its business. To be effective, all the stages in the management process should be implemented and performed well by the company. The seven steps which are involved in the strategic management process are Review or develop Vision and Mission, Business and operation analysis, Develop and Select Strategic Options, Establish Strategic Objectives, Strategy Execution Plan, Establish Resource Allocation, and Execution Review.