Strategic Management Process is defined as the method through which an organization defines its strategy. It is a continuous process in which the business or organization decides to implement a selected few strategies, specifics the implementation plan and keeps on appraising the progress and success of implementation through consistent assessment.
The strategic management process has five stage as shown in the figure below.
The vision and goals of the any organization are clearly specified. The short-term and long-term goals are defined, processes to accomplish the objectives are identified and current staff is evaluated to select capable people to work on the processes.
Data relevant to achieve the goals of the organization is collected, potential internal and external factors that can disturb the sustainable growth of the organization are observed and SWOT analysis is also performed.
When the analysis is done, the organization moves to the Strategy Formulation step where the plan to acquire the essential resources is designed, prioritization of the issues facing the business is done and lastly the strategy is formulated accordingly.
Afterwards formulation of the strategy, the employees of the business or organization are clearly made aware of their roles and responsibilities. It is confirmed that funds would be available all the time. Then the implementation initiates.
In this process, the strategies being implemented are assessed regularly to check whether they are on track and are providing the desired outcomes. In case of deviations, the corrective actions are taken.
As shown in the above figure, the 5 stages are not stand-alone and always interact with each other in order to ensure better management of the organization.
March 09, 2018