The strategic management process can be considered as more than a few rules the company has to follow. It takes on a philosophical approach wherein the upper management would need to devise strategies and then communicate them to the lower levels for implementation. Accordingly, the process can be explained in five stages that are pertinent to the success of the business.
This would mean setting a clear vision for the business. It would encompass the phases of defining long/short term objectives, identifying the various processes needed to accomplish the objectives, and customizing the process for the employees. While the set goals need to be realistic and in par with the company’s vision, a written mission statement would effectively communicate the employees as well as the shareholders.
Analysis of information
This is a very important stage as it would pave the way for the next two stages. This stage pertains to collecting as much information and data related to accomplishing the company’s vision as possible. Focus must be placed on the business’s sustainability quotient, its strategic direction and the initiatives that would help the business grow. Internal and external issues that could potentially affect the visions would need to be examined and taken care of. The strengths and weaknesses of the organization would also need to be analyzed along with any potential threats or opportunities.
Formulation of strategy
Upon successful completion of the analysis, a strategy would need to be formed based on the information collected from the previous stage. This strategy would need to take into consideration the available resources for the business as well as potential areas where external resources can be availed as well. Potential threats and issues would need to be given top priority while formulating the strategy. When devising the strategy, it would be wise to develop alternate plans at every step.
Being the action stage of the entire strategic management process, the strategy implementation stage needs to be given a lot of thought. Funding for the business should be harnessed at this stage. Individual duties and responsibilities would need to be handed to the employees along with information of how they would work towards a common goal. With the funds secure and the employees ready, the plan can be implemented.
Control and evaluation
This stage deals with measuring performances, getting feedback about internal/external issues and then making corrective actions wherever necessary. The parameters based on which the strategy is to be evaluated would need to be the same as that explained in the first stage. If the strategic plan has not proved to be useful, then corrective actions would need to be taken. If these actions fail as well, they would need to be taken as information for future strategies.
A business would be able to succeed based on the efficiency of its strategic management process. This process can be divided into the stages mentioned above. Businesses would need to pass through all these stages successfully in order to taste success themselves.