The 5 Stages of The Strategic Management Process

The 5 Stages of the Strategic Management Process

Strategic management

      Strategic management is the ongoing planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its goals and objectives. Changes in business environments will require organizations to constantly assess their strategies for success. The strategic management process helps organizations take stock of their present situation, chalk out strategies, deploy them, and analyze the effectiveness of the implemented management strategies. Strategic management strategies consist of five basic strategies and can differ in implementation depending on the surrounding environment. Strategic management applies both to on-premise and mobile platforms. (SearchCIO, 2019)

5 Steps in the Strategic Management Process

1. Goal setting

• ·         The purpose of goal-setting is to clarify the vision for your business
• ·         Define both short- and long-term objectives
• ·         Identify the process by which to accomplish your objective
• ·         Give each person a task with which he can succeed

            Set a long-term organization-wide strategic goal. This is the one goal all members of the organization should be able to reproduce and chant at any time. The goal has to be emotionally compelling but not just a daydream: it should be clear what success looks like.

2. Analysis - Internal and external

• ·         Gather information and data relevant to accomplishing your vision
• ·         Understand the needs of the business as a sustainable entity
• ·         Examine any external or internal issues that can affect your goals and objectives

When the initial goals making up the strategic framework is agreed upon, it’s time to assess your company’s capability to actually achieve the pursued goals. Conduct a quick SWOT analysis for all goals you’ve set to take into account internal and external factors.

3. Strategy Formulation - Effort and Impact (and KPIs)

• ·         Determine what resources the business currently has to reach the defined goals
• ·         Identify any areas for which the business must seek external resources
• ·         Goals should be prioritized by their importance to your success

4. Strategy Implementation - Goals and Tasks

• ·         Be clear about everyone’s responsibilities and duties, and how they fit in with the overall goal
• ·         Secure the resources needed to execute tasks

Every employee involved receives a set of responsibilities and tasks to be performed. Every single task is connected to a goal. And performing every task as planned should give you a decent shot at achieving the goal.

5. Evaluation and Control

• ·         Determine your progress by measuring the actual results versus the plan
• ·         If the strategy is not moving toward its goal, take corrective actions
• ·         Any data gained in this stage should be retained to help with any future strategies

                                                                                                            (Boardview, 2016)

References

Boardview. (2016). The Five Stages of the Strategic Management Process Boardview. [online] Available at: https://boardview.io/blog/five-stages-strategic-management-process/.

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Investopedia. (2019). Strategic Management. [online] Available at: https://www.investopedia.com/terms/s/strategic-management.asp.

SearchCIO. (2019). What is strategic management? - Definition from WhatIs.com. [online] Available at: https://searchcio.techtarget.com/definition/strategic-management.

Zigu (2011). Strategic Management Process Definition | Marketing Dictionary | MBA Skool-Study.Learn.Share. [online] MBA Skool-Study.Learn.Share. Available at: https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/7247-strategic-management-process.html.