The Basics of Company Strategic Management

No matter what industry, strategic management is a method for the creation and management of business goals. It helps companies evaluate areas for improvement in operations and devise strategies to achieve their desired results. The approach can be prescriptive, in which specific processes are laid out to develop goals and implement them or descriptive, where general guidelines are laid out.

The first step in company strategic management is to establish the business goals. This requires analyzing the internal and external factors which could affect the operation of the company and establishing goals to guide the company’s decisions. Typically, the goals are communicated across the entire organization and can be carried out by every department.

Once the business goals are established, annual goals for the initial year should be formulated to ensure they align with the overall strategic objectives. These yearly goals must be broken into KPIs and important outcomes that are measurable and actionable. They can also be linked to overall strategic goals.

The next step is to monitor and evaluate. During this phase the company will assess its progress toward realizing its business goals and determine if any adjustments need to be implemented to the strategic management process. This could involve modifying the business model, eliminating ineffective strategies and monitoring the external environment as well as internal processes for any possible changes. This process can also aid in the development of efficient strategies to board room their address competition threats and market opportunities. It can also aid in improving communication between team members and creating strategies to overcome obstacles that might hinder the strategic goals.