How to Determine the Company's Strategic Management Process
In an organization, the strategic management carried out by each division is different. It is also designed with the standardization of certain components within the company. Standardization in the strategic management process involves elements of finance, forecasting, and external factors.
The strategic management process can increase the effectiveness of a manager or leader in the organization. In addition, this will also help achieve a clear goal to be achieved by the company. If done correctly, of course the results will also be in line with the wishes.
Definition of Strategic Management
Strategic management is an organizational evaluation based on customer and competitor satisfaction to achieve best management practices. This will help the company to achieve better long-term strategic goals.
The strategic management process will usually involve managing clear objectives, with planning and business activities aligned with the achievement of the objectives. This will allow the organization or a group to get the following benefits.
- Identify strengths and weaknesses
- Determine the direction or strategic goals of the company
- Simplify complex situations with the right strategy
- Improve the right performance to achieve a goal
- Increase employee productivity
- Recognizing environmental changes in the presence of external threats
- Sustainable competitive advantage
- Competitive long-term survival
How to Determine the Company's Strategic Management Process
Determination of the strategic management of a company must also be carried out effectively. This is related to the implementation of good managerial strategic planning. In order to create a good managerial process, here's how.
1. Set a Clear Vision
Before creating a strategy or organizational goals, you need to clarify the vision that the company or organization wants to achieve. It consists of three important stages as follows.
- Identify short term and long term goals
- Determination of processes to achieve goals
- Adapting processes aimed at employees
Determination of the vision must be done consistently to be able to maintain the achievement of goals can be realized as expected. In addition, you also need to communicate the objectives to be achieved to all stakeholders involved in the company's operations.
2. Information Collection and Analysis
To realize the vision that is in line with expectations, you must also obtain as much information as possible regarding current conditions in order to be able to plan. This needs to be identified according to the company's focus and needs in order to survive in various situations.
After gathering the required information, conduct an analysis related to strategies and initiatives that can help the company to continue to grow. This will greatly depend on every internal and external factor so that it has an impact on the ability to achieve company goals.
3. Designing Strategy
When creating a plan, you should review the information from the analysis phase first. After that, identify the resources available within the organization in order to achieve the goals. If needed, find out if there is a possible need for external resources.
After identifying these things, you can develop strategies and make alternative approaches. This of course must be made based on the possibility of changing economic and business situations that continue to develop.
4. Executing Strategy
With the strategies and alternatives that have emerged from the managerial process, you can carry out the planned process. In addition to knowing the ideas related to managerial actions, you also have to secure cost and resource planning in order to execute the strategy well.
5. Strategy Evaluation and Control
Even though you have determined a clear strategy, you still need to have benchmarks related to the success of the program and strategy. You need to make sure the performance factor is realized properly. After that, compare the actual results with the strategy you have planned.
Performance factors that are considered must also reach the internal and external scope. If there are things that have not been realized properly, take corrective actions so that the goals can still be achieved. If it is successful, you can certainly maintain the strategy for the next period.
In carrying out the company's strategy, Prasmul Eli also understands the importance of identifying events, trends, and strengths of a business. This idea was designed in the Strategic Business Analysis program to help business executives survive in a chaotic situation so that the company can continue to grow.