What
is Strategic Management Process?
Strategic Management Process is an ongoing
process of five steps which defines the way an organization makes its strategy
to achieve its goals. Using the Strategic Management Process, an organization
decides to implement a selected few strategies along with stakeholders, details
the implementation plan, and keeps on appraising the progress & success of
implementation through regular assessment. The five stages of the strategic
management process are shown in the figure below.
Steps
in the Strategic Management Process
The process is not a one-time implementation but we
can think strategic management process as a loop which keeps on going to
achieve the objectives as per the need.
1. Goal
Setting: The
vision and goals of the organization are clearly stated. The short-term and
long-term goals are defined, processes to achieve the objectives are identified
and the current staff is evaluated to choose capable people to work on the
processes. This can be done through proper environmental scanning.
2.
Analysis: Data relevant to achieve the goals of the organization is gathered,
potential internal and external factors that can affect the sustainable growth
of the organization are examined and SWOT analysis is also performed.
3. Strategy
Formulation: Once
the analysis is done, the organization moves to the Strategy Formulation stage
where the plan to acquire the required resources is designed, prioritization of
the issues facing the business is done and finally, the strategy is formulated
accordingly.
4. Implementation:
After
formulation of the strategy, the employees of the organization are clearly made
aware of their roles and responsibilities. It is ensured that funds would be
available all the time. Then the implementation begins.
5.
Strategy Evaluation: In this process, the strategies being implemented are evaluated
regularly to check whether they are on track and are providing the desired
results. In case of deviations, corrective actions are taken.
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