Strategic management is an analysis process related to important issues within the organization. Carrying out this analysis process is within the scope of the duties of the senior managers of the organization, which is done on behalf of the main manager. The purpose of this action is to control resources outside the organization. This process includes things such as determining the mission, vision of the organization, assets of the organization, planning and related policies. All these cases under the banner of strategic management direct the activities of the organization towards the main goal.
By relying on strategic management, we can address long-term goals, implement goals and plans, evaluate and control existing strategies. Based on this, it will be possible to evaluate and identify external opportunities and threats according to internal strengths and weaknesses.
The Difference between Strategic Management and Strategic Planning
At the beginning of the matter, these two concepts can be considered aligned and consistent with each other. But with more precision, we find out that strategic management is a broader concept that includes strategic planning. In other words, strategic planning is a process whose ultimate goal is to achieve the organization’s embedded strategies. This is while the goal of strategic management is strategic planning; That is, it includes things such as planning, execution, supervision of execution, control, etc.
Strategic management gives direction to the activities and performance of the organization and employees, but strategic planning is done once and during a specific period. Therefore, the process of cross-sectional planning and the process of continuous management.
The Importance of Strategic Management
Considering the capabilities and facilities that this management provides to organizations, failure to use it in a competitive and changing business environment will cause Karma to face the risk of failure. If we want to grow and excel in such an environment, we must be able to design and implement the best plan by predicting the future conditions. Strategic management with accurate goals and analysis of the organization’s current position and existing competitive conditions can guarantee our success. Other reasons for the importance of strategic management include the following:
1. Innovative Performance
By combining strategy and innovation, we can plan and try new ways to get out of crises. Our innovative strategies with creative business solutions provide a better and more pleasant experience for the customer. If we can use the combination of strategy and innovation in the best way when facing crises, we will be able to grow more.
2. Increase in Company Profits
The growth and profitability of their company is one of the logical reasons that managers initiate and implement various strategies. A good manager with strategic thinking should be able to predict financial profits and losses in the best way.
3. Gaining Sustainability
We will have successful strategic management when our strategic planning does not lead to stability and stability in our target market.
4. Accompanying the Evolution of Technology
Today, more and more businesses are moving towards digitization. The design of digital tools is done in order to improve the situation and efficiency of businesses as well as reduce costs. In this technology revolution, successful strategic managers should be able to use new technologies in their business plans.
Elements of Strategic Management
The basis of any action is proper goal setting. In relation to strategic management, managers should be able to identify the goals of the organization in addition to determining the goals of the desired strategies and adjust their strategies accordingly.
Ideal relations form the most important internal factor of the organization. Determining the strategy by managing and implementing plans is the responsibility of the employees of the organization. Therefore, having a strong and friendly relationship between management and employees is considered a requirement.
It builds trust in the body of relationships. Trust between managers and employees is one of the secrets of the organization’s success. The task of establishing a trust atmosphere within the organization is also the responsibility of the human resources management department. This trust should be two-way; It means that the employees as the executive members of the strategy should trust the strategic planning of their managers. Managers should be sure of the exact and flawless implementation of their plans by the executive team.
In order to achieve success and achieve the goals of the organization, senior managers must be responsible and accountable for different aspects of their planning. Only in this way can the organization achieve its developed strategies.
Up to Sum
Strategic management in the organization guarantees the set goals, the correct use of internal and external resources and the movement of the organization in the right direction. Also, relying on its capabilities, we can analyze market conditions and consider possibilities. Besides, by knowing the internal strengths and weaknesses of the organization, we can identify the opportunities and threats in the best way.