5 Steps of Strategic Management Process

1. 5 Steps of Strategic Management Process ContouralInc

2. Strategic management process is the method used by organizations to achieve long-term goals and strategic objectives. This process incorporates development of the organization’s vision, identifying its organizational objectives, followed by devising and implementing the organization’s strategies. Strategic management process also includes devising and implementing corrective measures if the strategic goals seem to have drifted in some other direction. Strategic management process is a different branch of management, and should not be confused with strategic planning process. This article discussed the steps involved in Strategic management process. • There are five steps that must be followed in their chronological order.

3. Goal Setting • The most important step is the identification of goals and having a clear idea about organization’s vision. Once the goals are clearly identified, further steps are taken according to that. Clear vision about organizational goals includes short-term as well as long-term objectives. It is at this stage that the persons responsible for implementing each task are identified, which further help in the set goals.

4. Analysis • The second step ‘analysis’ involves gathering the data and information required for the accomplishment of the set goals. During this step, internal and external factors which influence business are analyzed, and business needs are also understood. The market is studied; internal and external data that may affect the organization’s goals is examined. Some of the influencing forces which must be taken nto account are: • The existing culture of the organization. • Market standing of the organization. • Leadership style. • The organization’s experience in creating and implementing SMPs. • Industry and competition.

5. Strategy Formulation • After assessing the whole market, and your business a workable strategy is devised for organizational development. Setting of realistic business goals is important because these goals can only be achieved if the required resources are available to reach the goals set in the first step. A strategy formulation will help achieve goals by identifying the external resources business needs to succeed. These goals must also be prioritized for effective implementation.

6. Strategy Implementation • Since the purpose of strategic management process is to steer an organization towards its objectives, therefore the planning must be implemented so that the changes can be propelled. For effective implementation, all stakeholders must be taken on-board. Everyone in the organization must understand the process; have a clear idea about their duties and responsibilities, so that organizational goals could be achieved.

7. Evaluation and Control • The process of strategic management does not end at implementation. The sustainability of change process has to be ensured. Therefore, evaluation and control actions are required for the strategic management process. This includes performance appraisal and continuous review of both internal and external issues. To ensure strategic management process’ success, the management of the organization can also take corrective actions.

8. Conclusion • The primary objective of strategic management process is to help the organization achieve a sustainable strategic competition in the market. When properly conceived and implemented, SMP creates value for the organization by analyzing opportunities and threats, leveraging strengths and weaknesses for the survival, growth and expansion of a business. Strategic Management Process helps achieve organizational goals by maximizing resources’ output. • At Contoural, our team of experts plays an important role in data placement strategy implementation by ensuring that the process follows all steps.

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