Much is said about the importance of Strategic Management for business success, but little is actually explained about what Strategic Management truly is and what its characteristics are, which can make it a very abstract concept.
Understanding the concept in depth is crucial for putting it into practice effectively, as Strategic Management, when applied, enables the identification of opportunities and threats, optimizes resource utilization, ensures informed decision-making, among many other advantages.
What Is Strategic Management, After All?
In a business context, strategy refers to the set of plans and actions developed to achieve one or more long-term goals defined by a company. Management, on the other hand, is the act or process of overseeing, administering, or directing.
Therefore, Strategic Management involves managing a series of actions such as long-term planning, environmental analysis, strategy formulation, implementation of defined actions, and progress monitoring.
Its main goal is to ensure the company’s success and sustainability, as outlined during the Strategic Planning process. To achieve this, it must also guide the company’s positioning and decision-making, as well as monitor and suggest the necessary changes to maintain competitiveness.
In practice, Strategic Management guides the direction of Operational Management, which is responsible for the daily and routine tasks that move the company closer to the results envisioned and planned at the strategic level.
Process Stages
Like everything within an organization, Strategic Management must also become a process in order to be effectively executed and deliver the desired results.
Its main stages are:
– Analyses: such as SWOT Analysis and External Environment Analysis to consider the competitive landscape, market, and economy.
– Objective Setting: to establish clear and measurable goals; otherwise, management becomes abstract, based solely on theory without evidence of real results.
– Strategy Creation: this is when action plans are developed, detailing what will be done on a day-to-day basis to achieve the defined objectives.
– Implementation: the stage where planning is taken off the paper and the planned actions are put into practice across all involved areas.
– Monitoring and Evaluation: because everything implemented needs to be monitored and assessed, making adjustments whenever necessary.
Strategic Management vs. Strategic Planning
It is very common to confuse these two terms, especially in a world where everything has become “strategic.”
Strategic Management and Strategic Planning go hand in hand; however, Strategic Management serves as an essential link between actions at the operational and tactical levels and the company’s overall strategy.
Strategic Planning aims to guide management regarding the direction to be followed in the long term.
In practice, Strategic Management puts into action everything that has been aligned and defined in the Planning process.
Strategic Planning = Thinking
Strategic Management = Acting
Advantages
Strategic Management offers numerous benefits when effectively applied in organizations, with the main ones being:
- Organizational alignment
- Competitive advantage
- Informed decision-making
- Sustainability and growth
Technology as an Ally
Applying Strategic Management efficiently and in alignment within an organization can be a challenging task, but it becomes simpler with the use of technology and software capable of meeting your company’s needs.
Interact offers a solution designed to overcome the daily challenges faced by professionals working directly with Strategic Management. With this solution, you can plan and manage organizational strategies, as well as their unfolding at the tactical and operational levels, benefiting from the advanced technology provided by Interact Suite SA.
The solution also enables integrated visualization of results through strategic maps, performance indicators, and action plans, delivering better performance, monitoring of all stages, and more satisfactory outcomes for your organization.
Visit our website to learn more about our solutions. Take your management to the next level!
