What is strategic management?
It should be all about implementing the corporate strategy.
After deciding the strategies, we move into the final stage of executing the strategic plan. Strategic management is monitoring results of implementing strategy. It also means taking action indicated by the results. This means reconnecting with ongoing management of the entity, as well as the new strategic projects.
With the strategies chosen and approved by the highest levels of the organization, the planning team has almost completed their task. They still have tasks to carry out - they must -
Monitoring is a vital part of strategic planning and is what leads to strategic management.
It permits the team to follow the progress of their strategies. It also provides a mechanism for alerting them when the strategies require revision. Monitoring also tells them when to restart the entire corporate planning process again. This should not be for several years. The organization continuously assesses the confidence in its current strategies, ready to spring into action on the planning process as required.
The monitoring stage is not just the final step in the corporate strategic planning process. It is also the first step to ‘strategic management’.
A team of executives continually act as corporate strategic planners. They constantly scan the environment for new trends and events. They keep thinking about the long-term future direction for their organization.
Many managers, academics, and business commentators would agree on these five key elements -
For a study of these elements see - What Is Strategic Management, Really? Inductive Derivation Of A Consensus Definition Of The Field, by Rajiv Nag, Donald C. Hambrick, and Ming-Jer Chen.
Strategic management consists of an integrated system. The organization systematically and monitors its operations. It also watches environmental trends. It responds to trends and events quickly — even, as may be required, while they are still emerging.
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Some resources on strategic management -
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