Strategic Management - Meaning and Important Concepts Strategic Management - Meaning and Important Concepts Strategic Management - An Introduction Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions.
Strategic Thinking is a more comprehensive planning model that covers innovation, strategic planning and operational planning. Too many organizations try to be everything to everyone, wasting resources in markets that may never provide a worthwhile return on investment.
What is Strategic Thinking? Strategic Thinking is a planning process that applies innovationstrategic planning and operational planning to develop business strategies that have a greater chance for success.
More and more organizations are learning that past experience is not always the best basis for developing future strategies. Executives need to thoughtfully consider how to create value for customers. It is a process of examining everything we do in our various roles, understanding the needs of our customers and ensuring that all of this is linked to clearly defined strategic imperatives.
If we compare strategic thinking with strategic planning and operational planning we see that: Operational Planning — is the specific details of the how and when. Why is Strategic Thinking Important? The purpose of Strategic Thinking is to create a strategy that is a coherent, unifying, integrative framework for decisions especially about direction of the business and resource utilization.
To do it, Strategic Thinking uses internal and external data, qualitative synthesis of opinions and perceptions.
It is conscious, explicit, and proactive and defines competitive domain for corporate strategic advantage. Strategy is a key outcome of a relevant strategic thinking process. The process begins with Innovation. We try to create the ideal future and consider the plans needed to achieve them and to see them through.
Innovation helps us to move outside our comfort zone into the possibilities of exceeding customer and organizational requirements and expectations. Innovations are then articulated into a series of strategies. This is a part of the entire Strategic Planning process.
However, in Strategic Thinking, we incorporate the needs of our customers, the organization and our staff in the process. We incorporate Benchmarking to ensure that industry best practices are included in our vision of the future.
Employee Involvement at each stage of the Strategic Thinking process is key to ensuring that they stay involved in the execution of the Operational plans. This is where Operational Planning comes to play. It is the process of taking the strategies the outcomes of the Strategic Planning process and developing them into action plans that are achievable and involve staff throughout the organization in ensuring that the needs of the customer and the organization are met.
The last part of Strategic Thinking is Measurement. There must be an on-going process of measuring the effectiveness of the plans and verifying that they are implemented as planned.
Measurement is also used to benchmark the original needs against the implemented actions. To successfully implement strategic change, initiated through the strategic thinking process, it is important for all levels of employees to fully incorporate the change in everything they do.
We do this by identifying and establishing Values and Principles to ensure the organization is successful at achieving its strategic goals.
Conclusion Senior managers and leaders in organizations have a responsibility to make the required time to undertake Strategic Thinking in their business planning. Without comprehensive Strategic Thinking the organization risks making quick decisions that lack the creativity and insights derived through a Strategic Thinking process.
This is not something that can be delegated away. Strategic Thinking can be done for the organization as a whole and for each department or division within the organization.
The goal is to out-think, out-plan and out-maneuver other forces or competitors. Similarly, the role of the leader embodying the essential elements of Strategic Thinking is well described in this passage: Seeing what others do not see is called brilliance, knowing what others do not know is called genius.
Brilliant geniuses win first, meaning that they defend in such a way as to be unassailable and attack in such a way as to be irresistible.
He works with leaders and their teams around the world to improve organizational performance by helping them to define their strategic direction, increase leadership performance, create cultures that drive innovation and improve project and quality management.
He also delivers presentations to businesses and conferences throughout the world. In addition to his consulting practice and global speaking he has been featured and published in over different magazines and industry publications.Get step-by-step guidance and materials to draft a sample Strategic Plan that is relevant, realistic and flexible -- while you earn a Certificate in Facilitating Strategic Planning in a self-paced, highly practical and online program.
Individual feedback is shared about your sample Plan. Traditionally, Strategic Planning omits the step of innovative thinking that is so critical to business success. Strategic Thinking is a more comprehensive planning model that covers innovation, strategic planning and operational planning.
MANAGING PUBLIC. SECTOR RECORDS A Training Programme Strategic Planning for. Records and. Archives Services INTERNATIONAL. COUNCIL ON ARCHIVES.
Planning is one of the executive functions of the brain, encompassing the neurological processes involved in the formulation, evaluation and selection of a sequence of thoughts and actions to achieve a desired goal.
Various studies utilizing a combination of neuropsychological, neuropharmacological and functional neuroimaging approaches .
True Sky corporate performance management software that simplifies the budgeting and forecasting process for companies using Excel. Call today: The Art of Scenarios and Strategic Planning: Tools and Pitfalls MICHEL GODET ABSTRACT The term strategy has been misused and even abused.
Worse, the word scenario is often confused with strategy to the point that clariﬁcation is needed if we are to understand one another.