Strategic management qua management model takes into account the management of the total of an organization’s resources to achieve objectives and goals. It is a method of management that incorporates the interests of all stakeholders by drawing up strategic plans that involve all areas of the organization.
Therefore, strategic management integrates the analysis of the environment, the definition of objectives, the identification of strategic alternatives, decision-making, and the monitoring of the results achieved by the strategies implemented.
We have addressed the theme of strategic management on two occasions.
In the first article, “From Bureaucratic Management to Strategic Management,” we saw that strategic management is a management model that aims to keep the organization in dynamic equilibrium with its environment. This means that the organization must monitor and, when possible, anticipate environmental changes to adapt quickly.
In the second article, “Developing Strategic Management in the Company,” we dove a little deeper into the subject, detailing the process and dynamics of strategic management.
In today’s Management Tips we will return to the topic of strategic management to try to understand it from the three fundamental perspectives illustrated in Figure 1: The Strategic Position, Strategic Choices, and Strategy in Action.
The Strategic Position perspective allows us to identify the impact of the external environment, strategic capacity (resources and competencies), and expectations of stakeholders in our organizational strategy. The analysis of the external environment involves understanding the complex world around us in its political, economic, sociocultural, demographic, technological, physical and competitive dimensions. Strategic capacity allows us to assess strengths and weaknesses. Expectations of stakeholders reveal what the various actors who interact with the organization expect and perceive of their performance.
Strategic Choices as a perspective makes it possible to identify strategic alternatives, the methods we have at our disposal to choose among them, and the decision-making process leading to selection (and realization).
Finally, the perspective Strategy in Action ensures that the strategic alternatives chosen are actually applied. It includes organizational structuring to support superior performance, managing strategy implementation processes, and managing the change process, which includes understanding how our organizational context influences change and the various roles involved in the change process.
Does that make sense?
Until the next issue of Management Tips!