Most business owners want to make wise decisions, but they sometimes are at a loss of where to begin. This is where strategic management comes into play. An important concept for business owners and managers to grasp, strategic management entails evaluating business goals, objectives and plans in light of your company focus on effectiveness and efficiency. Strategic management is an oft-used and sometimes ill-understood concept in business. It helps to consider the two words separately first.
Strategies are the initiatives a company takes to maximize its resources and to grow its business. This might involve financial planning, human resources management or focusing on a mission statement. Management is the process of operating the business on a day-to-day basis and planning for future success. When you put the two words together, strategic management is about driving the company's growth through effective management techniques focused on goal-setting.
If for any reason, you have questions strategic management, either starting on this path, or choosing the right strategy to implement, please do not hesitate to give us a call and speak to someone, to have all your questions answered!
7 E.Bijou Street Suite 211
Colorado Springs CO
United States of America
Your vision for your company, expressed as a vision statement or mission statement, provides the foundation for your organization's strategy and culture.
A mission and vision are standard and critical elements of a company's organizational strategy. Most established companies develop organizational mission statements and vision statements, which serve as foundational guides in the establishment of company objectives. The company then develops strategic and tactical plans for objectives.
A company's mission statement is essentially its statement of purpose. It serves as a guide for all of the company's decision-making. Shareholders, leaders and employees are generally the target of the mission. It should help workers within the organization know what decisions and tasks best align with the mission of the company. A mission statement offers insight into what company leaders view as the primary purpose for being in business.
Strategic management involves aligning business goal action plans with workplace performance objectives. In developing performance plans, a manager must clearly assess a company's mission, vision, values, goals and objectives. The business environment and competitive placement are also evaluated to identify the growth issues faced by the company, devise solutions to challenges and allocate roles and responsibilities to individuals and teams to carry out strategic goals.
Strategic planning involves developing specific business goals that are SMART: specific, measurable, achievable, relevant and timely. A business goal target might be to increase production by a specific amount annually to meet growing market demands. In 1998, for example, Harley-Davidson Inc. approached its 95th anniversary and found itself facing a growing challenge to its dominant position in the motorcycle industry because of its inability to timely fulfill lengthening customer waiting lists. Strategic business goals to meet this type of challenge might relate to increasing available production through licensing or retooling and expanding manufacturing.
Strategic thinking involves making a series of decisions about what actions the company intends to take to become more successful. A company often goes through a strategic planning process once a year, creating a document that is, in essence, a guidebook for the management team to use in the upcoming year. Companies should strive to make strategic thinking an ongoing, year-round process. At the heart of strategic thinking is the ability to anticipate major shifts in the competitive marketplace and identify emerging opportunities.
Dealing with limited resources of money, people and time is a fact of life for all businesses, even giant corporations. Strategic thinking enables a business owner to determine how to use these resources most effectively and advance the company toward its objectives. Strategic thinking focuses the management team on markets that are most likely to succeed. Strategic thinking helps the company avoid costly mistakes, such as opening a new retail location before the customer population is large enough to support it.
Strategic planning is critical to business success. Different from classic business planning, the strategic variety involves vision, mission and outside-of-the-box thinking. Strategic planning describes where you want your company to go, not necessarily how you're going to get there. However, like all other "travel plans," without knowing where you want to go, creating details on how to arrive are meaningless. Strategic planning defines the "where" that your company is heading.
Often confused with business operation plans, strategic plans are expressions of ownership dreams and visions of successful results. Strategic planning functions as the "design" just as a blueprint functions as the "how" to build something. The strategic plan displays the finished product or goal. Usually, in smaller businesses, strategic planning is focused on the overall company, not on a department or division.
Redcloud Systems offers 100 percent transparent and sustainable solutions for everyone. If you’re looking for a partner who can help you ‘make sense of information technology’ and turn it into a profitable asset to your business enterprise, look no further than us. We are here for you!.
Our number one priority is to make your organization successful by using the greatest enabler of this generation - technology. By leveraging our expertise in technology and applying it with proven methods, we will help you be impressive and successful.
We have the knowledge and skills to maximize your online infrastructure - whether it's on the enterprise cloud platform or just a website. We keep abreast with industry best practices, cutting-edge tools and relate them to you at the best possible time.
Reach out and partner with us. Your questions, needs, and comments are important to us! We want to connect.
403 16th St Suite 301
Denver CO 80202
7 E Bijou Street Suite 211
Colorado Springs CO 80903
P 719 387 8005
P 303 578 0218