The concept of strategic management first entered the American business place shortly after World War II when returning Army officers re-entered the workplace. These officers returned from war with a variety of strategic management ideas that were then incorporated into their business management plans. Since then, strategic management has evolved into a widely accepted practice. While each specific strategic management plan may vary in its details, a few commonly accepted steps are typical of most plans.
Mission Statement
Strategic management plans begin as abstract concepts created at the highest echelons of the organization. The typical strategic management plan begins with a concise mission statement describing the organization's reason for being in existence. An existing mission statement will be revised to incorporate the organization's long-term vision of where it sees itself in the future. The strategic management plan is then devised to align the day-to-day operational activities of the organization with this mission statement in order to drive the business in the desired direction.
Situation Analysis
The situation analysis is used to determine whether there is a gap between where the organization is now and where it wants to be in the future. The SWOT analysis and PEST analysis are common situational analysis tools used in the strategic management planning process. The SWOT analysis identifies the organization's strengths, weaknesses, opportunities and threats. The PEST analysis evaluates the political, economic, social and technological factors that may influence the direction of the strategic management plan.
SMART Goals
Once organizational leaders have completed the situation analysis, they will typically set strategic goals designed to lead the organization in the desired direction. The use of SMART goals in the strategic management planning process ensures that the goals chosen are specific, measurable, reasonably attainable, relevant to the mission and tied to a specific timeline for completion.
Implementation
The final stage of the strategic management process is the actual implementation of the plan. This generally takes the form of policies and procedures designed to reach the goals as outlined in the strategic management plan. These policies and procedures are implemented by supervisors and workers at the functional or operational levels of the organization.
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