Strategic management of a company involves creating an organization-wide framework for success. This involves planning as well as monitoring and implementing strategies and encouraging employees to prioritize tasks that support strategic goals. It also includes looking for opportunities and analyzing threats and obstacles within the business environment. This type of management can be handled by top management, however, innovative concepts can be derived from any employee. Companies employ descriptive and prescriptive strategies management methods based on renowned managerial theories to help them make decision, allocate resources and meet their goals.

The first step of strategic management is to examine the current state of the company. This involves assessing the company’s internal structure resources, capabilities, and structure as well evaluating any strategic plans. Businesses can also employ tools like SWOT analysis to discover strengths or weaknesses, as well as opportunities and threats in the marketplace.

After the initial assessment companies must create an outline of their vision or modify it to reflect the overall strategic goals of the organization. These goals can range from increasing revenue to cutting costs. These goals usually include a measurable target that can be achieved over time.

But formulating the strategy on its own will not be enough to ensure its success. The final step in strategic management is to implement the plan, which requires great communication and coordination across departments and levels of management. Selecting and implementing a strategy management framework such as the Balanced Scorecard, Theory of Change or Objectives and Key Results (OKR) is crucial to organizing and managing the different aspects of the strategic plan.

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