STRATEGIC MANAGEMENT BASICS

I. WHAT IS STRATEGIC MANAGEMENT?
The most important criteria of any organizational effectiveness is not its operational efficiency but its ability to adapt to environmental change.

Strategic management is both a process and a philosophy for determining and controlling the organization’s relationship to its changing environment.
As a process, it defines approaches and techniques to help organizational management adapt to the dynamics of today’s situations.
Through the use of objectives and strategies, strategic management endeavors to achieve efficient programmes to accomplish the organization’s mission.
As a philosophy, strategic management changes how managers look at competition,customers,markets,and even the organization itself.

In the public sector ,it changes its purpose for maintaining laws and order, social and economic development, security and defence activities, its bureaucratic system and principles.

Its purpose is to stimulate management’s awareness of the strategic implications of environmental events and internal decisions.

Strategic management provides a fresh approach to reemphasizing responsibilities managers and administrators has always had.
This approach has been necessitated by the rapid redefinition of the entire political environment.
Properly implemented, strategic management permeates all major activities and decision making by raising the level of consciousness and providing valuable insights that are otherwise unobtainable.
Overall, strategic management is the best fully integrated approach we know of for managing change.

Effective strategic management is characterized by:
· Clear direction and purpose;
· Objectives, goals and strategies consistent with the organizational mission;
· Continuous monitoring of internal and external environment;
· Integration of operating budgets, profit or development plans with the strategic plan;
· Continuous monitoring of progress with revision of plans and programmes as appropriate;
· Creation of strategic atmosphere that fosters a team spirit;
· Commitment of necessary resources and the development of systems to provide necessary management information.

The resources and effort required to develop a strategic management philosophy in many organization could be quite significant.
It is a major commitment, which should not be undertaken lightly.
Thoughtful consideration is given not only to the operational requirements, but particularly to the demands placed upon the organization’s personnel.
It will require training and educating managers and administrators to the new way of making decisions.
And,it most certainly will require that some changes take place in the existing order of things.

The costs, as material as they could be, must be weighted against the benefits we have observed in an organization.
These benefits from strategic management include:
· Recognition of potential strategic implications of every major action and event;
· Better understanding of the organization and its industry or sector;
· More effective decision making;
· Improved objectives, goals and strategies;
· Reduced resistance to change through proper implementation;
· Enhanced communication and mutual understanding.

To be appraised of more information on strategic management,please contact us at:baconsultante@gmail.com