The strategic management process is all about putting strategic plans into action in a company’s operations. This process can be somewhat difficult, depending on the size of a company and the nature of the goals or objectives. To properly implement a strategic management process, a company must create an environment with the potential to change, outline a budget for the entire process, and shape the company’s culture to fit the strategy, while upper management exudes proper leadership. This entire process can take some time to complete, though it may never really stop at all. For example, evaluation and control of each activity after implementation is almost always necessary.
The external business environment does not remain static, and businesses can ill afford to stay stagnant as well. Therefore, a company must be able to have some flexibility in order to adjust to market changes. Owners and upper-level executives need to create an environment that allows for an attitude of change and willingness to alter operations to permeate the business. The strategic management process thrives on new ideas that focus on business improvements. Allowing employees to suggest changes and work alongside mangers and executives during the change process is a good start to this business practice.
Like all business activities, money is necessary to move a company from one place to another, especially during the strategic management process. For example, a major overhaul is necessary to change product quality for the company’s main good. Though this creates a significant competitive advantage for the company, it costs a great deal of money. A budget is necessary to make these changes occur during the strategic management process. Accountants can help put together a budget and work administratively on the background processes.
Proper leadership is another important characteristic of the strategic management process. This entire activity may not be easy to complete. Owners and executives must therefore create the proper corporate culture through their leadership design. A company’s culture allows employees to buy in to new concepts and ideas that will increase the business’s long-term viability. Well-trained and supportive employees are necessary to keep a company moving along and help formulate or implement the strategies designed by the strategic management process.
Evaluation and control ensures that a company's strategic business processes remain stable and viable. Owners and managers can also gauge the level of success after implementing changes. Again, because the business environment is not always stable, changes from a strategic management process need review to ensure proper results occur. Small tweaks or adjustments to business processes can help create large profit increases.
