Whatever the industry, company strategic management provides a framework to create and manage business goals. It helps companies discover areas of improvement in their operations and develop strategies to aid them in achieving their goals. The approach can be prescriptive in which specific processes are laid out for goal setting and implementation, or descriptive, where general guidelines are provided.
The first step in company strategic management is to establish the business goals. This involves analyzing the internal and external factors which influence the operations of the company and setting goals to guide decisions. These goals are usually communicated to all departments, and can be implemented.
Once the business goals are set, the initial year’s goals must be established to ensure they align with the strategic goals. These annual objectives should be broken down into key results and KPIs which are quantifiable as well as actionable. They should also be connected to the overall strategy.
The next step is monitoring and evaluating. In this stage the company will review its progress toward realizing its business goals and determine if any changes need to be made to the process of strategic management. This could include modifying the business model, eliminating ineffective strategies and monitoring the external environment and internal operations for possible change. This process can also aid in the development of efficient strategies to address competition threats and market opportunities. It can also assist in improving communication between team members and creating a plan for overcoming obstacles that could hinder the strategic goals.