5 Phases of Strategic Management Process
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ScribdTranslations5 Phases of Strategic Management Process
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ScribdTranslationsThe administrative process of developing and executing a strategy consists of 5 interrelated phases.
and integrated:
1.-Develop a strategic vision of the direction the company needs to take and of what in
what should focus its future technological product/market/client.
2.- Establish objectives and use it as signals to measure performance and progress of the
company.
3.-Develop a strategy to achieve the objectives and guide the company along the strategic course
what the administration outlined.
4.- Apply and execute the chosen strategy efficiently and effectively.
5.- Evaluate performance and implement corrective measures in the direction, objectives, the
strategies or long-term execution based on real experience, changing conditions,
new ideas and opportunities.
Phase I: Develop a strategic vision
The opinions and conclusions of the executives about the direction of the company and its
product/market/customer/technology futures constitute a strategic vision for the company,
which defines the aspirations of the executives for the company, by providing an overview of
where we are going and convincing reasons why it is sensible from the point of view
commercial. Thus, a strategic vision directs an organization on a particular path, outlines
a strategic route and shapes organizational identity. Well-conceived visions are
distinctive and specific to each organization.
Phase II: Establish objectives
The administrative purpose of establishing objectives is to turn the strategic vision into goals.
specific performance: they are the results and products that management aims to achieve.
Objectives represent an administrative commitment to achieve results and produce.
particular. Well-established objectives are quantifiable, measurable, and contain a
deadline for its achievement.
To avoid mediocre results, it is necessary to take into account the imperative of setting goals.
extensive, in addition, both short-term and long-term objectives are needed, the need for
objectives at all levels of the organization and finally the establishment of objectives must
to be descending and not ascending, the latter has 2 powerful advantages: the first is that it helps
to produce cohesion between the objectives and strategies of different areas of the organization. The
second is that it helps unify the central efforts to lead the company down the path
chosen strategy.
Phase III: Develop a strategy to achieve the objectives of the vision.
The task of devising a strategy involves solving a series of 'hows': how to take out of the
competition against rivals, how to respond to changing market conditions, how
control every functional piece of the business and develop the competencies and capabilities
necessary, such as reaching strategic and financial objectives. It also means exercising a
entrepreneurial cunning in choosing between the various strategic options: proactively seeking the
opportunities to do new things or to do the same things in a better or novel way.
Those who participate in the development of a strategy are the senior executives of the company. The
The executive president has the authority to set the direction, the goal, the strategy, and to take action.
to walk through each of the areas of the company. The final responsibility to lead the process
The development and execution of the strategy rests with the CEO.
Phase IV: Launch and execute the strategy
Managing the application of a test is an operations-oriented activity 'to make it
"things happen," with the purpose of carrying out basic commercial activities, so that
support the strategy; which is undoubtedly the most demanding and time-consuming part
of the control process of a strategy.
The action plan of the management to implement and execute the chosen strategy arises from the
evaluation of what the company will have to do differently and better, in light of its
specific operational practices and organizational circumstances, to execute it in a way
competent and achieve the desired financial and strategic performance.
In most situations, controlling the execution process of the strategy involves the
following main aspects.
Hire people with the necessary skills and experience to build and strengthen
consciously the competencies and competitive capabilities that support the strategy thus
how to organize work effort.
Allocate ample resources to critical activities to achieve strategic success.
Ensure that policies and procedures facilitate effective execution rather than impede it.
Use the best practices to perform basic business activities and seek
continuous improvements. Organizational units must periodically evaluate how they
they do things, in addition to diligently striving for useful changes and improvements.
Install operating systems and information that allow company personnel to carry out
better their strategic roles every day.
Motivate staff to pursue goals energetically and, if necessary, modify their
duties and work behaviors to better fit the requirements of an execution
successful implementation of the strategy.
Link rewards and incentives directly to the achievement of performance objectives and
to the good execution of the strategy.
Create a corporate culture and a work environment conducive to good execution of the
strategy.
Exert the necessary internal leadership to carry out the implementation and maintain improvements in
the way to execute the strategy. When obstacles or weaknesses arise, the management must
to see that they are addressed and rectified in a timely and effective manner.
Phase V: Supervise progress, evaluate performance, and undertake corrective actions.
The fifth phase of the administrative process of strategy – supervising new external developments,
assessing the company's progress and making corrective adjustments - is the starting point to decide whether
se deben mantener o cambiar la visión, los objetivos o la estrategia o bien los métodos de
execution of the strategy.
Whenever external conditions demand it, the direction, objectives, and should be reviewed.
strategy of a company. It is to be expected that a company will modify its strategic vision,
direction, objectives and strategies over time.
Similarly, it is common for a company to discover that one or more aspects of the application
and the execution of your strategy is not going as well as planned. The efficient execution of the
strategy is always the result of significant organizational learning; which is achieved through the
uneven way: in some areas it is somewhat fast and in others it proves to be a bit irritating. For
determine the aspects that work well and those that need improvement in both normal and
it is desirable to periodically evaluate the execution of the strategy. A successful execution of the
strategy involves the relentless pursuit of ways to improve and then to implement aspects
corrective actions whenever and wherever it is useful to do so.