In the present scenario, businesses operate in an ever changing environment that is full of unpredictable risks. So, in order to keep the business thriving, the managers are expected to create a number of powerful strategies. Strategic management thus necessitates the process of formulation of significant strategies by the managers so as to enhance the overall performance of their organisation. Strategic management in an organisation ensures that common goals are set and all the other factors are inclined towards achieving those objectives. It also ensures that the organisation remains flexible towards any external changes.
Strategic management helps an organisation in many ways. It facilitates:
- Faster and effective decision making.
- Capturing opportunities.
- Employee motivation.
- Counteracting threats and converting them into opportunities.
- Prediction of probable market trends.
- Improving overall performance.
It is believed that there are four core pillars of strategic management. These pillars are stated below:
Setting goals
The organisational goals act as the foundation of strategic management. The managers need to identify the purpose of setting strategy, the objectives of an organisation or the problem that needs to be solved. Once he identifies the purpose/objective/problems, only then will they be able to formulate a strategy that will help in achieving those set goals. It will enable him to focus and work towards achieving specific outcomes.
Communication
Communication is an indispensable part of an organisation. Though the strategies are formulated by the top level management, they are implemented by the entire organisation. So, it is essential to have a proper communication channel between the top management and the subordinates. The managers need to explain the strategies to the employees comprehensively, only then will they be able to implement it optimally.
Trust
Trust is the bedrock of any relationship, especially the employee-employer and manager-subordinate relationship. A company that is able to cultivate a strong sense of trust in the workplace is likely to be more successful. The employees that have to implement the strategy formulated by the top management should have faith in the organisation. They should trust the management, only then will they execute the formulated strategy optimally.
Accountability
For the smooth working and successful completion of projects and processes, the top management needs to be held accountable for different things. High level of management is needed to achieve the formulated strategy. This is present in organisation that is held accountable for its execution. Once the goals and objectives are defined, certain people/ top management should be held accountable to ensure the achievement of those objectives. This will lead to enhanced productivity.
Closing note
Strategic management is the art of managing employees in a manner which helps an organisation to attain its stated objectives. It is the task of managers to create powerful strategies and to ensure that the formulated strategies are both effective and efficient. However, the manager who formulates strategies should have a thorough knowledge of the general and competitive organisational environment so that he can take the right decisions. Thus, the aspirants should sharpen their managerial and decision making skills to make themselves a sought-after candidate for the position. You can pursue MIT-SDE distance MBA equivalent PGDM and PGDBA courses to widen your knowledge and brace your skills. The courses are designed in such a way that they inculcate the necessary decision-making skill in future managers so that they can create effective strategies.