STRATEGIC

MANAGEMENT

Management by Results
 Capstone
.
 MD

C-suite: Marketing, Finance, Operations, HR,…

Senior

Middle

Operations
 STRATEGIC MANAGEMENT
elements

Create Strategic Implement the Evaluate the

Plan Plan Outcome
 planning

• Planning > future thinking.

• Planning > integrated decision making process

• Examples : Annual Budget

5 Year Plan
Perspective Plan
 STRATEGIC Plan

• Examples : - PRSP
- MDG
- Vision 2021

Q1. What is the difference ?

 Strategy

• Strategic Plan is a vision driven plan - an aspired

position to be attained at the end of plan period.

• Strategy is unique set of activities performed to

attain the vision.

• Strategic Plan is a long-term plan.

• Strategic Plan is a shared plan.
• Strategic Plan is a leader-driven plan.
 Strategic management

• Strategic Management is a 5 step process;

1. Develop Vision statement

Planning 2. Develop Objectives of measurement
3. Craft Strategy to attain the vision

Managing 4. Follow through the Implementation

5. Evaluate the outcome
 Strategic management
5 tasks

• The first 3 tasks i.e. Vision, Objective, Strategy

relate to Planning

• The last 2 tasks i.e. Implementation, Evaluation

relate to Management

• The total set of activities is Strategic Management.

• Strategic Management is Management by Results.
 STRATEGIC PLANNING
3 questions to start with

• #1. Where we are now ?

: our current position

• #2. Where can we go ?

: the big picture
BHAG (big hairy audacious goal)

• #3. How do we propose to go ?

: the strategy
 THE FRAMEWORK

• Hierarchical Process
– Top Down

• Diverse group of people make up the planning team

• Developed through open and free discussions

– Bottom Up

• The sharing of ideas forges commitment

- Shared Vision
 PLANNING
An Iterative Process

• Ritual

• Habit

• Fail to Plan Plan to Fail

 Strategic Plan

• It is a Long-term plan

• It is developed along a Vision

• Vision is the Destination

 Strategic Plan

• Mission is the tasks performed to attain

vision

• Strategy is delivery through mission

attained
 Strategic Management

• Implementation and Evaluation are integral part of

the Planning Process.

• To facilitate effective implementation the plan is

divided into several strategic directions.

• Each direction comprises several tasks,

each task assigned to a group or individual.
 Evaluation

• Evaluation is a simultaneous activity as the plan is

implemented.

• Ensures that the plan is on track producing the desired

output (outcome).

• Else corrective actions may be required.

• Balanced Score Card (BSC) is an innovative tool devised

for effective implementation of the plan.
?
 Strategic Management

• Is not a panacea for all organizations.

• It may not work in an organization where

 The roof has fallen (it needs crisis management )
 The leadership is weak
 There are cultural clashes
 Strategic Management

• But with the right elements in, it creates

 a commitment through team building

 a culture that identifies and supports the mission

 a focus in the selected activities as the organization

marches towards the vision