Strategic management for a company is a process that helps project leaders, stakeholders in the company and team members understand what their overall goals are. It is essential for any business, regardless of size as it builds an atmosphere of camaraderie among team members as well as it provides a North Star to guide decisions.
This involves analyzing the external and internal environments to identify opportunities, threats and the strengths and weaknesses of the company. The company then formulates plans to achieve its long-term goals. These plans could include implementing processes to ensure the company’s competitiveness, as well as discovering unique advantages and selecting strategies that will help the company grow.
The executive leadership team will then relay the plan to the teams. It can take a lot of time to garner the support for any strategic plan. The leadership team must develop a system of continuous communication to keep the goals top-of-mind for employees.
The strategic planning process may be iterative and the business must be able to change its goals in order to adapt to disruptions and new opportunities. This process requires external and internal analysis and the executive leadership team must be able to swiftly move resources around and alter the strategic direction of the business.
Emaar Properties in the UAE is a perfect example of strategic management at its best. Emaar strategically built Dubai skyscrapers like Burj Khalifa and Dubai Mall in order that it could establish itself as a destination that is world-class. Another example is Australia’s “buy now, pay later” fintech Afterpay that successfully capitalized on a shift in customers’ preferences for flexible payment options.