Strategic management consulting
Strategic management consulting – Strategic management consulting or strategic management consulting is an analysis of important and salient issues of the organization that is adopted by the senior management of the organization on behalf of the owners, in order to control resources in environments outside the organization. Given the rapidly changing environmental environment and the complexity of organizational decisions, the need for a comprehensive plan to address such issues becomes more apparent than ever before. This plan is nothing but a strategic plan.
Strategic management is the solution to many of the problems of today’s organizations by relying on a dynamic, forward-looking, community-oriented and contingent mentality. The foundations of strategic management are based on managers’ perceptions of competing companies, markets, prices, raw material suppliers, distributors, governments, creditors, shareholders, and customers around the world, and these factors determine success. Commercial in today’s world.
One of the most important tools that organizations can use to succeed in the future will be “strategic management”. Strategic management allows the organization to act in a creative and innovative way and not to be passive in shaping its future. This management style allows the organization to take the initiative and shape its activities in such a way that it exerts influence (not just reacts to actions), thus determining its own destiny and controlling the future.
Among the services that can be provided by Behin Yab Tejarat Consulting Engineers regarding strategic management consulting or strategic planning are:
Analysis of the situation
Develop a strategy
Execute the strategy
Strategic management is all about defining and describing the strategies that managers seek in order to achieve better performance and create a superior competitive advantage. .
Another definition of strategic management: A set of decisions and activities that a manager makes to achieve results from the performance of his organization.
Strategic management is the process of following the organization’s mission statement based on the relationship between the organization and the environment around it. Management must make the right decision based on managerial knowledge and analysis and organizational competition. The goals of the organization.
The term Strategic Management refers to the strategic decision-making activity in an organization. Strategic management is a concept that emerges in the organization and evolves over time. Sometimes the term “policy and strategy formulation” or “business policy” is also used.
Strategic planning management is guided by the use of evaluation techniques such as SWOT Analysis (strengths, weaknesses, threats and opportunities). The manager must make the best use of the organization’s strengths and reduce the weaknesses of his organization, he must recognize the opportunities in the environment and not ignore the threats.
Strategic planning management is nothing but the planning of predictable situations and low probabilities. Strategic Plan In small and large organizations operating in a competitive market, by developing and implementing the appropriate strategy to maintain a “sustainable competitive advantage.”
Strategic planning is an ongoing process to evaluate and control the business or industry in which the organization is present. Need to provide an alternative strategy. Strategy provides a vision for employees, a vision that helps employees understand their role and position and demonstrates that role’s relationship with other members of the organization in advancing future plans.
The strategic management process has four stages as follows:
1. Environmental review – Environmental review refers to the process of collecting, reviewing and providing information for strategic purposes. This process analyzes the internal and external factors affecting an organization. After performing the process of environmental analysis, management must constantly evaluate it and work to improve it.
2. Strategy Determination – Strategy formulation is the decision-making process regarding the best performance to achieve organizational goals. After an environmental review, managers determine corporate, business, and operational strategies.
3. Strategy Implementation – Strategy implementation means applying the desired strategy or implementing the organization’s chosen strategy. Strategy implementation includes organizational structure design, resource distribution, decision making process development, and human resource management.
4. Strategy Evaluation – Strategy evaluation is the final stage of the strategy management process. Key activities of strategy evaluation include: evaluation of internal and external factors that are, in fact, the roots of current strategies, measurement performance, and corrective actions. Evaluation ensures that the organizational strategy as well as its implementation is in line with organizational goals.
These are the steps that are taken in chronological order when creating a new strategic management plan. Businesses with a strategic management plan now go through these steps in proportion to the requirements and make the necessary changes.
Strategic management is an ongoing process. Therefore, it must be considered that each component communicates with the other components, and this interaction often occurs in a coordinated manner.
Benefits of strategic management Strategic management consulting:
One of the most important benefits of strategic management is identifying and prioritizing opportunities. Going to new products and services or markets will only be possible if it has already been planned in the organization’s strategy document. Strategic management should give the organization the authority and ability to review the activities of this program in terms of cost-benefit to determine its profitability for the organization.
Financial benefits of strategic management
You should note that the strategic plan does not rely solely on the financial benefits aspect. But by evaluating the profitability of the business, it can be concluded whether the business is strategically in full alignment with its goals and priorities.
The organization must be able to properly align itself with market and customer demand with a specific program.
A study in the United States found that about 100,000 businesses went bankrupt just because they lacked strategic focus or strategic direction.
Firms with higher performance capabilities are more likely to make unstructured decisions (non-repetitive decisions, one-time decisions) because they have short-term and long-term strategies and have already anticipated the possible consequences of each action.
In contrast, companies that do not act on a meaningful and precise strategy plan are always in trial and error and face internal problems and lack of focus and often fail.
Non-financial benefits of strategic management
Awareness of external threats, improving the organization’s understanding of competitors’ strengths and weaknesses, and increasing employee productivity are among these benefits. If the strategic plan clearly defines the relationship between manpower performance and reward, manpower resistances will be minimized when any change is proposed.
The key to strategic management is the ability to solve problems and prevent future problems in the organization. The strategic plan should be able to rationally justify the changes required by the organization and relate them to the human resource needs in the best possible way. Finally, strategic management must be able to provide a clear and appropriate order between the company’s internal and external activities and processes.
Strategic management levels Strategic management consulting
The strategic management process provides a logical, systematic and purposeful approach to determining the future direction of the organization.
There must be clear boundaries between management processes. Management processes include: formulating, evaluating, implementing, and controlling, and articulating the relationship between goals, strategies, and the environment.
Evaluate employee performance in strategic management:
By studying and recognizing the organization in different ways, we seek to define quantitative and qualitative indicators (criteria) regarding the performance of each individual in the organization. These indicators help the top management of the organization in evaluating and controlling the performance of human resources. As mentioned earlier, strategic management must have a framework for the relationship between processes and the employee reward system (even punishment). If we want to match employees’ rewards with their effectiveness, there must be quantitative and qualitative benchmarks to measure their performance with each other.
Performance Indicators such as KPI, PI, KRI
The key KPI performance index is one of the most important of these indicators. The key performance indicator is a measurable value and shows how effective a company is in achieving its key business goals. Organizations use key performance metrics at different levels to assess how close they are to their goals. High-level KPIs focus on the entire performance of the organization; low-level KPIs focus on departments such as sales, marketing, and public relations.
The balanced scorecard: BSC
It is a strategic planning and management system in business, industry, government and even non-profit organizations around the world with the task of coordinating activities with the vision and strategy of the organization, improving the internal and external communications of the organization, and controlling the performance of the organization to meet goals. , Is used. The Balanced Scorecard is designed to examine quality indicators in addition to quantitative indicators and to establish a fundamental balance between them.