Five steps of strategic management
While there are different approaches and frameworks for strategic management, there are generally the same five steps or stages in the process:
1. Identification
The first step in strategic management is evaluating the company’s current direction. This often includes understanding the company’s goal, mission and overall strategic direction. Assessing where the company’s current process will help you achieve your goal.
2. Analysis
Once you understand the current process, you must analyze the details. What is working? What is not working? What input from organizational stakeholders can you gather? This is the time to answer any questions that will help solidify the necessary elements of the strategic plan. A SWOT analysis, or identification of strengths, weaknesses, opportunities and threats, is a useful tool.
3. Formation
Once you have the information you need, it is time to create an action plan for reaching the goal. Make sure the steps are clear, focused and directly related to the goal. Prepare easy-to-understand implementation guidelines if the process or procedure will impact many people within the organization.
4. Execution
Follow the steps outlined in your strategic plan. Make sure that all stakeholders are implementing the plan as designed for maximum efficiency.
5. Evaluation
Evaluate the final product. Did you achieve your goal? Was the process implemented appropriately company-wide? Based on your answers to these questions, you can reflect and revise as needed.