Strategic Management: From the Organization to the Individual
Maximizing an organization’s ability to grow and maintain positive momentum is something every leader must focus in on. The ability to deliver on company-wide initiatives can spell the difference between success and failure. But what is Strategic Management?
What is Strategic Management?
In the 1950’s and 1960’s, big thinkers began polishing the theories on how organizations can best operate and function. Today we take Peter Drucker and Alfred Chandler’s thoughts on managing organizations for granted. They were thought pioneers in streamlining operations across large organizations operating in a free market economy.
Assessing External Factors
The first component of Strategic Management is the understanding of your company’s surroundings. What kind of market are you operating in? What are the legal requirements and tax burdens involved in offering your services? What do your customers and client expect from you?
Make a list of all of these factors so that they can be accounted for in your strategic planning. Knowing how to operate your company is one thing, but knowing in which direction to steer the ship is quite another.
Understanding Internal Constraints
The external forces on your company are matched only by the internal limitations of you and your team. Do you have enough funding to take on your entire marketing budget? Is your support team able to handle the needs of your clients if you expand into a new product line? Can you develop a new product in a large enough quantity to generate a significant profit margin? How quickly can you expand your team, without sacrificing quality in your on boarding process?
All of these questions will impact how you go about attacking your new market. Once you know where the ship is headed, it’s time to fine-tune the motor to make sure you can keep it at speed.
Use Strategic Management in Your Life to Boost Performance
While strategic management is an important skill for organizations, it can also be used in your personal life to maximize performance. What is the environment like where you live? Are you able to stay healthy and effectively manage stress? Are you focusing on the right things in your life, or are you letting distractions get in the way?
Plan, Implement, Analyze, Adjust and Thrive
At the turn of the century, thousands of “self-help” books began discussing the importance of applying some of these strategies in your personal life. Recently Ahead of the Curve: A Strategic Management Book was released in eBook format. This is just one example of a shift towards applying group management strategies to your personal life.