Strategic management and strategic planning are both incredibly important aspects of organizational management. When used in tandem, strategic management and planning create a comprehensive set of procedures that will govern the future decisions of the business. By creating this type of structured operation, businesses are able to improve their efficiency, reduce their expenses, and consolidate their initiatives.
The Difference Between Strategic Management and Strategic Planning
Some sources will tell you that strategic management and strategic planning are the same thing. While this can be true, as they are both part of the same overall process, each phrase has a slightly different implication. Strategic planning is the process of formulating a direction for an organization, while strategic management is the process of determining how this direction can be achieved. Strategic planning and management are so consistently used together that they are often referred to simply as “strategic management.” But the differences are very important for an organization that is attempting to develop a reliable strategy.
Most businesses complete some form of strategic planning; they have a series of business initiatives and a rough idea of their goals. But where most businesses falter is in their strategic management. Their company’s operations need to be analyzed and fine-tuned so that they are working towards the initiatives that have been set by their strategic planning. Thus, strategic planning and strategic management both need to be used together in order to be effective.
The strategic process begins with strategic planning, at which point the organization decides upon its mission statement and objectives. Through the process of strategic planning, an organization will identify its major hurdles and determine the best ways to take advantage of its resources and environment. Once this is complete, the strategic management process begins. Here, the organization will need to determine both short-term and long-term methods to leverage its resources in order to meet its goals.
The Chief Benefits of Strategic Management and Planning
Strategic management and strategic planning give an organization a direction to move in. Employees, managerial staff, and upper-level management will all be working together to achieve these goals. Through this focus, the company can ensure that their operations are as efficient and effective as possible. The decision making process is further streamlined because the organization knows exactly what it is working towards and what it needs to accomplish these goals.
Not only are initiatives decided through the process of planning, but they are also prioritized through the process of management. This aids the organization in resource and time management, by ensuring that the right priorities are tackled first. Once the plans have been successfully deployed, they will also be continually analyzed and modified. This gives the organization a structure through which they can constantly improve and investigate their operations.
Both short-term goals and long-term goals can be successfully managed through these strategies, keeping a business on task and creating metrics by which success can be rated. For organizations that are growing and developing, this is even more important; strategic management and planning will aid a business in avoiding over-extension and improving their results.
Through strategic management and planning, companies are able to improve upon every level of their business. But this type of strategy can be difficult to develop from the ground up. Strategy and Management Services, Inc. provides comprehensive strategy planning and management services, designed to improve upon the operations of any organizations. Contact SAMS today to learn more about integrating strategic management and planning into your business.