How Does Strategic Management Typically Evolve in a Corporation?
Strategic management typically evolves in a corporation through a four-step process of auditing, development, implementation and evaluation. Strategic management changes companies via a collective system of processes, plans and strategies that a company uses to order and coordinate resources and actions and align them with its missions and goals.
The main purpose of strategic management is to transform the static aspects of goals, missions and aims into a practical, sustainable plan, while still allowing for flexibility and evolution based on an ever-changing market environment. Another term for this is strategy execution, focusing on a company’s ability to internally digest feedback and strategically evolve appropriately.
Most methodologies for strategic management follow the same series of steps. First, the company audits itself, developing a complete understanding of its current scenario.
Next, the directors or an external company develop a high-level strategy, focusing on the goals of the company.
Third, this high level-plan is translated into actionable steps, rules and policies that are applicable across the company.
Finally, an evaluation or sustained phase begins. This is an ongoing phase where continuous refinement, analysis, auditing and evolution takes place, in order to adapt to a changing market or changing goals within the company. This phase focuses on the company’s culture, performance and communication, among other aspects.