There are five tasks in strategic management that need to be accomplished. These five tasks are triggered by three big questions in strategic management: where are we now, where do we want to go, and how will we get there.
The first task of strategic management begins with thinking strategically. It helps to have a vision of the business makeup in the future and what the business can look forward to 5 to ten years later. Having a vision is valuable in injecting a sense of purpose into the activities of the business. It sets not only a short term but also a long term direction. It gives the business a strong identity as well. Having vision also helps define who the company is, what the company does, and where the company is headed.
Aside from having a mission, a business must also have a mission. The mission reflects the vision of the business – of what is seeks to do and what it wants to become. It gives a clear view of what the business is trying to achieve not only for itself, but also for its stakeholders. It also signifies the intent to set sights on particular business positions.
The second task of strategic management is setting objectives. Objectives are set to convert the company’s mission into performance targets. They help develop yardsticks to track performance. Objectives also push the business to be inventive, intentional, and focused. Setting challenging but feasible objectives keeps the business from becoming complacent, drifting, and internally confused. It also guards the business from keeping a performance standstill.
After having set the mission, vision, and goals of the business, crafting strategies come next. Strategy making concerns how the business can reach the desired strategic and financial objectives, how it can outperform its rivals and secure competitive advantage, how it can respond to industry dynamics and competitive environments, how it can keep its guard up against threats to its well being, and how to keep itself growing. The actual strategy of the business is a blend of deliberate and purposeful actions (also called intended strategy), and as needed reactions to unexpected developments and fresh competitive pressures (or unintended strategy).
Once a strategic plans is in place, the business is ready to carry out the fourth task of strategic management: implementing strategy. Strategy implementation involves creating fits between the way things are done and what it takes to achieve effective strategy execution. It also requires proficient and efficient execution of strategy, as well as producing excellent results in a timely manner.
The fifth task of strategic management is evaluating performance. This is a crucial task of strategic management as none of all the other tasks are a one-time only exercise. Managers must constantly evaluate performance, monitor conditions and decide how well things are running, and make necessary adjustments. Corrective adjustments can necessitate making changes in the long term direction of the business, redefining the business, raising or lowering the performance targets, modifying strategies, and improving strategy execution.