Functions of strategic management
Strategic management is a sequential execution of the functions, mechanism of action which is applied to the enterprise as a whole and to its individual departments and functional areas. The main functions include:
- advanced strategic planning;
- organizing and ensuring the implementation of the plans;
- coordination of actions of all structures of the enterprise for the implementation of the tasks;
- motivation of personnel for prompt and efficient execution of the strategic objectives;
- permanent control over the progress of the strategy developed.
Future strategic planning is based on the analysis of the current realities of the market and its monitoring. This allows you to assess possible risks and to make accurate forecasts of changes in market conditions, and to develop the right strategy taking into account the distribution of available material and labor resources. Organization and enforcement of the plans is in the selection and coordination of management mechanisms and structures, the creation of a single team United by a common purpose and a shared corporate culture that supports the intended strategic plan.
Coordination of all the structures aimed at coherence and consistency of the decisions taken at the level of individual workers and departments, as well as consistent consolidation of the local level strategies of staff management. Motivation involves the development and use of a system of incentives required to create a creative atmosphere and material incentives that motivate workers to high-quality addressing their strategic objectives. Monitoring is necessary to track the progress of tasks, control its correctness and timely correct the deviation.
The principles of strategic management
Strategic management is based on the following principles:
- the scientific approach combined with creativity and improvisation;
a sense of purpose, aimed at speedy execution of tasks and achievement of strategic goals;
- flexible approach, allowing time to consider the changes and make adjustments to the goal;
accuracy and maximum detail points of the strategic plan;
- a systematic approach to strategy formation and the implementation of the tasks;
- consolidation of functional strategies across the business;
- the involvement of each employee of the company for the development of strategic plans;
- ensuring the necessary conditions for their implementation.