If you don’t know where you want to go, don’t be surprised if you end up somewhere completely different!
Mark Twain
Strategic management is the process of formulating, implementing, and evaluating strategies that help organizations achieve long-term goals and maintain competitive advantage. It involves a series of interconnected layers, each targeting a specific aspect of organizational direction and performance. These layers can be visualized as a pyramid, with each level building on the previous one.
- Vision
- Defines the long-term aspirations of the organization.
- Targets the overall direction and ultimate goals the organization seeks to achieve. It answers the “Why do we exist?” question.
- Mission
- Clarifies the purpose and core values of the organization.
- Targets the reason for being, guiding the day-to-day operations and decisions. It answers “What do we do?”
- Strategy
- Outlines the plan of action to achieve the mission and work towards the vision.
- Targets the path to success, focusing on competitive positioning, resource allocation, and operational effectiveness.
- Key Results
- Defines measurable outcomes that indicate progress toward the strategy’s objectives.
- Targets specific performance metrics that gauge success and guide adjustments along the way.
Each layer of the pyramid supports and aligns with the others, ensuring that the organization’s efforts are unified and strategically focused.