Strategic management is the process, for formulating the strategy and leading the enterprise realizing the same. This includes handling incertainities:
- What does the competition do?
- Which technologies will enter the market?
- What will customers need tomorrow?
- Will there bi political or regulatory changes?
There are multiple methodical approaches for creating a strategy:
- Classical Strategy Process
- Agile Strategy Process
e.g. Lean Startup by Eric Ries
(Lean Startup by Eric Ries)
Change of Paradigm
When strategy meets reality, some turbulances will occur. It’s nothing else as the difference between theory and practices. It is key to understand some basics:
- Every enterprise is managed operationally
Every entrepreneur manages operationally, often on the basis of targets and measures, according to opportunities, following the competition or the requirements of the stakeholders. - Many enterprises muddle through
However, companies are often “drowning” in day-to-day business operations, shuffling from short-term to short-term decisions. there is a strong dependency on chance. - Few control strategically
Strategic management offers perspectives and fundamental decisions, is proactive, considered and forward-looking – even beyond the horizon.
If you don’t know where you’re going, you’ll end up somewhere else.
– Mark Twain
Therefore, at enterprises, it’s crucial to understand, that everyone must think strategically. That might sound overwhelming on first sight, but isn’t impossible. In fact, certain hierarchy levels simply require read leadership or guardrails for understanding and working based on the enterprises strategy.
