Question

The strategic management process is key to the leadership of a company. What is involved in the leadership of this process and how it differs from the day-to-day management of the company?

Answer 1

Strategic management process

A leader while handling strategic management process should get involved in the below activities

1. Communication: Once strategy is framed it needs to be effectively communicated to the entire organization right from the labours to the management team. Only when everyone has clarity on what are the strategies they would thrive to achieve the same.
2. Resources: Allocating resources by the leader comes next wherein the team in order to work towards the strategy should be allocated with tasks, sub tasks, tools, equipment etc.
3. Policy Framing: Framing policies and procedures would be next step in implementation which guides the team members towards achievement of the strategy.
4. Budget: Keeping an eye on the financial aspects like budgeting, cost management, etc is also very important part of implementation.

It totally differs from the day-to-day management of the company:

1. Day to day management would typically involve transactional work more than strategic work, the above said activities is more strategic and happens only once in a while.
2. Only when the high level strategies are framed the day to day activities come into picture.