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Adolf Gerber Baumanagement Gesellschaft mbH

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Strategic management

What, then, is "strategic management"? It is not enough to say that it is the management of the process of strategic decision making. This fails to take into account a number of points important both in the management of an organisation and in the area of study [...].

The nature of strategic management is different from other aspects of management. An individual manager is most often required to deal with problems of operational control, such as the efficient production of goods, the management of a sale force, the monitoring of financial performance or the design of some new systems that will improve the efficiency of the organisation. These are all very important tasks, but they are essentially concerned with effectively managing resources already deployed often in a limited part of the organisation within the context and guidance of an existing strategy. Operational control is what managers are involved in for most of their time. It is vital to the effective implementation of strategy, but it is not the same as strategic management.

Nor is strategic management concerned only with taking decisions about major issues facing the organisation. It is also concerned with ensuring that the strategy is put into effect. It can be thought of as having three main elements within it, [...]. There is strategic choice, which is to do with the formulation of possible courses of action, their evaluation and the choice between them. And there is strategic implementation, which is concerned with both planning how the choice of strategy can be put into effect, and managing the changes required.

Before discussing these elements it is useful to make clear how they relate to each other [...].

Strategic management

The figure could have been shown in a linear form - strategic analysis preceding strategic choice, which in turn precedes strategy implementation. Indeed, many texts on the subject do just this. However, in practice, the stages do not take this linear form. It is very likely that the elements are interlinked: one way of evaluating a strategy would be to begin to implement it, so strategic choice and strategy implementation may overlap. Since strategic analysis should be an on-going activity, it will overlap with the implementation of strategy. [...]

Source: GERRY JOHNSON, KEVAN SCHOLES (1997) Exploring Corporate Strategy: Text and Cases, Hemel Hempstead: Prentice Hall Europe


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