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Strategy management - importance for company success

What is strategic management? What value does this very often time-consuming process create? These are frequently enough asked questions, trying to understand how much time should be invested in the implementation of strategic management methodologies in the organization.


Strategy management and types

Depending on the organization and its area of operation, there may be several options for managing the strategy from the point of view of duration, i.e. how far ahead the organization plans. The types are as follows: a long-term strategy and a short-term strategy.

Short-term strategy - if the organization operates in a very rapidly changing environment, the organization can plan only a year ahead and prepare a specific action plan only for the next quarter. In this case, it would be the planning of a short-term strategy.

Long-term strategy - meanwhile, an organization operating in a more stable environment can plan from 3 to 5 years ahead and lay out a detailed plan of action for the next 6-12 months. A 3-5-year strategy is usually called a long-term strategy.


What is the importance of strategy management for the success of organization?

Strategic management is a tool that helps an organization plan for the future and clearly communicate the goals set for the rest of the organization, set expectations of what results the organization expects from its community.


Other very important elements that strategic management gives an opportunity to understand:

  • where organization is currently

  • where organization wants to be

  • what are the ways of how organization will try to seek it's goals

  • how and when organization will measure it's progress as per set targets

  • how organization employees will be motivated to seek company strategic targets

In conclusion, the goal of strategic management is not only to identify, agree and monitor the agreed short-term and long-term goals, but also to provide more transparency to the employees of the organization, where the organization is moving towards and whether they want to be a part of it.

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