Incapability or lack of knowledge of the way of implementing change at all organizational levels, in everyday process.
Strategic management is the process in which a current situation is analyzed, suitable strategies are formulated, then carried out in practice, modified and changed, according to a specific need. The process consists of consecutive and mutually connected activities or phases that lead to certain result. Strategies that organizations apply in order to achieve competitive advantage include situation analysis, strategy formulation, its implementation and strategy evolution.
Unfortunately, although it seems that a written strategy will give impressive results, no matter it is about functional ,competitive or corporate strategy, organizations rarely manage to put it into practice. There are many causes of failure, but the most common ones are :
The absence of a comprehensive and disciplined system for managing strategy implementation.
Unrequited profit from organizational resources and capacities.
The misunderstood effect of some important external factors . Therefore ,the process of external environmental scanning and evaluating is analyzed in the wrong way.
Missed favourable opportunities in an organization’s external environment that could improve business activity. On the other hand, negative trends or changes in the external environment that could downgrade business activity are not noticed.
Insufficiently motivated employees , since they should control how a strategy is being carried out and how effective it is.
How can Prudent help you?
Prudent can help you to improve process strategic management through counseling services and informatics solutions. We gain insight into a current situation scanning and evaluating an organization’s external and internal environment and an organizational context, then we choose the right strategy and after implementing it we evaluate not only the way it has been implemented but also achieved results . We do these analyses:
- External environment analysis: identifying positive and negative external trends i.e. using strategic group mapping we identify what trends can help an organization to achieve better business performance and what are negative trends or changes that can downgrade it.
- Internal environment analysis: using the BCG Matrix ( the Growth – Share Matrix ) and ADL Matrix (Strategic Condition Matrix ) we evaluate organizational resources ,capacity, competitive strength and key competences.
- SWOT analysis: it indicates important strategy questions for an organization to achieve sustainable competitive advantage and high level of performance.
In order to help an organization to achieve business advantage, Prudent adjusts process strategic management to suit every organization and it does it according to business an organization deals or wants to deal with , organizational capacity (resources and capabilities ) that helps it to maintain competitive advantage.
How to conduct strategic management?
Critical success factors include :
- Organization’s change capability – a change is inevitable in a new business environment, because of technological progress, resources exposed to a risk, available information , dynamic factors a contemporary organization is facing. To be successful means to look for a change and to except it. If you want to successfully deal with a change, you should use opportunities it bears and overcome challenges. No matter what type of change you tend to, a good strategic management could mean the difference between success and failure.An effective change doesn’t happen just like that. Our task is to introduce a change and monitor how it is being carried out, to support it and explain why it is necessary, to create an adequate organizational environment that will support employees to take responsibility for problems and their solutions.
- Innovation and creative capability– it is one of the most critical factors and it is crucial to strategic success in a new business environment. The phrase “Innovate or die “ means that organizations must be ready to launch a new product and service, adopt advanced technology, if they want to be competitive and survive in a market full of competitors.Our task is to develop a new approach to business activity and to offer new , unique solutions to problems , combining ideas among which we will find and recognize connections. A creative idea, its implementing into a process that can be used and sold means capability to direct creativity towards useful results.
- Sustainable competitive advantage in a contemporary business environment– although an organization is operating at a single location, it should still tend to be the best in its field of work in its small “world” and competitive arena.Using its knowledge, experience and collaborating with external highly educated experts Prudent can help an organization to find creative human resources, train its employees and direct them towards buyers, create an atmosphere of equality with tendency towards a flexible organizational structure.
To implement and maintain a strategic management system Prudent uses the Balanced Scorecard and Executive Strategy Manager It also offers counseling and education services for :
- Implementing and developing the Balanced Scorecard system that is used all over the world. Organizations use it in order to coordinate a strategy with business activities and ensure strategic aims are achieved, monitor business efficiency related to strategic aims, improve internal and external communication.
- Applying ESM solutions to strategic management as well as the Balanced Scorecard. They enable effective communication and decision making process. This advanced software solution enables its users communication, better meeting management and identifying key initiators of efficiency at all organizational levels