Strategic management process

Figma

What is the strategic management process?

Every company needs an in-depth plan to stay ahead of market shifts—and their competition. The strategic management process helps companies do just that, guiding them to set mission-driven business goals and manage resources effectively to achieve them.

Read on to learn more about:

Benefits of the strategic management process
5 steps to successful strategic management
How to improve your strategic management process

Why is strategic management important?

An effective strategic management process can help you:

Gain a competitive advantage. Keep tabs on external forces and key competitors, so that teams can adapt quickly.
Make operational improvements. Assess internal workflows and resources, pinpointing any adjustments necessary to reach team goals.
Solve problems proactively. Tackle new opportunities you spot, and dodge competitive threats.
Get company-wide buy-in. Align design, development, marketing, and other key teams from the start to build better products.

Competing approaches to strategic management

Two different views—scientific vs. artistic—can shape a company’s approach to the strategic management process. Data-driven business experts tend to favor the scientific approach, with its rigorous evaluation of environmental, competitive, and internal factors. But since data isn't always conclusive and circumstances can change quickly, the scientific approach isn't airtight.

The artistic view accepts that the market changes too quickly to be predictable. Instead of relying on data, this approach applies creativity, experience, and intuition to strategy. But without research and analysis to inform strategic decisions, replicating success can be hard—and learning from mistakes is even harder.

So which direction points the way forward? That's a trick question. As successful companies are learning, a hybrid approach can give you a strategic edge. You can ground decisions in data-driven rigor, while you encourage creative innovation in strategic management practice.

5 steps to cover in your strategic management process

Drafting a smart, data-driven strategy is a good start—but to make an impact, you need a clear plan and the right resources in place. That’s why companies rely on the five-step strategic management process to help them meet and exceed their goals.

Step 1: Set goals.

Define your company’s mission and vision with FigJam’s ready-made template. Highlight the short- and long-term goals that support your mission, involving players from key teams.

Step 2: Run your analysis.

Collect internal and external data to inform your strategy. Try using FigJam’s SWOT analysis template to pinpoint your company’s strengths, weaknesses, opportunities, and threats. To evaluate the external market, fill out a PEST analysis template.

What’s a PEST analysis?

Companies consider many factors in strategic management. These range from legal implications (including current regulations and emerging consumer standards) to environmental outcomes (including sourcing and sustainability). Savvy corporate strategists also run a PEST analysis, examining four external factors that affect business.

Political factors cover taxes and regulations set by the government, as well as trade policies with other countries.
Economic concerns include inflation, interest rates, and the job market.
Social factors focus on demographic and cultural shifts that may change user expectations, consumer behavior, and living standards.
Technological considerations include trends and innovations that may change the way you make, sell, or market your products.

Step 3: Develop your strategy.

Map out how your company will reach its goals. Allocate resources, define key performance indicators (KPIs), and align key stakeholders with FigJam’s strategic planning templates.

Step 4: Execute your strategy.

Managers communicate the plan with their teams, then allocate resources and training to put the plan into action.

Step 5: Monitor your strategy.

Check how effective your strategy is against your KPIs, so you can adjust it as needed. Companies may consider course corrections ranging from broad company restructuring to more focused retraining efforts—or just make minor shifts in roles. If corporate strategy still isn’t hitting targets, you may need to restart the strategic management process with fresh data and new ideas.