Strategic Planning in the Small Business

Unit

1

HO 1-5 (continued)

14
Part I The Concepts and
Techniques of Strategic
Management

WHY STRATEGIC
MANAGEMENT
IS AN
ONGOING PROCESS

Because

each one of the

five tasks of strategic

management require'.

constant

evaluation and a decision

whether to continue

with things as they

are or to make

changes, tire process

of managing strategy

is ongoing-nothing

is final and all

prior actions are

subject to modification.

Strategic management

is .proce,, filled

with

constant motion.

Changes in the organization's

situation,

eithei from the

inside o, outside

or both, constantly

drive strategic

adjustments This is

why

Figure i-I is explicit

about recycling to

any of the task, a,,

needed.

The

task of evaluating performance

and initiating

corrective adjustments

is

both the end

and the beginning of

the strategic management

cycle. The march

of

external

and internal events

guarantees that

revisions in the four

previous compo­

nents will

be needed sooner or

later. It is airways incumbent

on management

to

push for better

performance-to

find ways to improve

the existing strategy

and

how it is being

executed. Changing

external conditions

add further impetus

:o the

need for periodic

revisions in a company's

mission, performance

objectives.

strategy, and approaches

to strategy

execution. Most of the

time. the adjustment,,

involve fine-tuning,

but occasions for

a quantum strategic reorientation

do arise­

sometimes prompted

by significant

external developments

and sometime, b%

sharply

sliding financial performance

Strategy managers

must stay close

enuUgh

to the situation

to detect when changing

conditions require

a strategic response

and when they

don't. It is their job

to read the winds

of change. recognize

significant

changes early, and

capitalize on events

as the. unfold.

2

Characteristics

of the Process

While developing

a mission, setting

objectives, forming

a strategy, implementing

and executing the

strategic plan. and evaluating

performance

form the elements of

managing

strategy, actually

performing the

tasks is not so cleanly

divided and

neatly sequenced.

There is much

interplay among the

five tasks. For example.

considering

what strategic actions

to take raises issues

about whether and

how the

strategy can be satisfactorily

implemented.

Deciding on a company

mission in­

volves setting objectives

for the organization

to achieve (both

involve directional

priorities). Establishing

challenging

but achievable objectives

must take

into

account both current

performance and the

strategy options available

for improv­

ing performance.

Deciding

on a strategy is entangled

with decisions

about long­

term

direction and whether

objectives have been

set too high or too

low.

Second, the five strategic

management

tasks are not done in

isolation. They

are carried out

in the midst of all other

managerial responsibilities-supervision

of

day-to-day

operations, dealing with

unexpected crises,

going to meetings, prepar­

ing reports,

handling people

problems, and taking

on special assignments

and

civic

duties. Thus, while

the job of managing

strategy is the most

important

2 Mintzberg,

"Crafting Strategy," p.

74.

89