Strategic Planning in the Small Business

Unit 1 HO 1-5 (contiuerl)

Chapter 1 The Strategic Manage'nent Process 19

they don't have authority for directin& implementation) and (2) what they recom­

mend won't be well accep-ed or enthusiasticall.%implemented by those who "have

to sing thr song the planners have written." But when managers are expected to

be the chief strategy-makers and strategy-implementers for the areas they head. it

is their own strategy and their own implementation approach that are being put to

the

test of workahilty. rhe "buy in" to their own s!rategy and implementation

efforts is certainl. stronger than it is for someone

ele's efforts Hence the. are

likely to be more committed to making the plan ork (their future careers with the

organization are at more risk'). an,' they can be held strictl. accountable for

achieving the target results in their area.

The Strategic Role of the Board of Directors

With senior and middle managers having lead resp,,nsibilitv for crafting and

implementing strategy, the chief strategic role of an organization's board of

directors is to see that the ovei all tak of managing strategy is adequately done.'

Boards of directors normally review important strategic mo~e,, and approve

strategic plans-a procedure that makes the board ultimately responsible for the

strategic actions taken But directors rarel\ can or should pla% a direct role in

formulating the strateg. they must approve The immediate task of directors in

ratify ing strategy and ne\A direction-setting moues is to ensure that the proposal,

presented to them have been adequatel, anal\zcd and thought through and that

the proposed strategy isl superior to available alternatives: flamed proposal-, are

customarily withdrawn for revision by management " The longer-range task of

directors is to evaluate the caliber of ,,nloi manaLers' sirategv-making and

strategy-implementing skills Here it is nece,,ar\ to determine kkhether the cur­

rent CEO is doing a good job of strategic management (as a basis for awarding

salary increases and bonuses and deciding on retention or removal and, also. to

evaluate the strategic skills of other senior e\ecutives in line to ,ucceed the

current CEO.

rHE BENEFITS OF A "STRATEGIC APPROACH" TO MANAGING

The message of thi, book is that doing a good job of managing inherently requires

doing a good job of strategic management. Today's managers have to think

strategically about their company's position and about the impact

of changing

conditions. They have to monitor the external situation closely enough to know

rihen to institute strategy change. They have to know the business ,vell enough to

know what kind of strategic changes to initiate. Simply said. the fundamentals of

strategic management need to drive the

whole approach to managing organiza-

Kenneth R Andrew%. Thw (om ept fit Crpnoii, Stra,,teg%. ,rd ed. (Honme ood. It.: Richard

D.

Irw,,n. 1987). p. 123.

h Ibid.

94