Strategic planning and management
Strategic planning and management
Strategic Planning and management is a comprehensive process for determining what a business should be, and detailed each step in reaching the desired goal by maximizing the available resources. Without a well define plan, a company may reach its desired goal but may find itself losing money as its resources were not efficiently allocated.
While senior leadership of the company is generally tasked with determining strategy, a total buy in by staff at all levels of the organization is required for the organization’s success. As Benjamin Franklin once said, “If you fail to plan, you Plan to fail”.
Knowledge Management (Personal Management & Policies and Procedures)
Knowledge management (KM) is the process of creating, sharing, using and managing the knowledge and information of an organization. It refers to a multidisciplinary approach to achieving organizational objectives by making the best use of knowledge
At stratmire we believe that knowledge management efforts typically should typically involve two main areas.
- Hiring, training and retaining key persons, which will improve innovation and create a competitive advantage.
- Documenting and periodically updating best practices, polices and procedures. This will reduce over dependence on key persons and ensure smooth operation despite attribution.
Advantages of a robust knowledge management process, are greater focus on organizational objectives such as improved performance, mitigated operational disruption, innovation and knowledge sharing.
Income maximization and Diversification
Companies are created to provide profit to its stakeholders. The more successful a company is in maximizing its revenue by maximizing all potential streams of revenue (diversification) and ensuring that each revenue stream provides maximum revenue to the company’s bottom line (Maximization), will determine how successful the firm will be in the ever-changing global environment.
Companies that neglect to invest in building multiple revenue or fail to maximize income from its existing revenue stream e.g. a brick and mortar store without an online presence, will find it difficult to compete in todays environment. Most senior management are often too willing to cut cost to increase profitability or to compensate for lagging sales. While this practice may give temporary relief, senior managers must concentrate on building multiple revenue streams or increasing revenue from its long-term existence.
Higher profits enable a firm to pay higher wages, more dividends to shareholders and survive an economic downturn. For example, a company like Amazon which started out selling books, now has diversified its offering to just anything you can name; have often pursued this goal of maximizing market share. It gives a strong position to dominate the market in the future.
Branding and Promotion
Branding is strategic. Promotion is tactical.
The brand is what sticks in the mind of a potential customer’s regarding your company, product or service. The higher your brand is perceived, the better is the company’s potential to charge higher fees resulting in Higher profits, which enables a company to pay higher wages, more dividends to shareholders and survive an economic downturn.
The brand is all inclusive. From the color of the products, the quality of the customer service, the quality of the staff, the reliability of the product etc., all plays a critical role in how the company is perceived. Senior management should ask themselves, “how do we want the world to see us”? and formulate a structure creating a brand. Everyone in an organization is, with their every action, either constructing or deconstructing the brand. Every thought, every action, every policy, every ad, every marketing promotion has the effect of either inspiring or deterring brand loyalty in whomever is exposed to it.
Promotion unearths and activates buyers.
Well-researched and well-executed promotion activity is an investment that pays for itself in sales and brand reinforcement. Promotion refers to any type of communication used to inform or persuade target audiences of the relative merits of a product, service, brand or issue. The aim of promotion is to increase awareness, create interest, generate sales or create brand loyalty.
Financial Management refers to specific planning of the usage and management of a company’s financial resources to attain its objectives as a business concern and return maximum value to stakeholders.
Key elements of strategic financial management include defining a company’s business objectives, identifying and quantifying its resources, devising a plan for utilizing finances and other resources to achieve its goals, and establishing procedures for collecting and analyzing data, making financial decisions, and tracking and analyzing variance between budgeted and actual results to identify problems and take appropriate corrective actions.
Many businesses fail because of poor financial management. From the inability to pay creditors, meet payroll, to the inability to react to changing environment many company get into debt, and eventually are forced to shut business down. With less than half of new business surviving beyond the first five years, the consequences of poor financial management for your business are clear.