Why Strategic Decision-Making is Crucial to the Success of Your Business

If you are like most typical business executives, strategy planning still happens once a year.  It is the time when we examine our corporate budgets against planned expenditures.  This is typically the time when we determine how successful or unsuccessful we have been to stave off our competitors.  Yet most of us recognize the need to monitor and adjust more frequently than once a year.  So why are some businesses still examining strategy on an annual basis or more importantly not at all?

Perhaps planning happens infrequently because it is just a way to check the box.  So how about turning the prism and forget about formal strategic planning and incorporate a process that will allow for strategic decision making that is flexible, dynamic and responsive to the changes in the environment. One of the best ways to implement the strategic decision making process is to incorporate your senior managers opinions and views on what is happening in the environment.  Senior managers are constantly scanning the environment, monitoring changes, and examining.  For those managers that don’t do those things replace them immediately.  They suck up resources and at best apply a marginal approach to strategy development.

Understanding new trends and offerings are key to growth and provide ways to assist in identifying and recognizing new opportunities for innovation.  Follow this up with analyzing how the changes in the environment could or will potentially impact your industry.  Identifying what the biggest risk is and ways to mitigate the risk are paramount.  These are the basic keys to weaving a dynamic approach to strategic decision-making.  Finally, take the necessary steps to make internal changes in offerings, designs, and understanding your customer and craft your plan of attack and determine where you need to be in this new world order.  Your key to success is being agile about your approach to strategic decision-making and management.  This is a great time for businesses to compete and how you approach strategic decision-making can make all the difference in your firms ability to grow.

Cheers

Follow me on Twitter @reneetsanders

Renee Sanders is a PhD candidate in business at Capella University, where her specialization is strategy and innovation. Renee holds an BBA and MBA from the University of Maryland University College. Renee currently works in for a defense contractor as the Director of Strategic Pricing and Price to Win.

Leave a Reply

Social Media Auto Publish Powered By : XYZScripts.com