There are differences and distinctions – critical ones – between strategic planning and strategic management. They are not the same and those leaders and managers who do not respect the differences and do not implement strategic management, are destined to fail.

The planning activity is a discrete part of overall strategic management. Therefore, planning is a part or a subset – albeit an important one- of the entire process and scope of management.

Strategic management is the planning, making finite decisions for continuing or changing certain of the firm’s activities; implementation and execution of those plans . . . all of this defining the long-run direction and determining the long-run performance of a corporation.

You should think of the planning phase as only a part of a comprehensive set of activities which drive the corporation today and tomorrow. These activities include, of course, planning and analysis, but proceed to the establishment of high level, more abstract objectives; the setting of measurable goals; implementation and execution of plans; measurement; ongoing and period assessment; and course alteration. All of this is wrapped in a set of understandings about the relation of time to those required activities and the relative importance and urgency of what the corporation as an entity intends to do . . . intends to accomplish.

Ultimately, the cumulative collective and comprehensive activities of a firm, company or corporation should deliver value to various “constituencies” . . . the most important of these in the end being the shareholder.

This entry was posted 1 year ago on Sunday, February 20th, 2011 at 10:13 am and is filed under Uncategorized.

Comments are closed.