For any business to succeed, it is important to constantly evaluate, assess and adapt. A strategic management model can help a business achieve this in a measured and quantifiable manner.
A strategic management model can help you take stock of your present environment and plan smartly for the future.
There are a host of time-tested models that have helped millions of businesses large and small:
Transform their organizational structures
Improve their operations efficiency
Increase their market share and profitability
Let’s look more closely at how a strategic management model can help your small business grow and thrive. Keep reading for a list of five popular models.
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How to create and apply a strategic management model
To select and use an appropriate strategic management model, entrepreneurs or business leaders will need to work through these six elements.
1. Creating a mission statement
A mission statement clearly defines the core objective of the business:
What the business does
Who it serves
How it serve its customers, community and other shareholders
Having a clear mission statement makes it easier to communicate the business purpose to customers, employees and investors.
It will help you weave your values across everything your business does and keep it true to its goals.
Here is Tesla’s mission statement for example:
“To accelerate the world’s transition to sustainable energy.”
Notice the use of the word “accelerate,” a word commonly used with vehicles, and how the statement suggests the end goal is to improve the world (not just sell cars).
A well-written mission statement like this can be used to guide all business decisions.
2. Defining business goals
Clear and measurable milestones help businesses achieve their intended mission. You’ll want to create a blueprint of:
How the goals are to be achieved
How long it could take
What resources are required, etc.
The objectives serve as the basis for creating policy and gauging performance to ensure that the business is moving in the right direction.
3. Assessing the business environment
