What are the tools used in strategic management?
Business text books are rammed full of different strategy tools, models and frameworks to help you do some analysis and get the insight you need to work out what to do to grow your business. But there are hundreds of them! Where on earth should you start, and what do they all do? Show In the second in our Strategy Tools series, we’re looking at the tools and models that will help you understand all of the different strategic options that are available to you. After all, how can you decide which strategy is best for your business if you don’t know what each possible strategic direction could be? The 7 Stages of Strategic PlanningIn order to get a grasp of all these strategy tools and work out which ones will help you get the answers you need, it’s helpful to look at them in the context of the overall process of devising a strategy plan. So, we’ve broken the process down into 7 clear steps and then listed the specific strategy tools that can help you at each stage. In the first of our definitive lists of Strategy Tools, we looked at the frameworks, tools and models that constitute the best starting place in terms of your strategic planning. Those were the tools that help you to understand the wider external environment, your own market and competitors, and finally examine and assess the strengths and weaknesses of your own business (stages 1 – 3 of the process). So, if you haven’t done any of that work, take a quick look at our Best Strategy Tools to Analyze Your Market & Business before we move onto the next stage of your strategy planning. So, let’s look at stages 4 and 5 of your strategic planning work – to understand the different options there are for setting a strategy and direction for your business, and then to evaluate them and make some decisions. We’ve said it before, but getting as many people together as possible and working through these tools as a team always gives the best results. If you have a range of different people in the group, with different experiences, skills and outlooks, you’re bound to capture a lot more insight and ideas. Using the tools in a workshop environment does help to bring them to life for people and make the process enjoyable. It’s crucial that you come away from the distractions of the daily to-do list and enable everyone to focus on the bigger picture. Traditionally teams use flip charts and whiteboards to do these tools in a workshop environment, but certainly here at Lucidity we think you can you can do better than that! In our software you’ll find a whole suite of interactive strategy tools that you work through step-by-step. You can do these altogether on screen meaning you can have a great workshop session whether you’re altogether in a room or joining remotely. Using the strategy tools in Lucidity also means everything is effortlessly saved and kept together in one easily accessible central home. You’ll also get great looking visuals of each tool you complete, ready to download and share with the wider business. Find out more about the Interactive Strategy Tools in Lucidity Armed with a solid understanding of the environment you’re operating in, the competitive landscape and your own strengths and weaknesses as a business (having worked through these tools), it’s time to think about the different strategic options and positions you could take. Here are our favourite tools for the job. Ansoff Matrix Value Disciplines Model Bowman’s Strategy Clock Porter’s Generic Strategies Grand Strategy Matrix Miles & Snow Organizational Strategies GE Matrix TOWS SFA Matrix There are a number of tools that are specifically concerned with choosing the right path when diversifying your business. Here are some of our favourites. The Ansoff Matrix….again CAGE Distance Framework Porter’s Three Tests Now What?Whichever tool or tools you’ve chosen from this list, you should come away with a solid understanding of the different strategic options and be able to make a strong decision on which is most suited to your business and ambitions. Now you’re ready to turn that insight and decision into a plan of action. Look out for our next list of recommended tools to help you structure and communicate a strategy plan– it’s coming soon! What are strategic management tools?Strategic management planning tools, or simply s_trategic management tools_, include such instruments as a SWOT analysis and a PESTEL analysis. Businesses use strategic management planning tools to determine exactly where their organization is going during the next few years and beyond and how to get there.
Why are strategic management tools important?The advantages of these tools include: increased awareness of the business environment, strategic issues, opportunities and threats which help to reduce the risks involved in making important decisions, prioritization of complex companies and providing a framework for assessing the relative importance of various ...
Which tool is used for strategic planning?There are several tools that could be involved while conducting strategic planning. The most commonly used tools are: Visioning, Metrics or charts, SWOT analysis, Pestle analysis, Affinity diagrams, Portfolio analysis and Interrelationship digraph.
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