Beyond the Basics: Developing Strategic Management Skills
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Increasingly complex business challenges require organizations to sharpen their strategy management systems, not merely for survival but for sustained success and growth. Setting objectives, examining the competitive landscape, scrutinizing internal organizational aspects, assessing strategies, and ensuring their systematic implementation are integral components of strategic management.
This points out that professionals aspiring to excel in strategic management must cultivate a diverse set of skills and competencies, but are these enough? In an interview with Performance Magazine, Dana AlSaaïd, the Director of Corporate Performance Management for the Ministry of Economy and Planning in Saudi Arabia, emphasizes that analytical thinking and foresight competencies are critical to gaining a competitive advantage in the field. She also believes that professionals must possess a deep understanding of their industry and its operations to anticipate trends, identify opportunities, and make informed decisions.
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However, excellence in strategy should not be confined to a single individual. It can manifest through collaborative efforts and diverse perspectives. Dr. Marc Sniukas, a strategy advisor and leadership coach, said in his interview with Performance Magazine, “Strategy is about collective sense-making, forming a shared view of what is going on, what is needed as a response, and how the organization will do that.”
Hence, having a heightened awareness of the organization’s strategy at the individual level is important. As indicated in The KPI Institute’s State of Strategy Management Practice – Global Report 2023, strategy awareness ensures that all stakeholders comprehend the strategic direction, objectives, and initiatives. It empowers employees, team leaders, and managers to “align their actions and decisions with the organization’s strategic goals,” per the report.
Reality presents a different picture. The report indicates that although 44% of participants agreed with the effectiveness of strategic planning practices, a significant segment (17%) still perceived disconnection from business needs. Findings also reveal that executives exhibit the highest level of strategy awareness at 40%, with middle management following at 16%, and lower management and employees each registering at 7%.
Another essential factor in building a shared understanding is effective strategy communication. According to the report, even if a notable percentage of organizations (31%) aspire to communicate the strategy to all levels, a smaller portion (28%) regards strategy communication as primarily focused on decision-makers only.
Leaders must also strive to develop an internal culture that recognizes the value of competence in strategy management. Jeroen Kraaijenbrink, cofounder of Strategy.Inc, stresses the importance of internalizing strategy within an organization rather than outsourcing it to consultants. He argues that organizations should make strategy an integral, systematic, and routinary business process.
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Where should professionals looking to expand their skills start? One important move is gaining insight into the business environment and the current capabilities of one’s organization in strategy management to identify the areas that require additional learning. For instance, the report above reveals that a significant number of professionals rate their capabilities in managing key performance indicators (KPI), especially in the selection process, at the lowest level. With this, the report recommends investing in skills development and acquiring knowledge related to KPI selection, a process that ensures the accurate tracking of strategic objectives to build alignment between measurement and strategy.
Just as strategy adapts to disruptive times, individuals striving for success must also evolve. However, this evolution should not be arbitrary. Professionals must direct their efforts strategically to achieve meaningful skill expansion.
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Editor’s Note: This was originally published in Performance Magazine Issue No. 29, 2024 – Strategy Management Edition.
Tags: company culture, Strategic Management, Strategy Management
