Strategic Management Process PDF

III. Project Management Process One of the major aspects of strategic management is to organized various functional A. STRATEGIC MANAGEMENT areas of the organisation effectively, a...

III. Project Management Process One of the major aspects of strategic management is to organized various functional A. STRATEGIC MANAGEMENT areas of the organisation effectively, as well as to assure these functional areas harmonize and get STRATEGY MEANING together well. the way in which business, government, or Companies and organizations in all industries can other organizations carefully plans it's benefit from the practice of strategic management actions over a period of time to improve it's from the following perspectives: position and achieve what it wants. - Cambridge Dictionary Competitive Advantage Strategic management helps companies stay ahead Strategic Management Lamb Robert (1984) of competitors by keeping them aware of market Strategic management is an on-going changes. process that evaluates and controls the business and the industries in which the Achieving Goals company is involved; assesses its Ensures that goals are realistic and achievable by competitors and sets goals and strategies to breaking them down into clear steps and meet all existing and potential competitors; implementing them effectively. and then reassesses each strategy annually or quarterly [i.e., regularly] to determine how it Sustainable Growth has been implemented and whether it has Using strategic management leads to better succeeded or needs replacement by a new performance, which helps a company grow at a strategy to meet changed circumstances, steady and manageable pace. new technology, new competitors, a new economic environment, or a new social, Cohesive Organizations financial, or political environment Strategic management ensures that everyone in the company is working toward the same goal, which Strategic Management can be defined as increases the likelihood of success. PLANNING MONITORING Increased Managerial Awareness ANALYSIS Encourages managers to plan for the future, helping ASSESSMENT them stay aware of industry trends and challenges. of all necessitites that an organization needs MISSION CONCLUSION VISION Strategic management is crucial for organizations GOALS aiming to enhance their position and achieve their PURPOSE long-term objectives. It involves a systematic The process requires a commitment to strategic process of planning, monitoring, and assessing to planning, which is a subset of business management ensure that goals are realistic and achievable while that involves an organization's ability to set adapting to market changes. By aligning the organization’s mission and vision with actionable strategies, strategic management helps companies stay ahead of competitors, achieve sustainable STRATEGY FORMULATION growth, and maintain a cohesive workforce. It also is the process of deciding best course of promotes managerial awareness, allowing leaders to action for accomplishing organizational anticipate future trends and challenges. Lastly, objectives and hence achieving strategic management is a comprehensive approach organizational purpose. After conducting that enables organizations to navigate complexities environment scanning, managers formulate and secure ongoing success in a dynamic corporate, business and functional strategies. environment. 1. CORPORATE determining the overall scope and direction, B. STRATEGIC MANAGEMENT such as whether to pursue growth, stability, PROCESS or retrenchment The strategic management process means 2. Business defining the organization’s strategy. It is also focused on areas like differentiation,cost defined as the process by which managers leadership, or niche targeting. make a choice of a set of strategies for the 3. Functional organization that will enable it to achieve developed to support these higher-level better performance. strategies, detailing specific approaches for departments like marketing, finance, and IMPORTANCE operations The primary purpose of strategic management process is to help the STRATEGY IMPLEMENTATION organization achieve a sustainable strategic Implementation involves putting the competition in the market. formulated strategies into action. Strategy implementation includes designing the THE FIVE STAGES OF THE STRATEGIC organization’s structure, distributing MANAGEMENT PROCESS resources, developing decision making process, and managing human resources. GOAL SETTING STRATEGY EVALUATION This is essentially clarifying the The key strategy evaluation activities are: organization’s vision. The vision will appraising internal and external factors that include short-term and long-term objectives, are the root of present strategies, measuring the processes by which they can be performance, and taking remedial/corrective accomplished, and the persons responsible actions. Making sure that the organizational for implementing each task that culminates strategy as well as it’s implementation meets in the set goals. the organizational objectives. ANALYSIS EXAMPLE Analysis involves gathering the data and Government strategic planning: information that is relevant to accomplishing Objective: To improve public health the set goals. It also covers understanding outcomes in a specific region. the needs of the business in the market and Strategy: Conduct a needs assessment to examining any internal and external data identify health priorities and gaps in service that may affect the organization’s goals delivery. Develop a comprehensive health promotion and disease prevention strategy.  Collaborate with healthcare providers, and effectiveness. This includes all the tools, community organizations, and policymakers processes, and methodologies used to to implement interventions. I achieve the project’s objectives. It involves Implementation: Launch public awareness the systematic approach to planning, campaigns on preventive health measures, executing, and controlling the project’s expand access to healthcare services in scope, schedule, cost, quality, and resources underserved areas, and implement policies to regulate unhealthy behaviors (e.g., EXAMPLE OF TECHNICAL DIMENSION smoking bans, sugar taxes). Barangay Malobago plans to implement a feeding Monitoring and Evaluation: Track key program to address malnutrition among children health indicators (e.g., vaccination rates, aged 2 to 6 years old. The project aims to provide disease prevalence), conduct surveys to nutritious meals to 50 children daily for one month assess public awareness and behavior change, and evaluate the impact of 1. PLANNING interventions on health outcomes. Scope CONCLUSION The project covers the daily feeding of 50 The strategic management process guides a children in Barangay Malobago for 30 days. company by setting clear goals, formulating It includes meal preparation, distribution, effective strategies, and ensuring successful and monitoring of children's health. implementation. Regular evaluation and adjustment Schedule are crucial to address changes and ensure the The feeding program will run from strategy remains aligned with the company’s September 1 to September 30, with meals objectives. This continuous cycle helps served every day at 10:00 AM. organizations adapt, stay competitive, and achieve Cost and Quality long-term success. A budget of PHP 30,000 is allocated, covering food supplies, cooking equipment, C. TECHNICAL AND and other necessary materials.Nutritional SOCIOLOGY-CULTURAL DIMENSIONS standards will be met by consulting with a nutritionist to create a balanced meal plan. Technical & Socio- Cultural Dimensions in Fresh ingredients will be sourced locally. Project Management 2. EXECUTION Understanding both the Technical and Resource Management Socio- Cultural dimensions is crucial for Barangay Health Workers (BHWs), successful project delivery. These two volunteers, and a designated cook. Each dimensions represent the hard and soft team member will have specific roles, such aspects of managing a project, ensuring that as purchasing, cooking, serving, and not only the tangible outcomes are met but monitoring. also the human and organizational elements Procurement Process are addressed. Use local suppliers for fresh vegetables, rice, TECHNICAL DIMENSIONS and protein sources. Weekly inventory This dimension is driven by clear metrics, checks ensure all supplies are available. data, and standards, focusing on efficiency Documentation  Maintain records of food expenses, cleanliness and environmental awareness. attendance of children, and health progress The initiative involves various stakeholders, reports to track the program's effectiveness. including local residents, barangay officials, youth volunteers, and senior citizens. 3. CONTROL Monitoring Community Involvement and Participations Daily attendance will be recorded to ensure The Barangay Captain emphasizes the that all 50 children are consistently importance of inclusivity, encouraging benefiting. Regular feedback from parents residents from all cultural and will help assess the meals' acceptability. socio-economic backgrounds to participate. Quality Assurance To ensure broad participation, the organizers Periodic checks will be conducted to ensure consider the diverse schedules of residents, that the meals meet the required nutritional planning the cleanup on a weekend when standards. Adjustments will be made as most people are available. needed, based on the nutritionist’s Leadership and Communication recommendations. The Barangay Captain and councilors lead Budget Control the initiative, fostering a spirit of unity and The Barangay Treasurer will oversee the cooperation. Clear communication is budget, with weekly financial reports to established through regular meetings and track spending and ensure the project stays announcements via social media, posters, within its financial limits. and word-of-mouth. The leaders ensure that the messaging is respectful and resonates IMPORTANCE TECHNICAL DIMENSIONS with the values of the community, The technical dimension ensures that the encouraging active participation. project stays on track, adheres to quality Cultural Sensitivity standards, and meets the defined The barangay is home to residents with deliverables. It provides the framework and varying traditions and beliefs. For instance, tools needed to manage the complexities of some elderly participants may prefer not to the project and ensures that all tasks are engage in physically demanding tasks. The aligned with the project’s goals. organizers respect these preferences by assigning roles that align with each SOCIO - CULTURAL DIMENSIONS participant’s abilities and comfort level, such This dimension focuses on teamwork, as distributing refreshments or assisting with leadership, stakeholder engagement, and coordination. conflict resolution. It encompasses the Outcome human side of Project Management. It The cleanup drive is successful, with a high involves managing the relationships, turnout and positive feedback from the communication, culture, and organizational community. The event strengthens structure that impact the project. relationships among residents, promotes a cleaner environment, and enhances the sense Example of Socio-Cultural Dimensions of unity within Barangay Malobago. The Barangay Malobago decides to organize a socio-cultural dimension, through effective community cleanup drive to promote communication, cultural sensitivity, and  community collaboration, plays a crucial involving health, education and defense fall role in the success of the initiative. in this category. IMPORTANCE SOCIO-CULTURAL SECTIONAL PROJECTS DIMENSIONS Here the classification is based on various sectors The socio-cultural dimension is vital for like: maintaining a motivated and cohesive team. Agriculture and Allied Sector It helps in managing stakeholder Irrigation and Power Sector expectations, navigating organizational Industry and Mining Sector politics, and fostering a positive project Transport and Communication Sector culture. Without strong socio- cultural Information Technology Sector management, even technically sound Social Service Sector projects can fail due to poor communication, Miscellaneous low morale, or misaligned goals. This system of classification has been found useful CONCLUSION in resource allocation at macro level. Balancing these dimensions helps in achieving project goals and ensuring overall success, as TECHNO-ECONOMIC PROJECTS technical skills alone are insufficient without strong This type of classification refers to interpersonal and organizational management. categorizing projects based on a combined assessment of their technical feasibility and economic viability. D. CLASSIFICATION OF PROJECTS (a) Factor Intensity-oriented classification Projects may be classified as capital- PROJECT CLASSIFICATION intensive or labor-intensive depending upon Project classification helps in expressing and whether a large-scale investment in plant highlighting the essential features of project. and machinery or human resources is Projects should be classified early during involved. project ideation and confirmed when (b) Causation-oriented classification preparing the Project Charter. This will Projects can be classified as demand based allow you to determine which PM process to and raw material based projects. The follow, to ensure the project is managed with availability of certain raw materials, skills or the most effective approach. other inputs makes the project raw-material based and the very existence of demand for QUANTIFIABLE PROJECTS certain goods or services make the project Quantifiable projects are those in which demand-based. possible quantitative assessment of benefits (c) Magnitude-oriented classification can be made. Projects concerned with This is based on the size of investment industrial development, power generation, involved in the projects, accordingly project mineral development fall in this category. are classified into large scale, medium-scale NON-QUANTIFIABLE PROJECTS or small-scale projects. Non-quantifiable projects are those where such assessment is not possible. Projects FINANCIAL INSTITUTIONS Stages In Project Screening Process CLASSIFICATION 1. Identify Criteria for Evaluation Establish criteria to evaluate and compare Financial Institutions classify the projects as: projects. (a) Profit-Oriented Projects Criteria might include strategic alignment, New Projects ROI, resource needs, risk, and feasibility. Expansion Projects Ensure criteria reflect organizational goals Modernization Projects and priorities. Diversification Projects (b)Service-Oriented Projects 2. Gather and Document Project Proposals Welfare Projects Collect detailed information on each project Service Project proposal. Research and Development Projects Include objectives, scope, outcomes, Educational Projects timelines, costs, resources, and risks. Documentation ensures consistent and TO CONCLUDE... thorough evaluation. Project classification is crucial in effective project management as it enables better planning, resource 3. Preliminary Screening allocation, risk management, communication, and Perform an initial review to filter out decision-making. By classifying projects accurately, non-viable projects. project managers can ensure that projects are Focus on proposals that meet basic managed efficiently and successfully. requirements and align with strategic objectives. E. PROJECT SCREENING PROCESS Quickly eliminate unfit projects, saving time and resources. What is Project Screening Process Project screening is the process of 4. Conduct a Detailed Evaluation evaluating and comparing different projects Evaluate projects against established criteria or proposals to determine which ones should in detail. be considered for further development or Use tools like weighted scoring models or investment. SWOT analysis. Assess factors like cost-benefit, risk, What is the Importance of Project Screening alignment with goals and resource needs. Process Resource Optimization 5. Prioritize Projects Strategic Alignment Rank projects based on evaluation scores. Risk Management Determine which projects offer the greatest Stakeholder's Satisfaction value and align with priorities. Prioritization Focus on projects that score highest. 6. Review Resource Availability Assess availability of financial, human, and technical resources.  Ensure the organization has the capacity to make informed decisions that maximize the chances undertake selected projects. of success. Avoid overcommitting resources. F. PROJECT PROPOSAL 7. Risk Assessment Conduct a thorough risk assessment for each A project proposal is a written document project. outlining everything stakeholders should Identify potential obstacles and assess their know about a project, including the timeline, impact. budget, objectives, and goals. Your project Reassess or reject projects with proposal should summarize your project unmanageable risks. details and sell your idea so stakeholders feel inclined to get involved in the initiative. 8. Decision-Making and Selection A project proposal’s purpose is to Make final decisions on which projects to communicate how a company, team, or approve. individual plan to approach a project. Present recommendations to senior management or stakeholders. Key Elements in a Project Proposal Select projects that align with strategic goals Project Background: What problems, and resource capabilities. challenges, or opportunities exist that create a need for this project? 9. Feedback and Review Objectives: What are the intended outcomes Gather feedback on the screening process. of this project? Identify areas for improvement in future Project Scope: What are the steps or stages screenings. of the project? What elements are included Ensure continuous improvement in in this project? How will the objectives be decision-making. reached through this project? 10. Documentation and Communication Types of Project Proposals Document final decisions and the rationale Solicited: You’ll send solicited proposals in behind them. response to a Request for Proposal (RFP). Communicate outcomes to all relevant An RFP announces a project in detail and stakeholders. asks for bids from qualified teams. Ensure clarity and transparency in project Unsolicited: You’ll send unsolicited selection. proposals without an RFP, meaning no one CONCLUSION asked for your proposal. In conclusion, the project screening process is a Informal: You may have a client send you critical step in ensuring that an organization focuses an informal request for a project proposal, in its resources on the most promising and which case you can respond with your strategically aligned projects. By systematically project pitch. Because this isn’t an official evaluating and comparing projects through clearly RFP, the rules are less concrete. defined criteria, gathering detailed information, Renewal: You’ll send renewals to existing conducting thorough evaluations, and assessing clients in hopes that they’ll extend their risks and resource availability, organizations can services with your organization.  Continuation: You’ll send continuations as the decision-maker can also see what aspects a reminder to a stakeholder letting them of service may differ to create the difference know the project is beginning. in price. This detailed information helps Supplemental: Similar to a continuation decision-makers make more informed and proposal, you’ll send a supplemental objective vendor decisions. proposal to a stakeholder already involved in Project Understanding - A project your project. In this type of proposal, you’re proposal outlines the purpose and scope of a letting the stakeholder know the project is project. It ensures both parties agree about beginning, while also asking for additional what the project itself will include. It states resources. to the decision-maker or stakeholder that the service provider understands the scope of How to write a Project Proposal the project. Establish Credibility - It communicates to 1. Write an Executive Summary - Serves as the the decision- maker or stakeholder that the introduction to your project proposal, this section service provider is capable of completing the should summarize what’s coming and persuade the project and fulfilling expectations. stakeholder to continue reading. Propose an Estimated Timeline & Budget - A project proposal also proposes a timeline 2. Explain the project background - Here you will and budget for the project. talk about the problem your project aims to solve Set Expectations- Sets expectations for the and information known about the problem. client relationship. This includes having a mutual understanding of deliverables, 3. Present a solution - Discuss what the project is timelines, and budget. set out to accomplish and how it addresses the Inform Project Planning - Once the project problem. is approved, this document will be used to finalize timelines and budget for the contract 4. Define project deliverables and goals - Clearly as well as to complete resource scheduling. define what the project’s end goals and timetable. Conclusion 5. List what resources you need - This is where The Project Proposal is a tool used to deliver a information like the budget breakdown and the cohesive project plan and to educate potential allocation of costs must be placed. investors or partners about the reasoning behind the project, its purpose, and its importance. Its value in 6. State your conclusion - The conclusion should making sure that both parties understanding of all briefly summarize the problem your project segments of the program ensures transparency addresses and your solution for solving that between groups before, during and after the project. problem. And most importantly allows individuals or groups to effectively present their ideas while also letting Why is a Project Proposal Important? investors properly make decisions that are the best Improved Vendor Comparison - With a for them. project proposal, decision-makers can compare prices, processes, and projected outcomes. If there are price differentiations,