How businesses get it wrong in the 4 Basic elements of Strategy Management

Business management means nothing much in the absence of a strategy. The 4 elements of a strategy that enable a business to be successful are simple but depending on who you are can be neglected by most managers or business owners.

1. Environmental scanning

A definition by Wheelen et al (2014) states that environment scanning “is the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation”

Most business get it wrong in strategy planning in the following

Ignoring what is happening around them because they think their businesses are immune
Thinking that their culture is very strong hence no need to look internally
Managers have too much egos which stop them from thinking of their opportunities
Managers are too caught up in power to recognize their business weaknesses
Stuck in tradition not realizing that the times have changed

Also read 10 things every CEO must do to succeed

2. Strategy formulation

With strategy formulation a company can easily set themselves up for failure through the following

Setting standards and goals that are out of touch with reality
Not providing resources for the plans being put in place
Not having the right employees to formulate the strategy
Lack of a policy on what is the guideline for the company strategy

time management — A business that fails to link all strategy elements will eventually fail

3. Strategy implementation

Strategy implementation is a process by which strategies and policies are put into action through the development of programs, budgets, and procedures. Management can get it wrong by

Having the wrong employees implement the strategy
Rushing strategy implementation in impossible times
Budget over runs that are constant
Changing implementation plans suddenly without warning
Not being consistent on who implements the strategy
Failing to release resources in time for procedures and policies
Procedures which lack details
Lack of real leadership in implementing strategic plans

4. Evaluation and control

Evaluation and control is key to ensure that the business is moving in the right direction. In other words evaluation and control is all about performance management. Here are the mistakes companies will make

Lack of a mutual feedback process
One way street from management on performance management
Measuring the wrong performance metrics which are not useful

Getting it wrong in these elements will result in the business failing to achieve its goals. Strategy management not requires creativity but it also requires that management be aware of what they are trying to achieve in a logical way.