Difference Between Strategic Management and Strategic Planning

Dr. Tamer Saeed
Management Professor& Business Consultant

Strategic planning is an element of strategic management, and it is very wrong to think of it as strategic management itself, because strategic management means managing organizational change, managing organizational culture, managing resources, and managing environmental changes at the same time.

While strategic planning is the process of long-term forecasting, forecasting and allocating resources to the future, the difference between strategic management and strategic planning is articulated in a set of elements Strategic planning focuses on the selection and implementation of optimal strategic decisions, while strategic management focuses on the results achieved and included in the chosen strategy especially when it comes to the strategy of selecting new markets, products, or technologies Strategic planning is also represented in the Of the plans, implementation is phased while strategic management is expressed in the form of organizational aspects of the strategy.

Strategic planning also focuses on changes related to the economic and technological activity of an organization. This is different from strategic management in its overall interests. It is concerned with other important variables besides what strategic planning focuses on. Variables related to psychological, social, and political aspects. That is, strategic management focuses mainly on managing the interaction between the components of an organization on the one hand and the environmental variables of these components on the other. It thus attempts to achieve interaction and harmony between the organization and the surrounding environment the present and future of the organization, the various parts of the organization and their activities, the movement of the organization and the goals it has set for its achievement.

The Importance of Strategic Management and Its Objectives

Dr. Tamer Saeed
Management Professor& Business Consultant

The success of some organizations and the failure of others is an economic reality in business. Organizations fail because they do not deal well with the changes in their environment, fail to anticipate them, and fail to provide, allocate, and manage the necessary resources. Therefore, strategic management is important by responding to the challenges facing the organization today and making future decisions through an integrated system that reflects the best options and alternatives available to the organization by implementing the various strategic concepts that enable them to Improve their situation and create new opportunities that help them survive in the industry in which they work.

The importance of strategic management stems from monitoring and evaluating the performance of an organization as an integrated system consisting of an interacting structure of sub functional systems, as well as analyzing the performance of subsystems and the organizational climate and culture, including these areas and systems of strengths and weaknesses.

achieve a better future from the central focus of the present day،strategic management is important to analyze the challenges facing corporate governance represented by the quantitative and qualitative change in the business environment “increased competition, globalization of business Foreign in the domestic market, lack of resources, accelerated technological change, transformation from industrial societies to knowledge societies, instability in market conditions”.

In general, strategic management helps the organization achieve several objectives including articulating a vision for the future Forging strategies to predict environmental changes for the organization and to anticipate future events that will help to deal effectively with them ensuring their chances of survival, continuity and growth; Strengthening the competitive position of the organization by helping it create a competitive advantage to cope with the intensity of competition and a competitive position to survive in the markets; and Effective allocation of resources and capabilities through Long-term plans that make the best use of resources and capabilities significantly strengthen the organization's strengths and address weaknesses for future survival and growth.

Differences Between Efficiency and Effectiveness

Dr. Tamer Saeed
Management Professor& Business Consultant

While efficiency and effectiveness are related, there are important differences between them, we may find some types of institutions that are effective but inefficient. On the contrary, they may have a great deal of efficiency, but they are ineffective. Therefore, it is necessary to discuss the difference between the two concepts, despite this difference, both complement the other in order to reach the best results in the performance of institutions and individuals, so the distinction between efficiency and effectiveness must be clarified and not confused.

The concept of effectiveness is based on the principle Do the Right Things, which are based on clear, objective goals, while the concept of efficiency is based on the principle of Do the things right, used to achieve goals, therefore, the right goals must be built up and properly implemented, So It can be said that, the efficient person is a person who does things in the right way, follows the established order, solves problems faced, and preserves resources. On the other hand, the effective person thinks and does the right thing، creates alternatives and solutions out of the box, focuses on results and maximizes profits.

The Company's Strategic Goals Create Its Own Future

Dr. Tamer Saeed                                                                 

Management Professor& Business Consultant

“Without strategic goals, the organization looks like a ship without rudder"

Strategic Objectives are the goals and ends that the management of an organization seeks to achieve by making optimal use of existing and future human and material resources. It is an objective basis for the process of examining and analyzing, designing and applying a strategy It expresses the organization's intention to move from the current situation to the desired one Objectives define what an organization should do and when it should do. It is agreed by most researchers that objectives derive from the organization's mission, which gives greater importance to mission formulation, attention to its strengths and weaknesses, and a clear understanding of the structure Objectives For goals to have clear meaning, they must have a set of characteristics as following: 

·       Quantitative formulation, meaning that the goals are expressed with clear numerical values, such as raising the efficiency of the enterprise’s production apparatus by 30% from what it is now.

·       Linking to a specific time dimension, meaning specifying the time in which the objectives must be accomplished and the date of completion of their achievement.

·       Achievability: meaning that, the goals must be achievable within the time specified for them, compatible with the current and future capabilities of the institution, and devoid of amounts. 

The goals are often hierarchical, with the most important goals at the top and then the least important ones. Given the multiplicity of partners and groups of individuals in the internal and external environment, economists have focused on a basic idea of the goals: the goals are the result of the interaction of institutions with these partners. Mintzberg has developed a model of institutions that helps shape their goals by shaping their goals through various internal and external influences