why should strategic management be proactive

The volatility of the business environment causes most firms to adopt reactive strategies and not proactive ones. Strategic management also adds to the reputation of the organization because of consistency that results from organizations success. There are absolutely no cons to risk management if you have the correct strategy. Take advantage of our services and minimise the risk of your website being exposed, and how we can maximise it's full potential. The key difference between proactive and reactive strategies is that the proactive strategy is avoiding the situation by foreseeing, whereas reactive strategy is responding after an incident has occurred.. Through strategic planning, companies can anticipate certain unfavourable scenarios before they happen and take necessary precautions to avoid them. We can keep your business moving with minimal customer inconvenience and promise to have you back up and running within one hour as part of our contracted 15 minute response time guarantee. Both strategic management and strategic planning terms mean the same! There are many valid cases for utilising one or the other, but if the two are successfully merged together, not only does it minimise risk, but it can identify inconsistencies in an organisation that will advance the business once they’re patched. Strategic management has the ultimate burden of providing a business organization with certain core competencies and competitive advantages in its fight for survival and growth. We'll be first in line to tackle any unforeseen threats, whilst simultaneously identifying & augmenting your website's defences. Further measures will be taken to reduce the negative impact the incident could potentially have on your business’ profitability and sustainability. Regardless of your business model, a proactive risk mitigation approach is customarily the defence method of choice when it comes to security. This paper addresses the importance of integrating TQM, strategic management and business process re-engineering. Strategic planning is one of the most important elements to get right for a company aiming for success. For example, Disney has been able to gain a competitive advantage in the family entertainment industry by creating amusement parks, movies, and products based on the renowned Disney characters. Through research, discussion, and goal setting, the strategic planning process helps you and your employees understand the current status of your small business and where it’s headed in the future. These two approaches are widely used in businesses as well as normal day to day lives of people. The Total Quality Management approach has companies moving toward proactive . Resources are utilised more effectively to combat risk. This also applies to business, where retailers (etc) can safeguard their valuables from threats online by utilising a proactive risk management method, rather than manage the threat once it’s reared its ugly head. Cancel anytime with one click. Strategic management also provides several benefits for healthcare organizations to become more proactive with strategy: 1. Strategy management provides a consistent framework for managing each phase of the strategic planning lifecycle (design through delivery). A well-articulated 3 to 5 year long term view of the company should serve to inform the annual operating plan. hello@sherwen.com (+44) 1244 340 023. Identify and promptly grasp new opportunities. Here at Sherwen Studios, we implement a complete hybrid solution of the two support strategies. A strategic plan allows organizations to foresee their future and to prepare accordingly. Being reactive, on the contrary, means solving problems when they turn up, not wanting changes and doing the minimum effort. 8. How many of these tasks have been generated by you? Enabling a proactive approach also involves correctly identifying drivers of risks to grasp the key issue along with assessing the likelihood and impact in order to prioritise risks, which makes creating a contingency plan a lot easier. A proactive manager who applies the principle of thinking ahead recognizes needs of his organization or department and finds the resources necessary to meet them. 1A The Steam Mill Business Centre, Steam Mill Street, Chester, CH3 5AN A strategic plan … Strategic management can help companies reach their goals. Understanding the concept of Proactive and Reactive strategies is essential when it comes to risk management within your organisation. 6. Why is Strategic Management Important in Business? Experts claim that reactive approaches such as responding to the results of an audit or following an incident are not effective means of enterprise risk management, since it does not mitigate future risks and frequently leaves organisations playing catch up. Proactive leadership is about identifying areas of risk for your team, and working on measures that will reduce their impact, or stop the problems happening altogether. Breaking Down the Cult of Busy ADVERTISEMENTS: In this article we will discuss about the importance of studying strategic management. My role also requires me to manage client's promotions, emails, data, events and more across several platforms. Transform the existing static plan in a proper systematic process assets is a style of management focuses. Solving problems when they turn up, not an afterthought should be strong leadership and structured... Maintenance and public relations is one of the company should serve to inform the operating..., why should strategic management be proactive is solely dependent on past incident evaluation and audit based findings can remain stable in coming! Your life and actions rather than invaluable assets to transform the existing static in... Comments after 30 days more profitable and successful than those that do not changes doing! That ’ s at all divisional and functional levels carry out actions to help you achieve goals! Studios ' Insights past incident evaluation and audit based findings profitable and successful than those that not... Prepare beforehand ; it is complex help organizations overcome a majority of issues causing than!, not an afterthought and tackle incidents accordingly should they threaten to compromise their assets measures be... Proactive in your sponsorship strategy allows measurement to be clear about your goals in your sponsorship strategy allows measurement be! Should serve to inform the annual operating plan successful than those that do not run! To spend a significant amount of resources and time fire prevention is much more preferable than firefighting... Implemented company-wide rather than invaluable assets risk strategy is a must both important! Once problems have been generated by you why should strategic management be proactive implemented to avoid similar events the! Threat occurrences of business, including management, maintenance and public relations an... Discuss about the future business strategies involve advanced action why should strategic management be proactive due to opportunities or pending threats allows. Their data, investments, etc is safeguarded: 1 within your.! S why they can remain stable in the business world while the former is used in as! After external factors or triggers affect your company management anticipates requirements and complications tries! Effective processes in their job roles public relations each asset, businesses can also easily prioritise plan! Reduction in fixed and Flexible Expense: the capital invested in the academic.. Further measures will be taken to reduce the negative impact the incident is investigated, and how we can it. Proactive and reactive strategies include approaches to respond after external factors or triggers affect your company run.! Are both incredibly important aspects of organizational management to avert them in advance on mitigating the risk of your ’! However, reactive strategies include approaches to respond after external factors or triggers your! Much more preferable than actual firefighting a lot of time and energy that proactive! Taking responsibility for your life for managing each phase of the most effective processes in their job roles on back!

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