Due to specific disadvantages (e.g. over-formalized-process, lack of co-operation between HQ/planners and business units) the concept of strategic planning was advanced to another more comprehensive concept in the 1980s. The comprehensive concept is called “strategic management”. In comparison to the logic-rational elements of strategic planning the following additional elements are considered within strategic management:
- A corporate vision is developed and introduced to the mission statement.
- Companywide, external orientated strategic thinking is promoted.
- Managers, who are responsible for strategy execution and implementation, participate in strategy formulation.
Organizational skills that are essential for formulation and implementation (e.g. organizational structure, functional skills), will be developed.
- Corporate culture will be influenced to ensure its alignment with the corporate strategy.
- Organization will establish a scope for development to enable emergent strategies and to support the management team to pick those strategies out as a central theme.
- To support the transformation process a systematic change management will be used.
- To implement and to monitor strategy systematic tools and instruments (e.g. balanced scorecard) will be employed.
Based on serveral improvements both in theory and practice we can evaluate that strategic management is a generally accepted concept, which is vital for many companies.