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Why Strategic Management?

Strategic management is not a task, but a rather a set of managerial skills that should be used throughout the organization, in a wide variety of functions.

Strategic cross-functional management is central to capitalizing on functional excellence, and in order for functional specialists to make the greatest possible contribution, they must take a broader view of their functions and understand how they fit into the web of the organizational processes and, ultimately, into the overall strategy.

New Systemic Approach to Strategic Management

Various narrow strategy schools, often fighting between themselves, favor different single-sided approaches to strategy formulation. They represent both different approaches to strategy formulation and different parts of the same process. Today's managers have to deal with the entire business systems, however, - as opposed to dealing with its different parts independently - not only to keep strategy formulation as a vital force but also to impart real energy to the strategic process. They must practice balanced results-based leadership strategies and apply a balanced approach to business systems.

Certain positive moves in this direction have been seen recently. Some of the more recent approaches to strategy formulation take a wider perspective and cut across the narrow strategy schools in eclectic and interesting ways, for example Learning and Design in the "Dynamic Capabilities" approach, or the “Dynamic Strategy" one based on knowledge working.

The currently dominant view of business strategy – resource-based theory - is based on the concept of economic rent and the view of the company as a collection of capabilities. This view of strategy has a coherence and integrative role that places it well ahead of other mechanisms of strategic decision making.