Introduction.
It is internationally recognized among academics and businessmen that strategic management has been the most accepted form of management in the 21st century. The studies and presentations made in book and article publications have been diverse, receiving special attention to their enrichment, theoretical improvement and practical execution.
The literature on this subject has focused, fundamentally, on presenting the most relevant results achieved by the so-called “world-class” companies with the empirical application of various management techniques, bringing these practices to the literature as theoretical discoveries. The vanguard in this regard is held by professors from the business school of the United States Harvard Business School, the Boston Consulting Group and the Massachusetts Institute of Technology.
In the almost 60 years of practicing the strategic management of the world's business systems, he accumulates an extensive but very dispersed conceptual base, since there are multiple trends and approaches, without there being an approach that is recognized, by most of the researchers, as the essence of strategic management.
In this section a different study on the strategic direction is presented; In it, an analysis is made of the main definitions of the strategy concept and the most widely used models, which allowed defining the strategic management construct, its dimensions and the necessary skills that strategists must possess for effective execution in each dimension.
Questions for reflection
- What is the greatest complexity of strategic management? What are the dimensions of the strategic management construct? What are the variables that define each dimension? What characteristics or competencies must be manifested in the performance of a manager to effectively execute each dimension? of the strategic direction construct? Do you consider that the strategic direction is:
- Management philosophy Management technique Conduct to conduct a process
The construct strategic direction from the perspective of the terms used in the definition.
For the analysis of the strategic direction construct, from the perspective of the terms used by the authors in the definition, 36 variants of the strategy concept used between the years 1962 to 2004 were obtained, inclusive; For the selection of the definitions, the most cited authors on the subject were used as criteria.
Subsequently, the key terms of each definition were taken, constructing a data matrix taking the authors as observation units and the key terms of each definition as variables. Dichotomous variables were used in relation to the presence or absence of each term, assigning binary values 0 indicates absence and 1 presence of the variable.
Once the data matrix was built, a Cluster analysis was performed using the statistical package STASTISTICA version 6.0, which allowed defining the essential terms that characterize each dimension of the strategic management construct. See table 1.
Table 1. The dimensions of the strategic management construct based on the terms used in the definitions.
| CONSTRUCT STRATEGIC MANAGEMENT | |
| DIMENSIONS | Future |
| Environment | |
| Business | |
| Competition | |
| goals | |
| TACTIC | Skill |
| Lead | |
| Art | |
| Knowledge | |
| Decisions | |
| OPERATIONAL | Process |
| Plan | |
| Coherence | |
| Lines of action |
As can be seen in Table 1, the strategic dimension is characterized by the terms future, environment, company, competition and objectives. This could be interpreted as the essence of this dimension is to guarantee the harmony of the company with its environment for the successful fulfillment of the objectives and to win the competition guaranteeing proactivity and thus avoiding the impacts while maintaining an adequate vision of the future. Due to the elements observed in this dimension, it is closely related to the law of the organization's interaction with the environment (see Chapter II).
The tactical dimension is characterized by the terms skill, directing, art, knowledge and decisions, which can be interpreted as the essence of this dimension is the skill that the strategist must possess in the adequate decision-making to maintain the focus of attention and achieve the harmony of the strategy. In the case of this dimension, it is closer to the second law, that is, the necessary correspondence between strategic thinking, attitude and intention (see Chapter II).
The operational dimension is characterized by the terms process, coherence, plan and lines of action, which could be interpreted as the process carried out by the strategist to maintain the coherence of the strategic lines of action based on the strategic direction of the company.
The strategic management construct from the perspective of the variables used by the strategic management models.
Cluster of the variables used by the models.
To perform the analysis of the models based on the variables, the Cluster method was used by the STATISTICA version 6.0 statistical package, considering a binary measure and calculating the distance of similarity between cases (models) or variables using the difference pattern, which is a measure with a minimum value of zero and a maximum value of 1. Ward's method was used as the method for joining individuals. When the dendogram is cut to level 4 of the combined scale of the Cluster, four groups of variables are obtained (see figure 1).
The group of variables I (see table 1 and 2). Related to the diagnosis, it is the one with the greatest presence in the three groups of defined models.
Figure 1. Dendogram obtained from the analysis of 19 variables.
Table 2. Variable groups obtained through cluster analysis.
| Group I Formulation | Group II Vision | Group III Key success factors | Group IV Control |
| Diagnosis | Val. shared | General strategic problem | Implantation |
| goals | View | General strategic solution | Policies |
| Mission | Scenarios | Key factors for success | Control |
| Strategies | Key result areas | Identity | Strat units of business |
| Stakeholders | |||
| Culture | |||
| Action plan | |||
| General strategic problem | |||
| General strategic solution | |||
| Key factors for success | |||
| Process |
Group I gathers the variables diagnosis, objectives, mission and strategies (see figure 2 and tables 1 and 2). As can be seen, this group of variables is the one focused on diagnosis. It presents the highest percentage of presence of the variables, more than 92% with an average of 94.63, which shows that it is the one with the most presence in the groups of designed models and focuses attention on efficiency.
Figure 2. Group I, focused on the diagnostic variable.
The second group brings together the variables vision, shared values, scenarios, key result areas. The mean of the values of this group of variables is 54.46, which is why it is considered to be the second in importance due to the presence of its variables in the model groups.
Focused on vision (see figure 3 and tables 1 and 2), this group has a strong emphasis on foresight. Reflects the main focus on effectiveness.
Figure 3. Group II, focused on the vision variable.
The third group brings together the variables, general strategic problem, general strategic solution, key success factors, groups involved, culture, identity and action plan.
The mean of the values of the presence of this group of variables is 36, 73, it has a low presence in the model groups.
This group of variables is identity-focused (see Figure 4 and Tables 1 and 2), with a focus on efficacy.
Figure 4. Group III, focused on the identity variable.
The fourth group concentrates the variables strategic business units, implementation, control and policies. Group focused on control. (See figure 5 and tables 1 and 2). This group evidences some influence of the Japanese model Hoshing Kanri. Like the preceding groups of variables, it prioritizes efficiency.
It is the one with the least presence in the groups of established models, this question is due to the fact that the perceived trend is towards strategic planning, that is, the leading role is in the formulation phase, while the implementation and control that- give in the background.
The mean of the values of the presence of the variables is 21.42, which shows that it is the poorest of the four, this is normal considering that this group of variables has to do with implantation and control., variables not shared by most of the designed models.
Figure 5. Group IV, focused on the control variable.
It can be briefly summarized that the four groups of variables reflect an attention of management focused on efficiency rather than effectiveness, with the existence of a high analytical component in it.
Outline of the strategic management construct.
| COSTRUCTO STRATEGIC MANAGEMENT | ||||
| DIMENSIONS | PHASE | OBJECTIVES | VARIABLES | ABILITIES |
| STRATEGIC | Intelligence «choose the future» | Determine the strategic position of the organization | External diagnosis Internal diagnosis Vision | Strategic perception, Strategic thinking Lateral thinking, Strategic instinct, Intuition, reflex,
Foresight, analytical capacity, logical thinking, imagination, sense of action, sense of change, flexibility give |
| TACTIC | Driving «building the future» | Determine the final values of the organization | Mission Goals Objectives Implementation strategies | Strategic thinking, Strategic intention, desire for achievement, awakening consensus, integrative capacity,
flexibility, sense of process, empathy |
| COSTRUCTO STRATEGIC MANAGEMENT | ||||
| DIMENSIONS | PHASE | OBJECTIVES | VARIABLES | ABILITIES |
| OPERATIONAL | Strategic support «reaching the future» | Achieve effectiveness in executing the strategy and reach the final values | Policies Programs Budget Culture Structure Resources | Strategic thinking, Strategic intention, Strategic attitude, withstanding pressure, endurance, response to the unexpected, tolerance of ambiguity, integrative capacity, flexibility, sense of sequence, empathy, sense of
process, sense of change, sense of sequence, expertise |
Some definitions of skills related to the dimensions of the strategic management construct.
Taking into account the importance of the effective execution of the strategic direction, the most essential definitions related to the skills that should characterize the strategist in the management of his company were determined.
These definitions have a guiding character, without pretending to absolutize a question that must be evaluated from a transdisciplinary point of view; in this case, they are defined from the strategic perspective with a guiding purpose that in the future will enable, on the basis of these definitions, the development of instruments for the diagnosis or characterization of the skills of the strategists in relation to the presence or absence of these abilities; which will strengthen the development of the necessary qualities for the leadership of the organizations of the XXI century.
To reach an approach to the interpretation of the defined construct, the author elaborated the definitions related to the skills necessary for the strategist.
Strategic perception.
Sensory image of the external structural characteristics of the phenomena of the material world, which directly influence the strategist's sense organs during the identification of key strategic factors for the guiding organization, and to adequately assess its actual and potential competitors by allowing it Timely use of distinctive capabilities to take advantage of strengths, seize opportunities, mitigate threats, and mitigate weaknesses that enable success. (Ronda Pupo 2002).
Strategic instinct.
Human capacity to see the potential and advantageous future that allows the strategist to adapt the organization to the environment with which it interacts to develop competitive advantages in a sustainable way. (Ronda Pupo 2002).
Strategic intuition.
Ability that develops the strategist who facilitates directly conceiving the truth, without the need for premeditated reasoning; reacting in a timely, rational and consistent manner to changes to place your organization in advantageous positions with respect to its actual and potential competition. (Ronda Pupo 2002).
Strategic reflection.
Psychic activity that ensures the orientation and regulation of the strategist's behavior in the environment. Ability that develops the strategist to react quickly and effectively to events that occur in the environment, avoiding losing the focus of attention of your organization. (Ronda Pupo 2002).
Prospective.
Set of analyzes and studies carried out in order to explore or predict the future in order to place the organization in potentially advantageous positions over the competition. (Ronda Pupo 2002).
Analytical capacity.
Set of psychic properties that the strategist must possess and make it apt to establish, with a high level of objectivity, the link between internal and external strategic aspects in the interaction of the company with its environment, achieving effectiveness in the information flow to maintain a systematic balance in strategic decision making. (Ronda Pupo 2002).
Strategic imagination.
Ability of human consciousness to form new sensory or conceptual images in itself based on the transformation of impressions infused by reality.
Necessary ability in the strategist to form new ideas, projects and actions, developing creativity as a source of competitive advantage over opponents. (Ronda Pupo 2002).
Sense of action.
Orientation that allows the strategist to maintain effectiveness in the conduct of strategic processes in the company, in order to take advantage of competitive advantages to achieve or develop leadership in the competing market. (Ronda Pupo 2002).
Sense of change.
Ability of the strategist to timely perceive the need and the dimension of change, to achieve effective interaction with environmental events that allows him to maintain competitive advantages in a sustained manner. (Ronda Pupo 2002).
Flexibility.
Skill necessary in the strategist to adapt to changes or variations according to the circumstances or needs of the organization or the environment where it competes. (Ronda Pupo 2002).
Strategic thinking.
Set of judgments, concepts and conceptual, technical and human skills necessary for the strategist to successfully carry out the process of formulation, implementation, execution and control of the strategic direction. (Ronda Pupo 2002).
Conceptual skills are those related to the capacities for the integration of the different levels of the organization with coherence and harmony.
Technical skills refer to the mastery of own tools for the formulation, implementation, execution and control of strategies.
Human skills have to do with the ability to interact with members of the organization, promote teamwork, achieve commitment, motivation and effective communication.
Strategic attitude: disposition of mind manifested by the strategist in the successful execution of the actions related to the formulation, execution and control of the strategic direction. (Ronda Pupo 2002).
Strategic intention.
Determination of the strategist's will aimed at a previously established strategic goal. The intention is reflected in the action. (Ronda Pupo 2002).
Integrative capacity.
Skill deployed by the strategist to maintain cohesion and harmony at the strategic, tactical and operational levels; as well as the achievement of the conscious and committed participation of the followers to take full advantage of the competitive advantages of the organization with a view to achieving leadership in the market in which it competes. (Ronda Pupo 2002).
Sense of the process.
Ability that characterizes the strategist to maintain the logical sequence of the current and future events of the company in its interaction with the environment. (Ronda Pupo 2002).
Expertise.
Experience gained by the strategist who allows him to conduct strategic processes. It is not synonymous with experience. (Ronda Pupo 2002).
The elaborated definitions allow to build the conceptual system of the strategic planning construct and serve as a frame of reference for the enrichment of the theory of this important management tool.
Conclusions.
The studies and presentations made in publications in books and articles have been diverse, receiving special attention for their enrichment and theoretical improvement and the practical execution of the strategic direction.
The literature has focused primarily on presenting results from the empirical application of the world's leading entrepreneurs, bringing such practices to the literature as theoretical discoveries.
In the almost 60 years of practicing strategic management in the global business system, he has accumulated an extensive and dispersed conceptual base, with multiple trends and approaches, without there being an approach to what is recognized as the essence of strategic management.
The skills described above prepare the strategist to carry out in depth the strategic analysis of the leading organization. In the next chapter we present a model where to apply these skills.
Bibliography.
- Ronda Pupo, G. (2002). The effectiveness of the implementation of strategic management. Management Booklets Year IV (No. 7).Ronda Pupo, G. (2005). The integration of the strategic, tactical and operational levels in the strategic direction. EAN Magazine No. 52 (September - December 2004.): 28-57.Ronda Pupo, G. (2004). Integrated strategic management model for health institutions in the Latin American context. Magazine of the Pan American Health Organization. Health Management. Year 3 (2).
