Strategic management systems

"The competitive strategy not only responds to the environment but also tries to shape the environment in favor of the company." Michael Porter.

Introduction

The study of strategy and strategic direction today constitutes a fundamental aspect in the entire system of any organization, not only for what it represents for its internal organizational structure but also for what it allows it to obtain in relation to knowledge and work in its environment.

Actually, the conditions of our environment have been changing, every day faster, with more uncertainty and more turbulent, this makes strategic decisions lose their effectiveness in a shorter time, so the change of strategy is imposed more frequently and haste.

In this regard, Davis, S. and Meyer, C., expressed the following in The speed of change in the connected economy:

"As the competitive environment accelerates, the spectrum of opportunity in which a strategy can remain effective, no matter how well thought out, is constantly decreasing."

We will study the relationship between strategic management and organizational management, the different strategy concepts, strategic management and the process for its general development, as well as the barriers to its application, and other fundamental aspects of interest.

We must constantly make decisions and these should not be without a foundation, without an adequate direction and meaning, this is made possible by the formulation, as well as the use of a strategy with a strategic direction approach, however, what has been pointed out above inclines us to take into account two very important elements such as discipline and imagination, which today is gaining many followers, of which we will see, usefulness and application.

In a general sense, it is necessary to express that the strategy can have different approaches depending on the needs and specific conditions of each organization, in many cases they are aimed at increasing productivity, in others at reducing costs, in some Markets are also directed towards demand, in which a great relationship with customers must be established, in addition to these approaches, in practice others are used.

Evolution of the management system in organizations.

As expressed by Cuervo García, A. (1995) in, The strategic direction of the company (Page 52) and I quote: “ The strategic direction is synonymous with the direction of companies, so the emergence and evolution of the former cannot be understood without understanding management systems ”.

Based on the above, we will present a synthesis on the evolution of the management systems proposed by Renau Piqueras, J. (1995) in The Strategic Direction: Its evolution and current study, on the basis of the evolutionary scheme of Ansoff and I quote:

“Direction by control. It is a valid management system for stable environments since it focuses its attention on the short term and internal aspects of efficiency. The results of the company depend on a correct allocation of resources, so control is a basic technique in this type of direction. Direction by extrapolation. In this system, the environment is still stable, so it is possible to predict the future from the extrapolation of past situations. In this way, it is possible to set long-term objectives as well as to define through planning the way to go to reach the objectives. This stage in the evolution of management systems arises as the environment becomes less and less stable, so it is not possible to extrapolate future trends.At this moment the concept of strategy and the strategic direction of the company begins to acquire all its meaning and validity. Although the environment is already dynamic, it is not yet turbulent, so business management tries to anticipate its evolution by responding to its threats and opportunities based on internal strengths and weaknesses. Management through flexible and rapid responses. The presence of an increasingly turbulent environment often does not allow business management even an attitude of anticipation. For this reason, it is necessary an attitude that allows to quickly detect changes in the environment and give quick and flexible responses to the challenges posed at all times.

Strategy concept

The etymology of the word strategy is from the Greek phrase "strategeia" that expresses the art of movements and exercises, the art of being general, the art of the boss.

Actually, human beings have used the strategy since remote years and in various aspects such as in their family life or in their personal life in general, another application has been in war, but it is not until after the second half of the last century that is used or applied in the organizational sphere already as an evolved concept, and still evolving, as a determined effort and adjusted to a formality so that an organization can fulfill what has been proposed, and as a technique that is part of the management system.

The concepts on the strategy have been expressed by the different authors or scholars of the subject, each with their approach or appreciation, we will present some of the best known:

Chandler, A. (1962). "It is the determination of basic long-term goals and objectives in the organization, together with the actions to be taken and the allocation of resources necessary to achieve the goals set."

It is observed that this definition not only deals with the goals themselves, but with the actions for their fulfillment, in a general sense Chandler was interested in the search for key ideas.

Ansoff, H. (1976). "It is the common bond between the organization's activities and the product-market relationships, which defines the essential nature of the businesses in which the organization operates and the businesses it foresees for the future."

He further exposed and listed four components of the strategy:

Product - market area: The products and markets in which the organization operates A growth vector: The changes that the organization plans to make in the product - market area Competitive advantages. The main characteristics of the organization that give it competitive power in each product - market position Synergy: As a measure of the potential for joint action.

Andrews, KR (1977). "It is the pattern of the main objectives, purposes or goals and the policies and plans to achieve them, established in such a way that they define what kind of business the organization is or wants to be in and what kind of organization it is or wants to be."

Porter, M. (1982). "The essence of the formulation of a competitive strategy consists of relating a company to its environment and involves undertaking offensive or defensive actions to create a defensible position against the five competitive forces in the industrial sector in which it is present and thus obtain a superior return on the company's investment ”.

Let us remember that the five forces raised, in a general sense, are the following:

Threats to entry (economies of scale, need to invest large capital, product differentiation, etc.) The bargaining power of customers The bargaining power of suppliers The threat of substitute products The fight for a position in the market.

Drucker, P. (1993). “The organization's strategy is the answer to two questions: What is our business? And what should it be?

According to Drucker, the first question seems very simple to many entrepreneurs and is not asked, this being the main cause of many failures in organizations.

Hax, AC & Majluf, NS, (1996).

“A means of establishing the organization's purposes in terms of its long-term objectives, action programs, and resource allocation priorities. A definition of the organization's competitive environment. An attempt to achieve long-term sustainable advantage. in each of its businesses by adequately responding to the opportunities and threats in the environment and the strengths and weaknesses of the organization A way of defining managerial tasks integrating the corporate, business and functional perspectives A coherent, unifying decision pattern and integrative. A definition of the nature of the economic and non-economic contributions that are proposed to the participating groups of the organization. A path to propel the organization towards the achievement of its objectives.A means of developing the essential competencies of the organization. A way of acquiring tangible or intangible resources that develop sufficient capacities to ensure sustainable competitive advantage over time ”.

These authors express this concept, as can be seen, from the point of view of several dimensions, in a very comprehensive way and related to the most important activities of the organization, they also consider that with this comprehensive definition, strategy is the main structure of any organization, since it allows them to adapt to the environment and guarantees continuity in their work.

Other authors such as Mintzberg, H., have expressed their criteria in relation to the strategy, the same, cited in Davenport, T. (2006). Human Capital, expresses the strategy through five categories and I quote:

"Projected strategy, are the formal plans of an organization to achieve success. some will bear fruit and others will fail. The first are premeditated strategies and the second unrealized strategies.

Occasionally, companies achieve success in an unplanned way that he calls emergent strategy. Everything that has been successful, projected or not, he calls a realized strategy ”.

This way of Mintzberg, of exposing the strategy, suggests that fertile ideas are not only exposed by management personnel, that they can also spring from workers in general.

To complete this aspect, it is necessary to add that the strategy must lead the organization towards what it should be and towards where it must go, however, there is truly no one hundred percent certainty that this will be the case until it do not put it to the test and its results are obtained, the latter depending on both internal and external factors.

Strategic direction

The strategic direction is not only closely related to the organizational direction, but it is stated that it is part of it, dealing with the determination of the strategy and its implementation. It arises as a consequence of the development of organizations and the speed of change in the environment, reaching such importance that it is very difficult to survive if an adequate strategic direction is not used as a central instrument of work.

From simple situations, over time, we have passed to situations of more formality and complexity, making it necessary to implement work policies as a way to direct ourselves and increase collaboration. The studies and applications that raised the level and depth in the direction continued, the definitions of strategy emerged which were deepened until reaching what Stonner in Administration calls the initial strategy approach, until reaching the strategic direction in a more refined and adjusted way to the characteristics of our times where aspects such as the establishment of goals and an effective implementation are taken into account, with a high level of development through a process which we will expose at length later.

Cuervo García, A. (1995) in The strategic direction of the company, (Page 52), states the following:

“The strategic direction is characterized by: a) the uncertainty about the environment, the behavior of the competitors and the preferences of the clients; b) the complexity derived from the different ways of conceiving the environment and its interrelation with the company, and c) the organizational conflicts between decision-makers and those affected by them ”.

The same author states that in this context " strategic management deals with decisions aimed at formulating and implementing the strategy, which implies the mobilization of the company's resources to achieve global objectives." (P. 51).

Strategy levels

Organizations to guarantee the results of their activity have an organizational structure for decision-making and work performance in general. For the development of a strategic direction capable of fulfilling the mission, it is necessary to establish three levels of strategies which are:

Corporate (organization) strategy Unit, business or division strategy Functional strategy

Each of these levels has its characteristics which will be explained below.

Corporate strategy (of the organization).

The relationship of the organization with its environment is the essential element of this first level, it constitutes a global management plan that contemplates the activities in which the organization intends to act and the decisions and actions that it must undertake for the direction and fulfillment of the provisions. It is necessary to state that the broadest sense of this level can be appreciated in organizations with different products or businesses, since those that only develop their work for a product or a business this strategic level overlaps with the second level, that is, the unit or business, so in a general sense we can say that the strategy at this level is expressed to guarantee the interests, activities and operations of organizations that have different lines.

It is important to determine at this level in which businesses to work, as well as what goals or objectives each of these have, another aspect is the actions to be taken and the resources to be used.

The aspects raised so far are transcendent but they will be nuanced and will be influenced by the values and approaches that bosses and workers have that will determine and carry out the same. This allows for longer term influence and increased motivation.

Essential at this level is the determination of the organization's field of action related to its environment, as well as the proper integration of all the businesses in which it must intervene.

Unit or division strategy

This level refers only to the strategic treatment of a unit or division for a single business or product, therefore we can see that the treatment is more specific and that it is framed in the product, service or business that it must attend with a focus on the client, frames the treatment of the activities or functions that must be guaranteed for the fulfillment of the goals or objectives within the market in which it operates, and also specifically of the resources necessary for its activity.

In summary, it must be said that this level tries to develop more effectively and efficiently the activities that correspond to your business, the fulfillment of the above must be based on the use and exploitation of their capacities and abilities, and with the interrelation and integration of all the factors and corresponding areas.

Functional strategy

At this level, the activity is even more specific and of less scope in terms of time than at the previous level and is based on the rational use of resources and capacities that each functional area possesses. Supreme interest charges the execution with the best performance, with high quality of work and products, with maximum work productivity. Coordination is also of great importance. The actions to be carried out, such as communication, information transmission, worker motivation, conflict resolution, are shorter term, greater dynamism is required by virtue of achieving the best results.

However, that each level has its "hierarchy" and its specificities, each one is vitally important, so the success of the global strategic direction depends on the coherence and coordination that exists between them, since the problems of the organization They are not different for its members, the mission of the organization is the same for everyone, what varies are the specific tasks that each level must develop to fulfill the agreed mission.

Strategic Management Process

The strategic management process is not unique for all organizations, but is manifested based on the mission and the characteristics of each one of them, as well as the claims and new needs that it has, however, a group of general steps that must be adapted, the steps or stages are as follows:

Determination and establishment of the mission and the goals or purposes of the organization Strategic diagnosis Search and determination of strategic options Evaluation and selection of strategies Implementation of the selected strategy Monitoring and strategic control

Next we will study some of the essential characteristics of each of the steps.

Determination and establishment of the mission and goals or purposes of the organization.

The mission is the reason for being of an organization, it is its end, it allows us to know where we are and where we must go to achieve what we have proposed. Sometimes managers do not give the required value thinking and acting as if the mission were something simple or unimportant, which we consider a serious error, it must be understood and assimilated by all workers so that they act motivated and fully conviction and coordination to fulfill it.

The mission must be precise so that there is no confusion at the time of its fulfillment and that allows through it to determine the essential goals.

A well-defined mission should guarantee the answer to the following questions:

What is the raison d'être of the organization? What are the products or services offered by the organization? For whom are the products or services, that is, customers or users? What are the distinctive elements of the organization?

Each organization, according to its characteristics, must determine the group of internal and external factors that affect it, since well used they will help and favor the definition of an adequate mission, but used improperly we will obtain contrary results.

Once the mission is defined, we are in a position to determine the goals of the organization, which must provide us with a correct direction and meaning so that the energies deployed in its fulfillment are not wasted.

The goals must also be defined precisely to guarantee that the evaluation carried out is effective, allowing us to make the pertinent corrections when necessary.

Sometimes the correct goals are not set due to certain factors, such as:

Lack of understanding of the mission Lack of knowledge of those who should determine the goals Fear of failure

Strategic diagnosis.

Having determined the mission and the goals or purposes of the organization for the future, it is necessary to establish a balance between what exists in the present and that future to which we must arrive, that is, it is necessary to identify the gap between what we have and what we want to have.

For this, it is necessary to carry out a diagnosis that allows a current evaluation to determine with the greatest precision the aspects, both internal and of the environment, that are acting in a positive or negative sense and that have an impact on the fulfillment of the goals and the mission.

Together with the above, there are other general objectives of the diagnosis, among which are:

Determine the set of factors that characterize the current business, the main problems and the causes that originate it. Acquire knowledge about the current process, system and procedures of the organization, as well as the main characteristics of the same. Analyze and evaluate the aspects studied critically.

The diagnosis that is made must allow us to obtain the strengths and weaknesses of the organization, as well as the threats and opportunities imposed by the environment. Therefore, both an internal and external analysis is required.

The external analysis tries and must achieve, the identification of the set of threats and opportunities of the environment in which the organization is located, among other aspects, social, political, economic or technological factors are valued; position of clients related to the organization; position and relationship with suppliers.

On the other hand, the internal analysis allows to determine the strengths and weaknesses of the organization, being able to assess the situation of human resources; the processes used, as well as the technology and the relationship between the two; economic position and state of finances; internal relationships, both interpersonal and organizational; information flow; commercial capacity and others.

As previously stated, we must identify the internal strengths and weaknesses and the threats and opportunities imposed by the environment, let us remember these aspects:

Strengths (F). Internal factors of the organization which are its strong points that serve as support for the fulfillment of the mission.

Weaknesses (D). Internal factors of the organization that are considered weak points and that it is necessary to mitigate, eliminate or turn into strengths to contribute to the fulfillment of the mission.

Opportunities (O). A situation that occurs when the prevailing circumstances in the environment offer an organization, without its influence, the possibility of going beyond the goals and objectives that have been set. Specific situation in which actions can be developed enjoying competitive advantages.

Threats (A). Challenges coming from the environment with an unfavorable trend or development for the organization, also without its influence.

With these elements, we are able to build a SWOT matrix as a very useful tool for reflecting on the different variants or strategies that can be established:

O / F ratio. The forces of the organization are used to take advantage of the opportunities of the environment. They are also called forward or offensive strategies. O / D ratio. To overcome internal weaknesses by taking advantage of opportunities in the environment. Known as adaptive or opportunity strategies A / F ratio. Strengths are used to face threats. Called as control or defensive strategies A / D relationship. Environmental threats are faced taking into account the weaknesses of the organization. Called survival strategies.

For the determination of the necessary elements that lead us to carry out the diagnosis, different techniques can be used, such as: interviews, questionnaires, direct observations, group analysis, investigations and others.

This diagnostic step is of great relevance and importance for the execution of the entire process, since the scope and precision of the first will depend on the success of the second.

Search and determination of strategic options.

Upon completion of the strategic analysis through the diagnosis carried out, the organization must determine, and is in a position to do so, the strategic options at the three levels of strategy to obtain the alternatives that allow it to fulfill the mission and the goals and objectives proposed..

We will deal with two aspects that in recent times have become very important in the search and formulation of strategies, these are: discipline and imagination.

The discipline consists in the formality, seriousness, consistency and perseverance that we have for the search and formulation of the strategy in the different environments and situations.

Imagination is expressed through the application of different aspects such as: intuition, creativity, vision of the future and others that allow the formulation of the strategy with the greatest chances of success.

It is very important and enlightening to point out the consensus among researchers and scholars on the subject on the usefulness of using both elements in a combined way, as Day and Schoemaker call it when expressing the term “disciplined imagination”. This combination is due to the difficulties that the elements of discipline and imagination present in their use separately.

The disciplined imagination allows obtaining strategies, which implicitly carry any idea or imaginative aspect that without the use of these, the characteristics of the environment would not give us the possibility of reaching an adequate strategy, in the same way without a discipline that leads the process in a coherent, realistic and with the consequent rigor we would not reach our objective.

What will be explained below is not in contradiction with the above, but on the contrary, its implementation must take it into account.

Decision steps are imposed to make the best option, but this is not possible if we have not done a previous search work, without limiting ourselves in the size of the group of strategies to choose from, this is important, do not limit ourselves with one or two alternatives, so without inventing unnecessary alternatives, the more we have to choose from, the greater the possibility of finding the one with the best chances of success, that is, they must not be alien to the goals and mission to be developed.

Let us remember that in formulating a strategy we find several drawbacks, such as the uncertainty of the environment that surrounds us, our capacities of both the human factor and the material, what has been said reaffirms us that these possible limitations and others, both objective and subjective, are Uncertainties mean that the certainty of success is not total, however we must try to ensure that our work is as accurate as possible.

Each of these strategies found can determine a direction for the subsequent development of the organization as a whole, in other cases the path of determining several directions is chosen with a functional approach: human resources, marketing, management, operations and others, but in In the latter case, the integrality to obtain the mission and the proposed goals as a whole should not be lost.

Evaluation and selection of strategies

The trends and changes in the environment in a general sense determine that in organizations it is necessary to carry out modifications, often profound and in short periods of time. Therefore, the application of a strategic orientation that allows not only an adjustment to the new situation but to anticipate events is of great importance, that is, a proactive work, this will allow us to achieve the competitive advantages necessary to maintain organizational health and the permanence and development of the organization in its business.

Determined and designed the different alternatives found requires a thorough evaluation of each of them.

Rumelt, RP (1974). Strategy, structure and economic performance, exposes four evaluation criteria and I quote:

"The strategy and the elements that compose it must be congruent. Separate the relevant aspects from those that are not, concentrating the effort and resources on the former. It must concentrate on the problems that have a possible solution according to the resources and capacities that the organization possesses. The strategy must have the possibility of achieving the proposed results ”.

With the group of alternatives evaluated, we must select the one that offers us the best solution and that at the same time its use is feasible according to the capabilities of the organization, to proceed with its implementation. Something is remembered that sometimes is often forgotten are the consequences, both positive and negative, as well as the systemic analysis and not individualized evaluations.

Regarding the formulation and evaluation and selection of strategies, Day, G. and Schoemaker, P., in Wharton, Management of emerging technologies, state the following:

"The strategy construction process can be conceived as a set of experiments in the mind of the strategist (or strategists), by means of which several strategies are created and one is selected for its application (and continues) the quality of the organization's ability to create a strategy will ultimately affect the quality of the strategy and its results ”. The parenthesis is the author's.

Implementation of the selected strategy

Once the strategy to be applied has been defined, it is necessary to put it into practice by incorporating it into the organization's plans, only then will we obtain the desired benefits.

The implementation of the strategy consists of putting the selected strategy into action.

Implementation is a complex process, where resistance to change appears in people, so the essential learning and adaptation of workers requires by the bosses the exercise of leadership with a high commitment and a concentrated approach to the required change.

The action plan prepared must enable the fulfillment of the goals and objectives to be achieved with the strategy selected and in execution.

Let us bear in mind that the design of an action plan is, although it is well formed and detailed, in itself insufficient to guarantee obtaining good results, its implementation is also required, observing the necessary requirements for that purpose.

The implementation of the strategy is not outlined by itself, but the organization is required to mobilize resources and deploy its capabilities, including continuous improvement of the products or services it provides, adequate information management, customer service. effectively and quickly, these capabilities, as well as the resources used, must be coordinated consistently so that they are available and used in time, place and quantity effectively and efficiently.

The implementation of the strategy is not alien to other essential elements of the organization, which today are gaining more and more strength in their relationship with the implementation, among others we can highlight: the organizational structure; the importance of the role of management personnel, due to their knowledge from the formulation of the new mission and strategy; other bosses, due to the role they play directly in the implementation; established procedures and their use; the commitment acquired by the workers; the application of technology; It is very difficult to be successful in implementing a strategy if these elements are not managed effectively.

Monitoring and strategic control

This last step or stage of the strategic management process continues to maintain great relevance since it guarantees its systematic attention, verifies if the movements are oriented towards the goals and towards the new mission, if the decisions taken are correct, and the pertinent adequacy if necessary, that is, depending on the changes that originate in the environment or within the organization.

If control is important, so is monitoring, since it makes it possible to obtain updated elements at any moment or part of the strategic management process.

In summary, the monitoring and control of the strategic management process enables us to:

Verify if the strategy is developed according to what is indicated, if the expected results are being obtained with the selected strategy.

As a general line in the analysis of these aspects, not only objective factors but also subjective factors should be taken into account, such as the adaptation or change of people towards the new situation they face, the way of thinking and acting they had previously.

Another element is to observe that the greatest deficiencies occur in the transition to the new situation.

If it is very important not to neglect the elements or factors that affect or affect the strategic management process, it is also important to promptly determine and implement it, so as not to run the risk of its obsolescence before applying it, due to to the acceleration of organizational change.

Relationship between strategy and organizational structure

The need to implement a different strategy brings with it transformations that can be varied, depending on the strategy itself and the characteristics of the organization. Sometimes the manager or boss does not deeply assess the incongruity of the organizational structure with the new strategy, or clings, sometimes unconsciously, to the current structure.

An essential issue, it must constitute the assessment of the concordance between these two aspects to vary the structure if necessary, since otherwise the work will be doomed to failure.

As expressed by Galbrait, J. and Kasanjian, R. (1996). Strategy implementation: Structure, systems and process. And I quote:

"An organization's strategy varies over time, so its structure must also change."

The importance seen to this issue has determined that other researchers and connoisseurs have issued their opinion in this regard, for example, Miles, R. and Snow, Ch. (1978). Organizational strategy, structure and process, have raised the relationship between strategy, structure and processes, pointing out in the present case that organizations must support strategy with correctly designed structures and processes.

Stonner, JF (2004). Administration, exposes a model proposed by the Mc Kinsey & Co. Consultant, called the “Seven-S's Model”. It states that seven factors can negatively affect change, not allowing the obtaining of good results, these factors must be interrelated and are: strategy, organizational structure, systems, style, personnel, skills and superordinary goals.

The model raises some interesting aspects about the factors:

That in strategy, in practice, development poses fewer problems than its execution. An organization can make changes in its structure to achieve strategic objectives. Systems are all formal or informal procedures that allow the organization to function. Style does not refer to personality, but rather to the pattern of actions carried out by administrators Conceiving personnel as highly valuable elements to be developed, conserved and protected Skills refer to the activities they perform best The superordinary goals are the guiding concepts, values and aspirations that unite the organization to a common purpose.

Some aspects to keep in mind

However, to develop the subject extensively, we consider it necessary to expose, or reiterate, certain aspects that have great influence in the integral process that includes, formulation, selection, application, development and rectification of strategies in the organization.

We study how the environment is increasingly complex and changing until it is turbulent, an issue that imposes the taking into account of some aspects among which are expressed:

Increase speed. This aspect is key and in many cases decisive, not only the forecast is important but also the ability to react to certain phenomena that occur in the environment and that on many occasions take a very accelerated total turn. Obtaining or maintaining a competitive advantage may depend on our quick action Flexibility in action. If speed is important, so is flexibility that allows us to invest or change behavior and / or taking actions in the face of events or situations that occur. Creativity and innovation. The choice of creative actions in complex and unpredictable situations give us the possibility of conceiving strategies that adjust to existing conditions,The application of this creativity through adequate innovations is the central point in many cases at the present time. Accurate selection of the product or business. I think that a phrase from our National Hero José Martí is more than eloquent to define this point and I quote: “What is necessary at all times must be done at all times.” Information and training for workers. Doubly vital is the information and preparation of all those who will intervene in any of the aspects that make up the integral process.Information and training for workers. Doubly vital is the information and preparation of all those who will intervene in any of the aspects that make up the integral process.Information and training for workers. Doubly vital is the information and preparation of all those who will intervene in any of the aspects that make up the integral process.

These, logically, are not the only aspects, many others depending on the characteristics of the organization and the situation, are important, but in the opinion of the author these elements are general for all organizations, taking into account the appropriate adjustments.

Barriers against the implementation of the strategy

During the process followed "not everything is rosy", we find adverse elements that constitute real walls or barriers that hinder work and that sometimes if we are not aware of them to counteract them, they can lead us to the failure of the strategy taken.

These challenges can be of an objective or subjective nature, so it is necessary to unmask them and take actions to neutralize them, among others, some are proposed:

Fears of facing different situations in depth Prejudices related to previous situations Management styles or methods that are had Organizational culture with extreme roots Internal or external regulations of the organization, whether territorial, of the country or of the branch to which belongs to the organization Changes in the environment Difficulties with existing human, financial or material resources of any kind Lack of knowledge of the organization's processes, applied technology, and mechanisms to implement a correct strategic direction.

Summary

We study how strategy and strategic direction today constitute a fundamental aspect in the entire system of any organization, as well as the relationship between strategic direction and organizational direction, aspects that must be clearly defined in order to reach a full understanding and development. of the treated topic.

Likewise, we saw how the strategy can have different approaches depending on the needs and specific conditions of each organization.

Within the above context, it is important to highlight what was raised by Cuervo García, A., where he states "Strategic management is synonymous with business management, so its emergence and evolution cannot be understood without understanding management systems."

In the same way, knowing the evolution of the management system in organizations that are: management by control, management by extrapolation, management by anticipation, management through flexible and quick responses.

We start by expressing how the strategy has been used since remote years and in various aspects, although the essence of our work is its application in the organizational sphere as an evolved concept, and still evolving, as a technique that is part of the management system.

The concepts about it have been expressed by different authors, each with their approach or appreciation, their essence must be studied and extracted from each one, expressed in each case after exposing the definition.

Bear in mind that the strategy must lead the organization towards what it should be and where it should go.

We study how strategic management is not only closely related to organizational management, but is also part of it, taking care of its implementation.

I consider that they should study exactly what has been stated about development from the so-called initial strategy approach, until reaching the strategic direction as a refined form and adjusted to the characteristics of our times, as well as what is stated by Cuervo García, A., which raises the following:

For the development of strategic direction in organizations, the establishment of three levels of strategies was highlighted, to be able to fulfill the mission and organizational goals.

Remember that these levels are:

Corporate (organization) strategy Unit, business or division strategy Functional strategy

However, that each level has its “hierarchy” and its specificities, each one is vitally important, so the success of the global strategic direction depends on the coherence and coordination that exists between them since the problems of the organization do not They are different, the mission of the organization is the same for everyone.

The characteristics of each one are extensively exposed and must be studied in depth.

The initial theoretical context is the fundamental basis for putting strategic management into practice through the strategic management process, which, as stated, is not unique for all organizations, but is manifested in function of the mission and characteristics of each one of them, as well as the claims and new needs that it has, despite this objective reality we have a group of general steps that must be followed and adapted, the steps are:

Determination and establishment of the mission and the goals or purposes of the organization Strategic diagnosis Search and determination of strategic options Evaluation and selection of strategies Implementation of the selected strategy Monitoring and strategic control

We will only express in this summary some of the elements that are detailed in depth in the chapter.

The mission is the reason for being of an organization. We emphasize that sometimes managers do not give it the required importance, which we consider a serious error, it must be understood and assimilated by all workers so that they act motivated and with full conviction and coordination to comply with it.

Once the mission is defined, we are in a position to determine the goals of the organization, which must provide us with a correct direction and meaning. Goals must also be precisely defined.

Determined the mission and the goals or purposes of the organization, it is necessary to establish a balance between what exists in the present and that future to which we must arrive, this is achieved with the realization of a diagnosis that allows a current evaluation to determine with the greatest precision aspects, both internal and of the environment, that are acting in a positive or negative sense and that affect the fulfillment of the goals and the mission.

The diagnosis that is made must allow us to obtain the strengths and weaknesses of the organization, as well as the threats and opportunities imposed by the environment.

The internal analysis makes it possible to determine the strengths and weaknesses of the organization and the external one the threats and opportunities imposed by the environment.

With these elements, build a SWOT matrix for reflection on the different strategies that can be established:

O / F ratio. The forces of the organization are used to take advantage of the opportunities of the environment. They are also called forward or offensive strategies. O / D ratio. To overcome internal weaknesses by taking advantage of opportunities in the environment. Known as adaptive or opportunity strategies A / F ratio. Strengths are used to face threats. Called as control or defensive strategies A / D relationship. Environmental threats are faced taking into account the weaknesses of the organization. Called survival strategies.

This step is of great relevance and importance for the execution of the entire process since success will depend on its precision.

The diagnosis carried out allows the organization to determine the strategic options at the three levels of strategy.

Two aspects were discussed: discipline and imagination, both their characteristics and their application, and that the latter had to be combined in what was called "disciplined imagination", an issue that is very important in obtaining strategies that are as close as possible. possible to the objective reality of the environment and our needs.

Once the strategy to be applied has been defined, it must be put into practice by incorporating it into the organization's plans.

The implementation of the strategy consists of putting the selected strategy into action.

The action plan prepared must enable the fulfillment of the goals and objectives to be achieved with the strategy selected and in execution.

The implementation of the strategy requires the organization to mobilize resources and deploy its capacities, which must be coherently coordinated so that they are available and used in time, place and quantity in an effective and efficient manner.

The monitoring and control of the strategic management process is highly relevant as it guarantees systematic attention, verifies if the movements are oriented towards the goals and towards the new mission, if the decisions taken are correct, and the pertinent adaptation if necessary.

If control is important, so is follow-up.

Observe that the greatest deficiencies occur in the transition to the new situation.

An observation that must be taken into account was highlighted, which states: the promptness in determining and starting the process is very important, so as not to run the risk of its obsolescence before being applied due to the acceleration of organizational change.

It was studied that the need to implement a different strategy brings transformations that can be varied, depending on the strategy itself and the characteristics of the organization. An essential aspect should constitute the assessment of the concordance between these two aspects in order to vary the structure if necessary.

Some criteria from different authors were studied and should be evaluated.

The aspects to be taken into account to guarantee the obtaining and development of the strategy must be studied with the necessary seriousness, some of which, the most general, were exposed.

During the process we can find adverse elements that hinder the work and that sometimes can lead to the failure of the strategy taken.

These challenges can be objective or subjective, some of those exposed are:

Fears of facing different situations in depth Prejudices related to previous situations Organizational culture with extreme roots Changes in the environment Difficulties with existing resources, whether human, financial or material of any kind.

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