Strategic Significance

Question: 

What is the significance of strategic management in an organization?

Gary's Answer: 

Successful strategies are less about effective internal management than they are external competition. These strategies are significant because, without them, no organization can survive in a competitive environment.

Strategies, at least not successful ones, are not formed by deep thinkers at the top of an organization pyramid through some transcendental vision of reality. Real strategic decisions are not top-down, but bottom up. They are not visionary insights. They are solutions that are highly effective for the current situation.

Working strategies arise from the front lines of competition, where decisions must be every day with limited time and limited information. Most of these decisions are merely sufficient, but a few key one turn out to be strategic. These strategic decisions discover a valuable solution to a hidden opportunity. These working strategies then spread throughout their organizations, transforming them, or, they create their own, new organizations, growing from the seed of strategic success.

These strategies need not be written down or even articulated. What is important is that those strategies are understood well enough to be used and spread. In most organizations, successful strategies are spread more by example than they are by training.