Business failure is rather common, so the challenge of strategic management is to produce above-average returns and to achieve strategic competitiveness in order to avoid becoming a statistic. Planning is critical. Planning begins with studying the past, then designing the futures, and performing a post-mortem of the past.
Strategic management is interwoven into the entire fabric of management and the operation of the organization. The challenge of strategic management is studying the past, planning the future, and conducting the post-mortem. Performing these processes are essential management tool critical to achieve the company objectives.
History tends to repeat itself. To avoid making the same mistake twice or the mistakes of others requires proper review of the past including that of the competitors. Much can be learned. Critical signs can be identified. When planned events do not happen, conducting the post-mortem allows thought and reflection because you will have studied what happened. This will increase the avoidance of making the same planning errors.
For many large and small companies, quite often planning and strategic management gets pitched aside due to increased short-term performance pressures and demands to deliver the bottle line. Failure to plan, operating haphazardly, in the long run can lead to business breakdown.
Performing post-mortems on successful projects, as well as, unsuccessful ones educates management. Surprisingly, good strategy arises unexpectedly. Good strategy has coherence, coordinated actions, policies, and resources that accomplish an end. Rather than waiting for a Harvard Business School post-mortem on the company to create a case study, which most likely will not happen for your company, management should perform its own post-mortem to create a case study on the company’s strategy.
Failure to perform the post-mortem, a review of the past, will be a lost opportunity in proper strategic management. Such a review will allow all to make informed decisions in the planning process.
Other strategic planning posts recommended: What is Strategy? It Starts with the Kernel