Integration of Organization Strategy with Projects:
The Strategic Management Process: An Overview

Strategic management is the process of assessing "what we are" and deciding and implementing "what we intend to be and how we are going to get there." Strategy describes how an organization intends to compete with the resources available in the existing and perceived future environment.

Two major dimensions of strategic management are responding to changes in the external environment and allocating scarce resources of the firm to improve its competitive position. Constant scanning of the external environment for changes is a major requirement for survival in a dynamic competitive environment. The second dimension is the internal responses to new action programs aimed at enhancing the competitive position of the firm. The nature of the responses depends on the type of business, environment volatility, competition, and the organizational culture.

Strategic management provides the theme and focus of the future direction of the organization. It supports consistency of action at every level of the organization. It encourages integration because effort and resources are committed to common goals and strategies. It is a continuous, iterative process aimed at developing an integrated and coordinated long-term plan of action. Strategic management positions the organization to meet the needs and requirements of its customers for the long term. With the long-term position identified, objectives are set, and strategies are developed to achieve objectives and then translated into actions by implementing projects. Strategy can decide the survival of an organization. Most organizations are successful in formulating strategies for what course(s) they should pursue. However, the problem in many organizations is implementing strategies—that is, making them happen. Integration of strategy formulation and implementation often does not exist.

The components of strategic management are closely linked, and all are directed toward the future success of the organization. Strategic management requires strong links among mission, goals, objectives, strategy, and implementation. The mission gives the general purpose of the organization. Goals give global targets within the mission. Objectives give specific targets to goals. Objectives give rise to formulation of strategies to reach objectives. Finally, strategies require actions and tasks to be implemented. In most cases the actions to be taken represent projects. The diagram below shows a schematic of the strategic management process and major activities required.