Strategic Management Vs Strategic Performance Management: Understand the Differences
Strategic management is the continuous planning, analyzing, monitoring, and assessment of all the necessary parameters of an organization to meet its objectives. Strategic management assists the organization to take stock of their current situation, mobilize strategies, and deploy them effectively for further analysis.
Strategic management online certification enhances business acumen in situations where critical decisions have to be made and set up a strategic direction to the organization.
Strategic Management courses in IIM emphasizes on understanding the basics of differential organization performance and focuses on the dynamics of change and choice for enterprises.
Strategic performance management, on the other hand, embraces methodologies, indicators, and frameworks. This helps organizations in strategy formulation and give valuable strategic insights to employees that empowers them to challenge and refine their existing strategic assumptions.
Concepts of Strategic Management
- Strategic Management is based on a clear understanding of the mission of the organization.
- The future vision of how it envisages the business growth and acquisition goals of the organization.
- An important concept of Strategic management is the enterprise’s ability to foster both short and long term goals, take tactical decisions and resource allocation.
- Strategic management online certification emphasizes the critical concept of making logical decisions and developing new objectives quickly to be in stride with the ever-evolving markets, business, and technology conditions.
Concepts of Strategic Performance Management
- Strategic Management course in IIM teaches performance management that starts with the evaluation of the company’s strategic plan and finally reaches to the stage of finding employees who support the plan.
- “People*Process = Profitability” is the key defining concept of strategic performance management. Giving the right people, the right set of tools works out spectacularly from the business perspective of the organization.
- This management method is based on a singular premise that information should be shared across all organizational levels and through the creation of measurability and accountability, the much-needed support to organizational goals and objectives is ensured.
Difference Between Strategic Management and Strategic Performance Management
Strategic Management
- It is based on the setting of priorities on the criteria of outcomes and effectiveness.
- It is firmly rooted in sound strategy.
- From a public policy standpoint, Strategic management reflects the government’s policy decisions.
- It is interconnected to expenditure plans and the incidental constraints.
Strategic Performance Management
- It comprises of performance management of the organizational elements to deliver optimal outputs within budgetary constraints.
- For Performance management, to work well, the individual cogs of the organization should be in perfect synch to maintain consistency and mutual reinforcement.
- Strategic performance management assists in setting performance goals without overlapping of the strategic goals. It also emphasizes in resource prioritization and passing information to managers to either conform with or change the current policies to meet the desired goals.
Final Thoughts
Strategic management has both financial and non-financial benefits and sets a definitive direction for the enterprise and its employees. Strategic performance management is the passionate partnership between management as well as the employees for creating the best work environment for employees and coordinate their contributions with the values, goals, and initiatives of the organization.
More Information:
Understanding The Basics Of Strategic Management
What is Strategic management and why you need it?
Senior Executive Development CXO Programme by XLRI
Advantages & Scope of the Strategic Management Course
Career Prospects & Job Opportunities after Strategic Management
IIM KASHIPUR Executive Development Programme In Strategic Marketing Management
Know how certification in strategic management and leadership is beneficial for your career
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