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  • Get your strategy right

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    Get your strategy right by putting in place a framework to guide all your business activities.

    The main objective of strategic management is to provide a framework which guides all your business activities over the medium and longer term. In the absence of a clear strategic focus, you run the risk of making decisions based purely on immediate or pressing concerns.

    This will generally result in a lack of direction, or in constantly shifting direction, depending upon the prevailing conditions. Of course, you must always be focused upon the here and now, but any short term decisions you take should always be guided by a broader strategic context. 

    Traditionally, the emphasis on strategic management has been weak in the tourism industry, but this has changed dramatically in recent years as the realisation has grown that without clear strategies, and plans implemented to realise them, a business tends to lack focus and as such underperforms. 

    Whatever you do in terms of strategic planning, you must ensure that it actually drives the business forward and makes a real and lasting difference to the way you do things every day. With this in mind, the model for strategic management is radically different from what you may have come across elsewhere.

    Diagram illustrates the principles of the strategic management model.

    It has been designed specifically with hospitality and tourism enterprises in mind and is intended to ensure that strategic planning, execution and control influence everything you do in your business so that there is no disconnect between strategy and the here and now.

    At the strategic and annual planning stage, there are a number of important activities to consider, including engaging with stakeholders, conducting an environmental analysis and defining strategic goals.

    At the performance execution stage, the critical drivers of performance include financial management, management and employee performance and customer relationships.

    At the review and evaluation stage you will need to look at results in areas such as customer, people, operations and marketing in addition to the finances.

    Using the model in the understanding strategic management guide will help you to develop a better, and more action-oriented, understanding of strategic management. Through this understanding you will have taken the first steps towards increasing your strategic focus and in conjunction with the additional guides and tools, you will transform how you manage your business from a strategic perspective.