Combining strategic and operational management

Strategic management - ToolsHero

Greg Weismantel, contributor of, posted an nice and critical article about the importance of combining strategic and operational management.

Greg states that the importance of implementing a formal three-year strategic plan is often lost in the moment of operational management.

He claims that for that reason there are so few companies and firms that actually combine strategic management with operational management.

He quotes: “After all, strategic management is not necessary to have a successful company, and most successful companies do not utilize strategic management.”

As a consultant professional, Greg shares his experience with small and large companies and firms, that whenever a CEO or managing partner combines strategy with operations, it is like pouring gasoline on a fire. Boom!

He states that those companies are always vibrant and exciting to be around. As much as they are constantly changing, those companies are constantly monitoring the markets and the competition for those game-changing events that will impact their business.

Greg wrote several articles with always the same key point: “Every person will die, and so will every company or firm.”

He states that the trick is being able to start out in the Emerging quadrant of your life cycle, grow as large as possible in the Growth quadrant, and then maintain your health and vibrancy in the Maturing quadrant.

Another trick that Greg states is that a company or firm must accomplish to keep reinventing itself in order to survive. He states that this is a challenge for any executive, and most CEOs never devote enough focus to those strategic areas that allow it to remain in the Maturing quadrant, i.e. Arthur Andersen, Eastman Kodak, Blockbuster and just recently Radio Shack.

How could these companies fail? They were multi-million and multi-billion-dollar firms and companies.

History shows that CEOs who manage operationally and not strategically will be those executives of a company or firm who will be unaware of a competitive event which changes the market segment.

Their growth strategy always appears as one of merger and acquisition as opposed to the strategic view of setting up game-changing events that link with products and services that their clients need. This leads to his following statement “the hunter inevitably becomes the hunted, and dies. Strategy is not a game, it’s war!”

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