strategic management framework

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See strategic management competency for a perspective of how the strategic management framework fits into the make-up the competency.

The strategic management framework takes the level of intelligence from know-how to understanding why strategic management should be approached in a particular manner -- understanding the application of the key constructs, concepts, and themes.

This framework reflects the axioms, principles, structure, and objectives that turn the body of knowledge into a body of understanding, answering the questions regarding why certain techniques and constructs are fit together. The framework is the highest level of expression of the strategic management discipline. It provides the basis for the strategic management methodology to transform a business organization - developing a stronger strategic management competency to produce a competitive advantage in order that the organization may endure.

Elements of the framework --

The framework is made up of three elements. These elements represent 1) the business organization construct, the object of strategy, 2) the activities involved in strategy formation and execution, and 3) the people's capabilities --

  • Business design construct -- The business organization is the object of strategy. The business design construct is a template reflecting the structure and elements of the business organization. The construct defines the form the answer to inquiry takes. Inquiry is the process to understand and design a business organization. Therefore, the design construct template is used to represent the intended outcome of the strategy. The use of the construct provides strategic insights and stimulates creative innovation of the business design.
  • See business design construct and business model for further definition.

  • Strategic management principles and activities -- These are the activities that form and execute strategy. They produce the understanding necessary to develop innovative strategy, the business designs to be deployed, plan the deployment, and carry out the deployment. Collectively, this portfolio of activities develops competitive advantage, transforms the business organization, and develops the capabilities for the organization's members.
  • See strategic management activities for further definition.

  • Organization member capabilities -- These are the capabilities the people of the organization needed to carry out the activities to produce an advantage. These capabilities are categorized into three levels - leadership and management begin the foundation, innovation being the next level, and business design being the highest level.
  • See organization member capabilities for further definition.

Capable people and effective processes produce competitive business designs. The business design construct guides the inquiries to produce the strategy and business design. The strategy and business design are reflected in the business model.

Foundational ideas influencing the definition of the framework --

  • creative destruction drives the need to evolve
  • business organizations are complex social systems
  • complexity and value produced by business organizations will be ever increasing
  • systems science and complexity science offer insights into organization design and are incorporated into the knowledge and understanding of the framework - impacting strategic management processes and business organization design.