Difference Between Functional & Strategic Managers

In large companies, the differences between functional and strategic

managers are typically fairly distinctive. In a small business, however, the two
roles are not always mutually exclusive. As managers are promoted through the
ranks, learning how to think strategically is an important skill to develop. This
ability is particularly critical for small-business managers, who may be
responsible for strategic planning in addition to functional supervision.
Technical Knowledge
Each functional manager is responsible for a particular division, section
or project. The functional manager is usually selected for his technical expertise
and ability to control the day-to-day operations of the division. A skilled
supervisor may be selected for promotion to a functional managerial position
because of his detailed knowledge of the job. In contrast, a strategic manager
usually has several years of management experience already, and while he may
have extensive technical knowledge, he does not typically use it on a daily
basis. Instead, the strategic manager is responsible for general planning and
guidance that spans several functional areas.
Big Picture
The strategic manager must view each action as it relates to the
organization's larger strategic mission. While the functional manager can
concentrate on what is best for his specific division, the strategic manager must
balance department priorities with the overall strategy and direction of the
company when deciding the best approach. The functional manager can
advocate for resources for his own department. A strategic manager must
mediate conflicts between functional managers to determine the most effective
allocation of company resources.
Hierarchy
The company's upper managers are typically more strategic in nature. In part
this is because the top executives must shape the direction and focus of the
organization. In addition, senior managers have too many responsibilities to
provide the level of oversight needed from a functional manager, and can no
longer be successful by relying solely on functional or technical expertise.
Upper-level strategic managers must delegate that level of control to other,
trusted professionals -- the functional managers.
Influence

Although the company's executives and top strategic managers seem to have a
lot of power and influence, the functional management responsibilities probably
have the most obvious impact on the company's performance. Although the
strategic managers determine the company's mission and direction, functional
managers control the expenses, manage resources, make decisions about the
specific projects that will be undertaken and drive the success or failure of each
initiative. However, because functional activities are often mandated by
legislation and regulations -- which do not differ between organizations -- a
business can differentiate itself from competitors only through innovations in the
strategic approach.

SWOT analysis
Strategic Management:
Strategic management is the continuous planning, monitoring, analysis and
assessment of all that is necessary for an organization to meet its goals and
objectives. The strategic management process involves analyzing crossfunctional business decisions prior to implementing them. Strategic
management typically involves:
1.
2.
3.
4.

Analyzing internal and external strengths and weaknesses.

Formulating action plans.
Executing action plans.
Evaluating to what degree action plans have been successful
and making changes when desired results are not being produced.

A SWOT analysis is a strategic planning tool created by Albert Humphrey to

evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a
project or business venture. It involves specifying the objective and then
identifying the internal and external factors that are favorable and unfavorable
to achieve that objective: Note that there are four factors in the SWOT analysis:
o Helpful Strengths and Opportunities
o Harmful Weaknesses and Threats
o Internal The Strengths and Weaknesses are internal to the
organization
o External The Opportunities and Threats are external to the
organization

The SWOT analysis is used to match strengths to opportunities and convert

weaknesses or threats into strengths or opportunities or at least make them
manageable: