Strategic Management Development in Indonesia

A new direction for the further improvement and implementation of the Integrated Community-Managed Development strategy is also shown in the concept of strategic management development (SMD) which seeks to encompass a science-based step-wise approach to adapt and focus institutions or organisations, to formulate, implement and evaluate the decision-making process in order to achieve future goals, particularly relevant for the functionalisation of indigenous institutions in coping with external policy and programme interventions. The strategic management process consists of different stages, i.e. strategy formulation, strategy implementation and strategy evaluation, which are important for the appropriate application of the objective of strategising indigenous institutions for poverty reduction and sustainable community development. The significance of the new direction for advancing the new model of Integrated Community-Managed Development (ICMD) is twofold. Firstly, it serves quality improvement in post-graduate education through the introduction of training in a SMD module in programmes of Integrated Microfinance Management and Integrated Community-Managed Development, in order to familiarise future community-based managers with the benefits of effective development of strategic management at the community level. Secondly, it increases the effectiveness of indigenous institutions in the promotion and factual participation of local stakeholders and participants in democratic decision-making processes.