First There's Strategy Strategy involves the match between an organization and its environment. Although some environments change faster than others, all organizations operate in a changing environment. Certainly, the public accounting profession has seen tremendous change over the last decade. New developments have included, for example, technological changes, new .types of investments, increasing complexity in the tax code, personal financial planning, and increasing liability insurance premiums. As the environment changes, threats and opportunities are encountered.
Some organizations react to the changing environment by implementing changes in their structure.
These changes can affect the relationship between the firm and its environment, or the changes can relate to the internal operations of the firm. Changes relating to the relationship of a firm to its environment have more impact on the organization's effectiveness, and changes involving the organization's internal operations have a greater effect on the efficiency of the firm. In general, the long-run success of a firm is more dependent on the organization's effectiveness rather than its efficiency. Concentrating on change involving the organization's internal operations and being extremely efficient will not always insure a firm's long-run success. Strategic Management Strategic management is a continuous process that works to fit an organization into its changing environment.