Strategy Is The Combination Of Tactics Used In A Plan To Achieve A Goal
Strategy is the combination of tactics used in a plan to achieve a goal. Consider when an army attacks an enemy, when co-ordinated conflict happened in a group there was no complex strategy they would simply attack in a pack like animals who don't communicate. The tactic was simply to out number the target prey and overwhelm them. As people learned from their activities they started to put different tactics together; in preparation for a chase they could dig a whole or build a trap (first tactic) then when they find their prey chase it (second tactic) into the trap and finally using some type of weapon kill the prey (third tactic)
Applying this to a business; strategy is the ‘what’, it details the goals and targets of the organisation and why they are important. It takes the whole company in the right direction. Whereas tactics are the ‘how’, the individual activities you will do to implement the strategy. Specific tactics details the tasks to carry out, the timings for the activities and the resources you will need to complete the activity such as the weapon in the example above.
All successful businesses use co-ordinated strategies across the business to achieve a range of goals and targets, for example; to enhance brand awareness, to increase return on invested capital and maximise resource utilisation. Strategy and Tactics go together, if you have a strategy but not tactics in place to achieve it you know what you are intending to do but haven't identified how you might achieve it. If you have tactics but no overall strategy you have action, but what will you achieve? Without direction its unlikely you will ever be satisfied nor "successful".
Consider your business; what would you like to achieve? Most people say more sales or to get rich, maybe to sell the business for millions, unless they already have a strategy in place to grow their business.
What are the goals for your business?
What are your objectives, and those of your team?
What specific startetgies are you working on now?
How are you measuring the results of what you are doing now?
When you have one or more strategies in place it is important to measure the results of your business performance. Don't just look at your profit last year and say you had a good year and wait and see how we do this year. What good is that to the bank or another potential investor if you need more capital? It's important first to define your baseline activity and to monitor this with business centric measures which give you a direct indication as to whether the tactics you are using are having the right impact on your business to achieve your strategic goals.
Some business owners believe they can do the same thing again and again and achieve more, how can this be? Einstein once defined insanity as doing the same thing over and over and expecting different results. He was of course talking about science not business but this philosophy applies the same in business.