On Strategies and Tactics

There’s a lot of confusion around what tactics are (just like what strategy is, as you know by now;-)).

Most people think of tactics as actions to implement a strategy, the “how” to execute a strategy.

Or people think of tactics as short term vs. strategy as long term.

We defined strategy as the response to the challenges or opportunities to reach your overall ambitions.

This response should guide decisions and actions for overcoming the challenges and seizing opportunities.

Tactics function precisely the same way, but they apply only to a limited scope instead of your overall organization.

Like, for example:

• We don’t put goods on a shelf but instead leave them on the pallets (Discount supermarkets).
• We only hire from Ivy League schools (Consulting companies).
• If a burger hasn’t been sold within 5 minutes of production, it has to be thrown away (McDonald’s).
• We don’t show porn or live sports (Netflix).
• We commit to a whole season rather than just a pilot episode (Netflix).
• We only accept projects with a minimum of 100k gross margin.
• We keep things simple by only buying from 5 pre-defined suppliers.
• We only source our products locally, within 100 miles of our stores.
• I write in the morning and have meetings only in the afternoon.

All these tactical rules provide real-time guidance to more minor issues or decisions that must be taken. Of course, these tactics need to be aligned with the overall strategy and not contradict it.

Call to action:

• What types of decisions need to be taken regularly in your area of responsibility?
• What tactical rules should be in place for these decisions?