See what I did there?
It’s the words ‘strategy’ and ‘tactics’ merged.
Because I get them confused sometimes.
And I am always looking for ways to help me.
Instinctively and once-and-for-all.
To know the difference.
The following is taken from.
Or adapted from.
An article by the excellent Rachel Smith from Clearpoint.
Here we go:
Strategy describes the destination and how you are going to get there.
Tactics describe the specific actions you are going to take along the way.
So let’s expand a bit:
Strategy defines your long-term goals and how you’re planning to achieve them. In other words, your strategy gives you the path you need toward achieving your organisation’s mission.
Tactics are much more concrete and are often oriented toward smaller steps and a shorter time frame along the way. They involve best practices, specific plans, resources, etc. They’re also called ‘initiatives’.
So what makes a good strategy?
A good strategy reflects your core values. It listens to your organisation. It is realistic and actionable.
It is results-focused and specific. For example, Mychael’s Furniture Company wants to ‘expand market share’ by displacing customers from the competition.
So they set the strategic goals of:
- Improving sustainability credentials.
- Setting accessible, consistent, mid-range price points.
- Achieving faster delivery times.
- Achieving an exceptional, category-leading customer experience at the point of delivery and installation.
And what makes a good tactic?
A good tactic has a clear purpose that aids your strategy. It has a finite timeline during which specific activities will be completed and their impacts measured.
Good tactics for Mychael’s Furniture Company, each aligned to a specific strategic objective, would be:
- Analyse manufacturing processes to minimise waste, primarily by ‘designing out waste’ at the beginning.Also assessing the sustainability credentials of the entire supply chain and internal operation.
- Design for more efficient manufacture, reduce manufacturing inefficiencies with leaner making approaches, thereby decreasing cost and, by extension, the opportunity decrease prices for customers.This makes consistent pricing a more realistic goal.
- Design for faster making by (for example) standardising components across a collection. Change manufacturing shifts to be less people per shifts, but more shifts.So you’re making over longer periods (so moving from 8 to 16 hours of making in every working 24 hour period).That way, the whole manufacturing operation can respond faster to specific orders.Increase borrowing or allocate reserves to 20% higher stock levels, levered against (sensibly) increased sales projections.
- Massively increased training to all delivery personnel, and/or procuring better courier options. Introducing innovations such as (for example) clear name badges, photography of the furniture in-situ by the delivery team and monthly performance awards for Net Promoter Scoring.Based upon a more sophisticated and answerable customer feedback infrastructure.
Mychael’s Furniture Company can then clearly measure the success of each tactic by comparing their costs and profitability and other KPI’s before and after the new tactical initiatives.
Keeping in mind that it is possible to assess too soon.
Thinking Versus Acting.
This is good, too:
I’ll leave it there for now.
I’ll create a STTARCATTIECGSY Part two, soon.