Strategic Planning and Tactics
A strategy is the pattern or plan that integrates an organization's major goals, policies, and actions into a cohesive whole. The goal of a strategic plan is to articulate which business the organization is in and on what basis it competes with others to sell its products or services.
The essence of strategy derives from its military history. Battles should not be fought on a broad front. Instead, the attack must be focused in a concentrated thrust to penetrate the enemy line and open it up for further expansion. Similarly, a company must determine where the competition is weak, then concentrate its resources to penetrate the market in a specific location, thus opening up areas for expansion of other products and services.
A market analysis is like good recognizance to determine where to focus a company's efforts and attack. An action plan is like a good battle plan to determine how the attack should be carried out and by whom.
We cannot imagine a general sending troops out to battle without a strategy or battle plan. "Go beat the enemy" would be a ludicrous plan and grounds for desertion. Yet companies routinely send forth their sales forces and structure their organizations without a strategy or without telling their troops what that strategy is.
It is not enough to determine which products to focus on, or to determine that a certain market share should be gained. It is equally important to determine what the competition is doing, how to position the product in comparison to that competitor, and what tactics and actions to take to implement the strategy.
In many cases, a pattern of activities substitutes for a plan. The president or management team may have a good idea for the future direction of the company, but lack of an articulated plan results in conflicting employee directions and customer confusion. There never seems to be time to get together and write down a plan that will be subject to changes anyway.
Many companies choose to outsource the facilitation and writing of a strategic plan. Executives and staff can spare the time to brainstorm and discuss strategic issues, especially if done in a non-threatening facilitated environment. It is also far easier to critique a draft plan than it is to write one down on a blank sheet of paper. Since strategic planning occurs sporadically, it is difficult to invest the time to develop internal talent and easier to contract out for a company that already has the expertise to draw out your ideas, ask the right questions, and then prepare draft plans for further discussion and agreement. However, it is crucial that those who implement the plan are involved in its creation to obtain buy-in.
For more information about How to Write a Business Plan or How to Develop a Strategy, please see the Course Materials on Establishing an eBusiness on this site.
Intelliaction Inc. offers comprehensive services for commercializing advanced technology, combining managerial and technical expertise with the financing and infrastructure resources required to be successful. We assist entrepreneurs, boards and venture capital firms in making and managing investment decisions.
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