It happens all the time. You take your team away from the routine for a few hours, brainstorm, and develop a brilliant new strategy. And when you all get back into the routine, the routine wins and strategy loses. Nothing changes.
The strategy was brilliant on the whiteboard, but never got to the real world. What happened?
Strategy is useless without tactics for execution. Don’t leave that whiteboard without developing key tactics.
For example, in How to Develop Your Business Strategy, posted here a few days ago, I used a bicycle store as an example.
…imagine the difference between a bicycle retail store owned and operated by a former professional bike racer, and another one owned and operated by a couple with children who like bicycles as a family activity.
The first one will probably stock and sell expensive, sophisticated bicycles for the racing enthusiast and extreme long-distance or mountain biking hobbyist. The second will probably emphasize bicycles for children, bike trailers, carriers, and accessories for families.
Whichever direction the bike store takes is strategy, and it won’t work without tactics. In this case the tactics would include what to stock in the store and what not to stock, general pricing level, promotions, bundles, participation in local events, tone and content of social media, advertising messages and media, even how to position service.
I’m amazed that so much of what I see written about business plans includes strategy but skips tactics. In truth, the tactics are usually there, broken into sections such as the marketing plan, product plan, financial plan, and management plan.
So, the good news is that we actually do think through tactics and include them in the plan but the bad news is we don’t always articulate the relationships between the strategy and the tactics. We lose strategic alignment, which is the coordination between fundamental strategy and tactics to execute.
What’s strategic alignment? It’s the right hand knowing—and working with—what the left hand is doing. So if the bike store owner says her strategy is to focus on family market then she shouldn’t stock fancy bikes, she can’t charge upscale pricing, she can’t advertise in the extreme sports or extreme fitness websites. Her social media content is about kids and family, not racing. She takes her store to local activities like charity bike rides and school parades, not triathlons.
“Strategy without tactics is the slowest route to victory, and tactics without strategy is the noise before defeat.” – Sun Tzu from “The Art of War”
Lack of alignment happens way too often. I spent years consulting with Apple Computers helping dealers counter the so-called “box pushers” in big-box stores by focusing on small business and really good service.
However, way too often, they’d claim that as strategy in meetings, but still offer only mediocre service.
The good ones remodeled their stores to add a big service counter and put employees in white coats behind the counter. And they bundled installation into sales and added white vans plastered with “another installation” banners on the side.
So as you do your plan, think of a pyramid in which strategy is at the top, tactics in the middle, and concrete specifics including milestones, tasks, budgets, and performance metrics at the bottom.
Make sure your pyramid points line up. If you are doing a lean plan, leave strategy and tactics as bullet points. If you are doing a formal plan, break the tactics up into marketing, product, financial, management, and other.
Do your thinking first, for your own use; then do whatever you need to meet the requirements of the formal plan for readers outside of your own team.
How does your business use tactics to execute strategy?
This article was originally published on Bplans.