Strategy vs. Tactics

Organizations create strategies to define overarching goals and how they intend to reach them. Tactics describe the individual steps and actions that allow the strategy to be carried out.

Aspect	Strategy	Tactics
Definition	– Strategy refers to a high-level plan or approach designed to achieve specific long-term goals or objectives. It outlines the direction an organization or individual intends to take to attain a competitive advantage or address challenges. – Strategies are typically broader, encompassing multiple actions and decisions.	– Tactics are specific actions, maneuvers, or methods employed to execute a strategy and achieve short-term goals. Tactics are the practical steps or techniques used to implement a strategy effectively. They focus on the “how” of achieving objectives.
Scope and Timeframe	– Strategy operates on a long-term or macro scale, typically spanning several years or even decades. It sets the overarching vision and direction for an organization or individual. – Strategies often address questions related to market positioning, resource allocation, and competitive advantage.	– Tactics are short-term in nature and are focused on the immediate or near-future actions required to support the execution of a strategy. They deal with day-to-day or short-term challenges and opportunities.
Level of Decision-Making	– Strategy decisions are typically made at the highest levels of an organization, such as by senior executives or the board of directors. These decisions have a profound impact on the organization’s overall direction.	– Tactics involve lower-level decisions made by managers and teams responsible for executing the strategy. They are more granular and detail-oriented, addressing specific tasks and actions.
Flexibility	– Strategy provides a framework for decision-making and goal-setting but allows for flexibility in how objectives are achieved. Strategies may be adjusted over time to adapt to changing circumstances.	– Tactics are more rigid and focused on specific tasks. While they can adapt within the framework of a strategy, they are less flexible in terms of changing the overall direction.
Alignment with Goals	– Strategy is directly aligned with an organization’s or individual’s long-term goals and overarching vision. It ensures that all actions and decisions support the achievement of those goals.	– Tactics are aligned with the short-term objectives and milestones that contribute to the overall strategy’s success. They serve as stepping stones toward achieving strategic goals.
Examples	– A company’s strategy may involve expanding into new markets, diversifying product offerings, or achieving cost leadership in the industry. – An individual’s career strategy might involve obtaining advanced degrees or gaining experience in specific industries.	– Tactics for a marketing campaign may include running targeted ads on social media, optimizing website content, or hosting webinars. – An individual’s tactics for career development might include attending networking events, updating a resume, or taking on new responsibilities at work.
Communication	– Strategy is communicated broadly to stakeholders and is often used to inspire and align teams toward common long-term goals. It provides a sense of purpose and direction.	– Tactics are communicated to specific teams or individuals responsible for execution. They detail the specific tasks, responsibilities, and timelines required to implement the strategy effectively.
Risk Assessment	– Strategy includes a broader risk assessment, considering potential challenges and opportunities on a long-term scale. It involves evaluating external factors, market dynamics, and competition.	– Tactics involve a more focused risk assessment, considering the immediate risks and uncertainties associated with executing specific actions.
Resource Allocation	– Strategy plays a crucial role in resource allocation decisions, determining where and how resources (such as budget, personnel, and time) will be allocated to achieve long-term goals.	– Tactics involve the allocation of resources for short-term actions. They determine how resources will be used efficiently to execute specific tasks and achieve immediate objectives.
Measuring Success	– Strategy success is typically measured against long-term key performance indicators (KPIs) that align with the overarching goals. These KPIs may include market share, profitability, or customer satisfaction over an extended period.	– Tactics success is measured by short-term KPIs and milestones. These KPIs are specific to the immediate objectives and tasks associated with the tactics. Examples include website traffic, conversion rates, or project completion timelines.
Adaptation to Change	– Strategy may require adaptation over time in response to changing market conditions, emerging trends, or shifts in the competitive landscape. Strategies should be flexible enough to accommodate adjustments.	– Tactics can be adapted more readily to address immediate changes and challenges. Teams may pivot tactics to respond to new information or unforeseen obstacles without altering the overall strategy.
Long-Term Sustainability	– Strategy aims to ensure the long-term sustainability and competitiveness of an organization or individual by setting a clear direction and vision. It guides decision-making over an extended period.	– Tactics contribute to short-term wins and progress, supporting the long-term success envisioned by the strategy. They are essential for maintaining momentum and achieving strategic goals incrementally.

Understanding the relationship between strategy and tactics

Strategy and tactics are military terms that have now made their way into business and professional contexts.

With that said, consider a quote from the Chinese military treatise The Art of War by Sun Tzu: “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”

From the above, we can surmise that strategy and tactics work to reinforce each other when used in unison.

Companies develop strategies to define their long-term goals and how they intend to fulfill their vision or mission.

Tactics are the often smaller, more sequential steps the business must perform to realize its strategy.

Some planners call them initiatives, but whatever the name, tactics usually incorporate best practices, resources, or concrete plans.

To further differentiate between strategy and tactics and how they may interact, consider the following statements:

1. Strategy is a long-term vision based on extensive research, while tactics concern more immediate, short-term actions. If a marketing strategy aims to improve social media engagement, one tactic may involve responding to every user comment. Strategies can be altered to reflect external conditions, despite assurances to the contrary. But a better way to increase the success of a strategy is to alter the tactics instead.
2. Strategy and tactics must be aligned to ensure the company is acting in accordance with its core values. There must be organization-wide awareness of what the company is doing, why it is doing it, and how (the tactics).
3. Strategy and tactics will never cover everything. Finite resources must be directed to the initiatives that will allow the company to achieve its goals in the most efficient manner.

Key Similarities between Strategy and Tactics:

• Goal-Oriented: Both strategy and tactics are goal-oriented and designed to achieve specific objectives and outcomes.
• Alignment: Both strategy and tactics are aligned with the overall mission and vision of the organization. They work together to ensure the organization’s efforts are coherent and directed towards its long-term goals.
• Implementation: Both are essential for effective execution. While strategy provides the overarching plan, tactics detail the specific actions and steps needed to execute the strategy successfully.
• Context-Dependent: Both strategy and tactics are influenced by external factors such as market conditions, competition, and internal factors like available resources and capabilities.

Key Differences between Strategy and Tactics:

• Time Horizon: Strategy focuses on long-term planning and defining the path to achieve significant objectives over an extended period (often years). Tactics, on the other hand, are short-term and address specific actions needed to achieve immediate or near-term goals (often months or quarters).
• Scope: Strategy is broader and more comprehensive, considering the overall direction and positioning of the organization in the market. Tactics are more narrow and detailed, focusing on specific actions for particular situations.
• Flexibility: Strategies are less flexible and undergo infrequent changes, typically during major shifts in business direction. Tactics are more adaptable and can be adjusted more frequently to respond to changing circumstances and feedback.
• Focus: Strategy is concerned with the “what” and “why” of the organization’s actions, addressing the big picture and long-term objectives. Tactics deal with the “how” of achieving goals, specifying the practical steps and approaches to implement the strategy.
• Level of Detail: Strategies are generally more abstract and high-level, providing a strategic framework for decision-making. Tactics are more detailed, providing specific instructions and guidance for execution.
• Role in Decision Making: Strategy plays a crucial role in guiding decision-making at the highest levels of the organization. Tactics are vital for operational decision-making and day-to-day activities.

Examples of strategy and tactics

Let’s conclude by taking a look at two examples of strategy and tactics in hypothetical real-world scenarios.

Education

In the first example, we have a school that is looking to improve its standardized test scores across every year level.

Strategy

To implement the smart education system in classrooms and connect and engage with the next generation of students via technology.

Tactics

• Purchase interactive displays, interactive whiteboards, and teacher training software.
• Onboard teachers to the technology and provide professional development for teachers to improve their delivery skills.

Local government

Local government, like all tiers of government, should be built on the cornerstones of responsiveness and accountability.

Here is the strategy and tactics for a government that wants to increase its transparency among ratepayers. 

Strategy

To meet transparency-based goals, government representatives convene and decide that a broader strategy emphasizing two-way communication is ideal.

This will enable the government to better understand ratepayer concerns, keep them informed of any developments, and provide clarity on where rates are spent.

Tactics

• Create a local government dashboard where constituent members can stay abreast of the government’s latest projects and keep it accountable.
• Create a marketing plan that outlines how ratepayers can communicate or interact with the government. The Hinchinbrook Shire Council, for example, developed a marketing plan that promoted council-owned services to create awareness in the community. These services, where locals can interact with council representatives, include art galleries, hireable venues, museums, and libraries.

Tactics in the Tech Business World

For years, I’ve been pondering the concept of what I like to call transitional business models.

According to this theory, there is no static business model a company sits on. 

Instead, a business model evolves with the organization’s short- and long-term goals. 

And a transitional business model works as a hook to keep the company grounded to existing market forces in the short term while it keeps evolving its business model as new market forces shape up!

That is one of the most powerful concepts of the Business Engineering Curriculum, which is worth internalizing to build successful digital/tech businesses!

A key go-to-market tactic that tech players have employed over the years to enable their long-term strategy is microniching.

Take the case of a company that, when launching its operations, instead of going broad, goes narrow.

In business, this is known as niching down or microniching.

The premise of this tactic is that you want to narrow the existing market substantially (especially in the very early days) to create options to scale later down the road.

A classic example is how Tesla entered the EV industry by building a sports car intended to reach a few hundred people.

Tesla could have tried to build, right on, a mass-market EV car (like many existing players had done).

But due to a lack of resources, technology development, and market dynamics, Tesla went for the smallest possible option within an existing market.

The Roadstar was a critical stepping stone in developing the Tesla business model.

However, it answered a specific question: “can we build a viable EV sports car that is both performant and aesthetically appealing?”

Once Tesla could answer positively to that question by placing the first Tesla Roadsters on the market, it moved to the second stage.

It launched the Model S, which was supposed to answer another question:

“Can we scale EV manufacturing to a market segment that is interested in EVs beyond performance?”

Once it achieved the first level of scale, Tesla launched a new model, the Tesla Model 3, the main goal was to gain mass manufacturing!

It took 15 years of short-term pivots to achieve its long-term strategy.

Yet, at this stage, the question underlying the Tesla business model also radically changed.

The core question is, “can we mass-manufacture EVs to distribute them globally?”

In other words, the underlying question of the transitional business model has changed over the years, as follows:

• Tesla Transitional Business Model 2003-2008: Can we build a viable, performant, aesthetically appealing EV?
• Tesla Transitional Business Model 2008-2017: Can we build a model which is appealing to a larger audience while scaling up manufacturing?
• Tesla Transitional Business Model 2017-2020: Can we scale up manufacturing?
• Tesla Transitional Business Model 2020-forward: Can we manufacture at mass scale?

Additional Case Studies

• Apple:
  • Strategy: Position Apple products as the intersection of technology and the liberal arts, emphasizing user-friendly design and an integrated ecosystem.
  • Tactics:
    • Launch of the Apple Store, providing a space for customers to experience the brand firsthand.
    • Introduction of the “Think Different” marketing campaign to differentiate Apple from competitors.
    • Continual hardware and software integration, such as the seamless pairing of AirPods with iPhones.
• Starbucks:
  • Strategy: Become the third place between work and home for customers.
  • Tactics:
    • Offer free Wi-Fi in all its stores.
    • Design stores with comfortable seating, ambient music, and a warm atmosphere.
    • Introduction of a loyalty program and mobile app to enhance customer experience.
• Netflix:
  • Strategy: Become the primary source of entertainment for global audiences by transitioning from a DVD rental service to a streaming giant.
  • Tactics:
    • Invest heavily in original content to attract and retain subscribers.
    • Use data analytics to understand viewer preferences and make programming decisions.
    • Expand service to over 190 countries and offer localized content.
• Nike:
  • Strategy: Inspire every athlete in the world (and if you have a body, you’re an athlete).
  • Tactics:
    • Collaborate with high-profile athletes for product endorsements.
    • Introduce innovative products like self-lacing shoes and sustainable materials.
    • Engage customers with community-building initiatives like the Nike Training Club.
• Amazon:
  • Strategy: Be the Earth’s most customer-centric company, where people can find and discover anything they want to buy online.
  • Tactics:
    • Offer Amazon Prime, a subscription service with benefits like free two-day shipping, streaming, and more.
    • Use sophisticated algorithms to provide personalized shopping recommendations.
    • Diversify into new industries, like groceries with the acquisition of Whole Foods.
• Coca-Cola:
  • Strategy: Deliver happiness and moments of refreshment to consumers globally.
  • Tactics:
    • Engage in global marketing campaigns like “Share a Coke” to personalize the beverage experience.
    • Introduce new product variations, such as Coca-Cola Zero Sugar, to cater to changing consumer tastes.
    • Collaborate with restaurants, theaters, and other venues for exclusive beverage partnerships.
• Spotify:
  • Strategy: Make music accessible and enjoyable for everyone and provide a platform for artists to be heard.
  • Tactics:
    • Offer both free (ad-supported) and premium subscription models.
    • Use algorithms and curated playlists to introduce users to new music based on their preferences.
    • Collaborate with artists for exclusive releases and Spotify Sessions.

Key takeaways:

• Organizations create strategies to define overarching goals and how they intend to reach them, while tactics describe the individual steps and actions that determine how the strategy will be accomplished.
• Strategy is a long-term vision based on extensive research, while tactics concern more immediate, short-term actions. While strategies can be altered to reflect external conditions, it tends to be easier and more cost-effective to alter the tactics within a strategy instead.
• A school that wants to improve student test scores may develop a strategy that calls for smart technology implementation in classrooms. Tactics that support this strategy include teacher training, professional development, and the purchasing of interactive displays and whiteboards.

Strategy vs. Tactics: The Big Picture

• Definitions:
  • Strategy: Overarching plan or set of goals. It answers the “what” and “why” of achieving objectives.
  • Tactics: Specific actions or steps taken to achieve a strategy. It answers the “how.”
• Perspective:
  • Sun Tzu in “The Art of War”: “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”
• Timeframe:
  • Strategy: Long-term.
  • Tactics: Short-term.
• Scope:
  • Strategy: Broader, encompassing the overall direction.
  • Tactics: Narrower, focused on specific actions and situations.
• Flexibility:
  • Strategy: Less flexible and more stable.
  • Tactics: More adaptable to changing situations.
• Examples:
  • Education:
    • Strategy: Implement smart education systems to improve test scores.
    • Tactics: Purchase interactive displays and whiteboards; provide teacher training.
  • Local Government:
    • Strategy: Increase transparency among constituents using two-way communication.
    • Tactics: Develop a local government dashboard; create a marketing plan to engage the public.
  • Tech Business – Tesla:
    • Strategy: Revolutionize the electric vehicle (EV) industry.
    • Tactics: Start with a niche high-performance EV (Roadster) to test viability; scale manufacturing with subsequent models.

What is the difference between strategy and tactics with example?

Whereas a strategy looks at the long-term. A tactic looks at the short-term. Sometimes, a tactic can be aligned with the long-term strategy (a linear tactic). In other cases, a tactic might seem misaligned with the long-term strategy (which we can define as a counter-intuitive tactic). Take the example of a tactic called microniching. To enter a market, a company can substantially narrow down the market – on purpose – so it can restrict the commercial use case, thus creating, over time, options to scale and achieve its long-term strategy.

What comes first strategy or tactics?

Usually, a strategy comes first, as it defines the organization’s long-term goal. Instead, tactics are short-term steps a company can take to get closer to its strategy. Indeed, tactics might be easily implemented quickly (days or months). A strategy to be fully executed and rolled out might take years, if not decades.

What is the difference between strategic and tactical thinking?

Whereas strategic thinking focuses on aligning the organization to its long-term goals. Tactical thinking helps the organization to be successful in the short term. To successfully roll out a business strategy, tactical thinking can be the short-term engine that gives the company the needed burst to survive and thrive in the short term to get closer to its longer-term vision.

Connected Strategy Frameworks

ADKAR Model

Ansoff Matrix

Business Model Canvas

Lean Startup Canvas

Blitzscaling Canvas

Blue Ocean Strategy

Business Analysis Framework

BCG Matrix

Balanced Scorecard

Blue Ocean Strategy 

GAP Analysis

GE McKinsey Model

McKinsey 7-S Model

McKinsey’s Seven Degrees

McKinsey Horizon Model

Porter’s Five Forces

Porter’s Generic Strategies

Porter’s Value Chain Model

Porter’s Diamond Model

SWOT Analysis

PESTEL Analysis

Scenario Planning

STEEPLE Analysis

SWOT Analysis

Related Strategy Concepts: Go-To-Market Strategy, Marketing Strategy, Business Models, Tech Business Models, Jobs-To-Be Done, Design Thinking, Lean Startup Canvas, Value Chain, Value Proposition Canvas, Balanced Scorecard, Business Model Canvas, SWOT Analysis, Growth Hacking, Bundling, Unbundling, Bootstrapping, Venture Capital, Porter’s Five Forces, Porter’s Generic Strategies, Porter’s Five Forces, PESTEL Analysis, SWOT, Porter’s Diamond Model, Ansoff, Technology Adoption Curve, TOWS, SOAR, Balanced Scorecard, OKR, Agile Methodology, Value Proposition, VTDF

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