Tactical management involves choosing an appropriate course of action to achieve a strategic plan or objective. Therefore, tactical management comprises the set of daily operations that support long strategy delivery. It may involve risk management, regular meetings, conflict resolution, and problem-solving.
Understanding tactical management
Monash University defines tactical management as “the administrative process of selecting among appropriate ways and means of achieving a strategic plan or objective. The use of tactical management in a business environment allows a manager to choose the best tactics or methods for each situation that arises, rather than following a particular standard procedure.“
In understanding tactical management, it is helpful to differentiate it from strategic management. This is referenced in the above quote as “standard procedure”, which usually refers to creating a strategy that sets the direction for the organization as a whole. Strategic management also defines roles, responsibilities, and the commitment of resources.
Tactical management, on the other hand, encompasses the daily operations that support long strategy delivery. It may involve risk management, regular meetings, conflict resolution, and problem-solving.
Tactical management often necessitates that a quick decision is made using tactics that are best suited to the particular situation. Conversely, strategic management requires thought, discussion, and planning. Or, as we saw earlier, the following of standard procedure.
Examples of tactical management tasks
Following is a look at two strategic goals and the tactical management tasks that may underpin them.
1 – Recruiting, developing, and then retaining a diverse and suitably experienced staff cohort:
- Establish a compensation benchmark based on industry salary data.
- Occupy a booth at a school or university job expo and liaise with a diverse range of student bodies.
- Regularly measure employee job satisfaction and engagement through surveying.
- Create an exit interview program to better understand the reasons for a high-performer seeking employment elsewhere.
- Provide training for managers to identify and allocate funds for employee upskilling or recertification.
2 – The implementation of flexible work arrangements:
- Start by conducting a thorough review of the industry to determine the feasibility of flexible work arrangements.
- From the list of feasible options, survey employees on which they deem is the most interesting.
- For the option to be implemented, develop a policy and procedure framework.
- Review the implementation framework annually in light of changing or extenuating circumstances.
Tactical management in investing
Using a tactical approach, investors intend to take advantage of daily market conditions using a range of acceptable percentages in each broad asset class.
On a red day, the intent is to act more defensively and reduce equity exposure. On a green day, however, the tactics pivot toward utilizing the higher end of each asset class.
- Tactical management involves selecting the appropriate course of action to achieve strategic goals or objectives.
- Tactical management encompasses day-to-day operations such as conflict resolution, problem-solving, staff training, and the definition of roles, responsibilities, and procedures.
- Tactical management is also useful for stock market investors whose primary strategy is supported by managing daily market volatility.
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