On September 26, I blogged about the distinction between a strategy and a tactic. In short, a strategy is a planthat describes how resources are organized and focused over the long haul to achieve important aims. Tactics are the actions that bring a strategy to life.
A strategy without action is not useful. Likewise, tactics performed in the absence of a coordinated plan are like closing one’s eyes and throwing a dart at the board in hopes of hitting a bullseye.
I also emphasized that, though we may not realize it, the vast majority of us spend our waking hours executing tactics – not creating strategies. That’s ok. After all, tactical execution is what makes strategies work.
Of all the tactical actions that a firm takes, some of those actions are so important to the success of the firm in the market that they are said to be strategic, i.e. critical components of the firm’s plan. All strategies are comprised of tactics; but not all tactics are strategic to the firm.
The Canary in the Cage
There’s a simple test to tell if a tactic is vital to the success of a strategy: simply stop doing it and see what happens.
If a tactic is critical, stopping it (or altering it in a significant way) will soon affect the firm’s performance. If the tactic is not integral to the firm’s strategy, then the strategy will continue to perform (though perhaps with some inconvenience or inefficiency).
To illustrate this, look no further than what happened to Coca-Cola when it altered its taste formulation in 1985, weeks later, they were forced to introduce Coca-Cola Classic in response to consumer backlash. Or, more recently, consider what happened when Netflix changed its pricing model, and then decided to separate its streaming and mail order businesses.
Looking at What We Do
Working at something that is recognized as being essential to a firm’s strategy translates into job security. Being great at it is the best job security one can have.
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