What is strategy? In simple terms, please explain me like I'm 4 year old. Saving Changes...
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Steve HillPrinciple Consultant| LiquidHub IncReading, Pa, United States
Good question. Think of it as long term planning vs short term planning (tactical or reactionary). Most companies want to establish long term plans that define where they want to be in 1, 3 and 5 years. To support the business planning , the various departments - IT, Product Development, Sales, etc. - must each develop strategies in support of the long term plan. These strategies must include direction, staffing, finance, etc.; all of the elements that are needed to successfully gaze into the crystal ball. Saving Changes...
So, it's like to planning a trip?
I decide to make a trip from Portugal to UK. I want to be in UK at the end of the next week. Therefore, my objective is "be in UK at the end of the next week"
The strategy then goes by defining how I will get there. Do I take a flight? How do I get the flight? Do I go by car, bus or taxi to the airport? When should I start to pack my bags? What clothes will I take?
It something like this? Saving Changes...
Steve HillPrinciple Consultant| LiquidHub IncReading, Pa, United States
With the trip analogy - I'd suggest that the goal of the trip, maybe "work in the UK" is the strategic goal. The trip itself is the tactical plan. The over arching goal is strategic, the process for getting there (immediate goals) is tactical.
If a company decides to increase revenues by 200%, they would also need to map out the steps to to get there. The defined steps that enable the company to achieve this would be the tactical plans (short term) to satisfy the strategic goal (long term). Saving Changes...
Senior Advisor to the CEO| PMISterling, Va, United States
I agree with what you've said, but I'd refine it a touch.
Strategy is is planning (ongoing, iterative) for a long term goal. That goal is broken down into objectives. Then there is tactical planning to achieve those objectives.
Often projects have strategic impacts, but their execution is more tactical in nature.
So, Dave, you say that strategy is the planning for the long term goal, whereas Steve says that strategy is the long term goal?
I'm fair away to have a epiphany about strategy :)
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Hans RobbersSenior Director| SalesforceVlissingen, Netherlands
Let see if I can conuse you a bit more ;-)
A strategy consists of a goal and an apporach to achieve this goal. In this perspective Dave, if you replace the word planning with approach. The approach set out the steps to achieve your goals. These steps can be broken down in projects, activities, etc to be planned. After achieving a step to validate if the strategy is still aiming at the strategic goal. In case not you need to adjust your strategy.
What happens in the discussion is Steve focussing on the goal whilst Dave focus on the approach. Both are required.Which comes first is a chicken and egg riddle
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