Ten Reasons to Balance Strategic and Tactical Thinking

For years, I have advocated balancing strategic thinking with tactical thinking and incorporating the best of both worlds. So many times, I was told that we were in some crisis mode, so the only thing we could do was tactical, but in my mind, that was nothing more than an excuse. Often, leaders feel that they need a crisis to show what they were made of, and that’s why they get the big bucks.

Unfortunately, they often save the day but cost everyone else in the company something they were not anticipating. This frequently includes layoffs, restructuring, or even dissolution of the company. Just look at the history of layoffs in the tech industry over the last two years. When looking at an opportunity, it is easy to get captured by the glory instead of anticipating the downside of the curve in the longer term, and yes, it always happens.

Leaders will try to tell you that they don’t have a crystal ball, and I usually respond that no one has one, so use your common sense and adapt as you go. Don’t be afraid of making the tough choices early rather than later because the cost will usually be less severe.

There was a term developed years ago that embodies the need for balancing strategy and tactical. It is “STRATACTICAL.” This process should be taught in all graduate-level business courses because it implies that the two terms are not mutually exclusive as we see them used today.

Balancing strategic thinking with tactical thinking is crucial for the success and sustainability of any business.

Here are my ten reasons why this balance is essential:

1. Achieving Long-term Goals: Long-term goals are often nothing more than a wish list or something fancy to hang on the office’s wall. However, these should flow from the vision and purpose of any company. Strategic thinking focuses on setting long-term goals and direction for the business. Balancing this with tactical thinking ensures that the company sets these goals and takes actionable steps to achieve them.
2. Adaptability: Every market of products or services today is volatile and chaotic because of changes in culture and technology. Therefore, in a rapidly changing market, businesses need to be adaptable. Strategic thinking allows a company to foresee changes and plan for the future, while tactical thinking ensures the company can make rapid adjustments to navigate these changes successfully.
3. Resource Optimization: If the IT industry had paid attention to the life cycle of products and services over the last five years, the layoffs would not have been necessary because, using “STRATACTICAL” thinking, they could have recognized the trends and rebalanced the workforce. Balancing both approaches helps in optimizing resources. Strategic thinking ensures resources are allocated to pursue long-term objectives, while tactical thinking ensures resources are efficiently used in day-to-day operations.
4. Risk Management: Strategic thinking involves identifying potential risks and opportunities for the future. Tactical thinking helps implement risk management strategies and mitigate risks daily, thus protecting the business from possible threats.
5. Enhanced Decision Making: Combining strategic with tactical thinking enhances decision-making at all levels. Strategic decisions set the course, while tactical decisions navigate the immediate challenges and opportunities. This allows for adaptation and flexibility while staying focused on sustainable growth, which should be the aim of every company.
6. Improved Performance: Tactical thinking focuses on short-term targets and performance metrics. Balancing this with strategic thinking ensures that these short-term achievements contribute to the business’s long-term success and growth. This emphasis should allow the culture to develop an exciting and rewarding flow for all employees.
7. Competitive Advantage: A business that balances strategic and tactical thinking is better positioned to identify unique differentiation and competitive advantage opportunities, leveraging both long-term vision and short-term actions. When a company focuses only on strategy, it misses opportunities right before them. On the other hand, when a company is only focused on tactical growth, they often miss the longer-term and more sustainable opportunities. Choose wisely. It is possible to do both.
8. Employee Alignment and Engagement: This balance helps align the employees with the company’s vision and objectives. Strategic thinking communicates the direction and purpose, while tactical thinking involves employees in the execution, enhancing engagement and motivation. To ensure that you have a healthy organization, everyone should have a role in the changes to both strategic and tactical planning and implementation.
9. Market Responsiveness: Tactical thinking allows a business to respond and adapt quickly to market and customer changes. When balanced with strategic thinking, the company ensures that these responses align with long-term goals. STRATACTICAL thinking allows all stakeholders to see the market through their eyes and recommend adjustments and additions to the overall company lifecycle. It can even allow companies to add or divert their focus should something massive occur in the supply chain, requiring a significant shift in direction.
10. Sustainability: Finally, balancing strategic and tactical thinking contributes to the sustainability of the business. It ensures that the company is focused on immediate profits and success and investing in future growth and adaptability.

In conclusion, balancing strategic and tactical thinking is essential for navigating the complexities of today’s business environment. It enables businesses to pursue long-term growth while managing day-to-day operations and challenges effectively.

Where companies are focused on building a sustainable brand or service, being STRATACTICAL will ensure that they have a chance to make that legacy. It will allow their stakeholders to build solid relationships and progressively grow their careers.

However, it will not help if the leadership is focused on flipping the company in five years. Many companies are started today with that in mind, and the only ones who gain from it are the founders, so employees need to apply this same mentality when working for one of these. Go into these types of companies with eyes wide open, and be prepared to grab as much non-proprietary knowledge and experience as possible before you leave.

My challenge to you is to analyze how you are running things today and choose to make a change for the better.