Strategy Requires Thought,Tactics Require Observation
July 20th 2008 23:07
“Strategy requires thought, tactics require observation”
(Max Euwe)
This is a very important yet seldom thought about concept. Often the term Strategy is thrown around haphazardly, and even the idea of what a Plan consists of is up for debate!
I often find that many people have tactics and strategy confused. I also often find that most people have no strategy and miss tactical shots all the time!
For example, if you are not doing proper accounting you are making a tactical error, that will lead to a strategic weakening.
I have a real life story about this very problem. A person I know opened a business, and did a lot "under the table". He was under the impression that this was a great "tactic" for business, and was his main "strategy". He did not think of it in those terns though. So the day came when he wanted to sell his business after building it up to a certain point. How did he decide what to sell it for?
As you know, there are formulas based on the company's accounting to determine the "Value of a Firm". But if your accounting is all "cooked" how do you do it?
Well, he picked a number I suppose and ended up not being able to sell it.
So the moral of the story is that even if you have a great "strategy" and tactical miss-step will cost you. To avoid a tactical mistake, simply observe!
Let's quickly look at Starbucks. They use their logo and store placements to increase and solidify the Exposure Effect. That is a Tactic to reach a Strategic Competitive Advantage. Now they are basically the most recognized brand on the planet.
Their use of cluster bombing is a tactic that will drive out the competition in a particular location, this leads to a SCA in that location. After their dominance in that location is solidified they will then close the redundant stores. Simple, as are most winning ideas.
If you keep that process going eventually you will dominate all of the market. As they have. That is not the only trick in their bag though.
(Max Euwe)
Max Euwe Chess Grandmaster
This is a very important yet seldom thought about concept. Often the term Strategy is thrown around haphazardly, and even the idea of what a Plan consists of is up for debate!
I often find that many people have tactics and strategy confused. I also often find that most people have no strategy and miss tactical shots all the time!
For example, if you are not doing proper accounting you are making a tactical error, that will lead to a strategic weakening.
I have a real life story about this very problem. A person I know opened a business, and did a lot "under the table". He was under the impression that this was a great "tactic" for business, and was his main "strategy". He did not think of it in those terns though. So the day came when he wanted to sell his business after building it up to a certain point. How did he decide what to sell it for?
As you know, there are formulas based on the company's accounting to determine the "Value of a Firm". But if your accounting is all "cooked" how do you do it?
Well, he picked a number I suppose and ended up not being able to sell it.
So the moral of the story is that even if you have a great "strategy" and tactical miss-step will cost you. To avoid a tactical mistake, simply observe!
Let's quickly look at Starbucks. They use their logo and store placements to increase and solidify the Exposure Effect. That is a Tactic to reach a Strategic Competitive Advantage. Now they are basically the most recognized brand on the planet.
Their use of cluster bombing is a tactic that will drive out the competition in a particular location, this leads to a SCA in that location. After their dominance in that location is solidified they will then close the redundant stores. Simple, as are most winning ideas.
If you keep that process going eventually you will dominate all of the market. As they have. That is not the only trick in their bag though.
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