When I’m helping businesses develop strategic plans, I frequently talk about goals, strategies and tactics. The three are different things, but they’re also inter-related. In this article I’ll show you the difference between goals, strategies and tactics and explain why you need all three.
What are your goals?
In your business, you should have some goals. Sometimes you’ll also hear these referred to as ‘Objectives’. Ideally you’ll have a number of very defined goals that are important to achieve. Your business goals could be:
- Financial goals – “To achieve revenue of $XX” or “Profit of $Y”.
- Staffing goals – “To have XX number of staff” or “To have a full time staff member in the position of XYZ”.
- Goals about market share – “To have XX% market share of the XYZ market”.
There are a lot of different types of goals or objectives you can set. The important thing is to make sure they’re measurable, and contain a deadline for achievement.
What is Strategy?
The next step is to look at strategy. Let’s assume one goal is built around selling a certain number of your product. Strategy looks at the ways you could do this. You may have more than one strategy for each goal or objective you have.
So a strategy could be to market your product to a certain type of user. It could be about introducing a new product or service to meet the needs of your target market.
In later articles we’ll concentrate more on different strategies to grow your business.
Tactics – how you’ll do it
Tactics are the last piece of the puzzle. For every strategy, there will be a number of tactics. These are the individual steps you’ll take to execute the strategy and achieve your goals.
Tactics could be based around activity i.e. every week contact X number of customers. They’re the steps you need to take to achieve a goal.
When deciding on your tactics, include every step you can think off and decide on when the step is due to be completed, and who is responsible for completing it.
Goals, Strategy and Tactics – an example
Let’s assume one of your goals is to increase your revenue.
One strategy you may adopt to do this is to create a new product. In this example, your strategy is to create an e-book on retirement planning that you can sell to increase revenue.
Let’s think through the tactics (or steps) you need to do to write the e-book. Your tactics may include:
- Decide on a topic for the book
- See who your competition is and analyze their products
- Decide on the relevant content to include
- Find sources for the content
- Write a chapter a week (or outsource this)
- Find a designer to help with the design of the book
- Decide how you’ll distribute the book
- Complete the book by XYZ date
- Have the book for sale by a certain date
- Develop a marketing plan to promote the book
Tactics are usually inter-related and you’ll find yourself working on a couple of active tasks at any one time. In the example above, you may be writing chapters for your book, but you’ll also be working on a plan to market the book once it’s complete.
So that’s a brief overview of the difference between your goals, strategy and tactics. Your homework for today is to take some time out to think about your goals, and work on at least one strategy and set of tactics.
Leave a comment below to let me know how you go.