Develop the business strategy, allocate the budget and prioritize the initiatives which enable the strategy, are critical success factors for organizations.
Traditional View
The Strategy is the highest level of an initiative and defines the overall direction for the organization to achieve a goal.
The Tactics are (lower) details in an initiative and define all the decisions/actions to deploy resources to implement the strategy.
But…
- Where does “Strategy” end?
- Where do “Tactics” begin?
- Is there really a “one-2-many” relationship between Strategy & Tactic(s)?
Theory of Constraints’ View by Dr. Goldratt
The Strategy is the answer to the question: “What for?” – i.e. the objective of a proposed change to achieve a higher goal.
The Tactic is the answer to the question: “How to?” – i.e. the specific decisions/actions needed to achieve the objective of this change.
A clear structure of the S&T tree is needed in order to represent all the changes we believe are necessary & sufficient and the sequence in which we believe they should be done to achieve a goal.
The implementation of the S&T tree will support the companies to remove the typical “Engines of Disharmony” and preventing the “Local Optima” initiatives.