Develop the business strategy, allocate the budget and prioritize the initiatives which enable the strategy, are critical success factors for organizations.

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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…

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.