“Strategic planning or tactical mediocrity? Each firm has the choice.” This was the eye-catching headline of an article by Scott Clark, a sales consultant from Iowa. Now, think fast. Which is your company: (a) one with management that is strategically focused, constantly thinking in a strategic mode, watching for changes and opportunities in the world around you? Or, (b) does your management team spend their time putting out fires and dealing with the tactical, day-to-day, operational issues of the business?
Strategic planning is not a one day event. If your response was ‘b’, “dealing with the operational tactics that just keep the business going”, odds are that no one is strategically focused on the future of the business. Anyone devoting all of his time focused internally, dealing with inventory levels, equipment malfunctions, supplier and distribution issues, and human resources issues will be unable to focus strategically, missing the big picture so necessary for a successful and profitable future. Who is watching for opportunities on which to capitalize? This scenario is known as spending time working in your business, not on your business.
Tactical Mediocrity
Many firms think they are strategically focused. After all, they schedule a planning session every year. Doesn’t that make them strategically managed? Not by a long shot. Spending a day or two at a retreat and coming away with something passing for a strategic plan does not guarantee success or change the way a firm operates.
Do you routinely analyze the strengths that led you to the level of success you hold today? Do you analyze weaknesses that held you back from becoming more than an ‘OK’ company? If the answer to either questions is “No.” you would be hard pressed to expect anything to change. Why should you be more successful than you already are…assuming you are successful in the first place? Your core competencies may position you to merely maintain your status against competition. Or, they may position you to jump ahead when an opportunity arises. Will your competencies help or hinder your firm in finding new markets, developing and introducing new products or services?
A management team focused day in and day out on the status quo will doom a company to stagnate at that level indefinitely. It is not a good business practice to give attention only to immediate, short-term issues. Constantly operating in ‘putting out fires’ mode won’t allow a small business to grow and succeed. A portion of management’s focus must look to the outside, and to the future. That is where challenges and opportunities that can make or break your company will be found.
Strategic Thinking, Strategic Planning, Strategic Management
It is imperative for the firm that dreams of success to move their management team toward strategic thinking. This will be the first step to becoming truly strategically planned and managed. Of course, your company must deal with the day-to-day issues that keep it operating smoothly. Every small business has to do this to stay up and running. Just make sure that internal, tactical focus does not override and exclude that external, big picture focus critical for a strategic approach to success.
