# data[].attributes.body
Short term planning that stresses the current organizational operations of different parts of the company and is usually generated in areas of production, marketing, personnel finance, and plant facilities.

# data[].attributes.attachment_link.readable_text
Operations >> Browse Articles >> Strategy

David Brydson | BestFit Solutions

Many small business owners and operators do not spend much time planning for their business success. The biggest reason, in my opinion, is that they are not aware how easy it can be. Most owners, when they hear the words Strategic Planning or Tactical Planning, get a glazed-eyed look on their faces. Actually, these can be rather simple tasks to manage if you understand a few things about them. Instead most business operators are in a state of confusion about what each of these terms mean.

The reason for this confusion stems from the fact that both words are closely connected and, unfortunately, used interchangeably. Yet, in business terminology, the words strategy and tactics refer to separate business functions and practices.

Strategy Sets the Stage In real world business usage, the term Strategy actually is the thinking process required to plan a change, course of action, or organization. Strategy defines, or outlines, the desired goals and why you should go about achieving them. The strategic planning phase involves business thinkers (namely you - the small business owner) determining why, and in a global sense what, you will achieve in your stated goals. Owners or upper management decide what the guiding philosophy and values will be, and how people involved in the businesses operations should act, in attaining their objectives. It can be a compilation of many complex multi-faceted plans created for achieving your pre-established objectives.

But Tactics Is the Play Tactics are the specific actions you take in implementing your strategy. These actions comprise what is to be done, in what order, using which tools and personnel. You may employ a number of tactics and involve many different departments and people in this effort to reach a common goal. You may even recruit suppliers to accomplish your objectives. Tactics typically requires the involvement of the organization as a whole.

Strategic Planning Process To understand the differences better, here are some notable points to consider, with respect to strategic planning. When doing strategic planning, you need to determine, specifically, what outcome you want to achieve (These are your Objectives) and how you will measure the results.

In addition, you need to establish a realistic baseline or starting point. (Where are you now?) Include in your planning a picture of internal and external realities that will impact your plan. This dictates that you do relevant research (competitive, market, etc). You will then need to craft an aggressive action plan to take advantage of opportunities discovered during your research. This will include a listing of your defined strategic objectives, with the tactics you expect to use to achieve them. The plan should reflect both perceived challenges and the expected end results in order to be complete.

To ensure support for the strategy, it is advisable to conduct consensus-building exercises for the company. You might include Marketing, Sales, Customer Service, and other personnel inside and outside your organization. Any uncertainties and risks will be sure to surface at this point in the strategic planning process.

Tactical Planning Process In tactical planning, you need to understand and decipher the strategic goals; then identify the courses of action you will need to achieve those strategic objectives. Tactical planning is developed by those who deal with getting the work done, day by day. They draw up a tactical plan so they know what to do, when they need to do it, and this will help them deal with the "how" part of the plan. The main question for them is: "How can the strategic goals be accomplished within the designated limits of resources and authority?" The only way that can happen is to insure that the tactics create results which lead to the strategic benefits you desire.

As a small business owner, you need to make plans that include specific activities that are arranged on specified time frames and have specific outcomes. Ensure the performance of all tactical planning activities and calculate their effects; then help connect the tactical moves to the strategic plan.

In Summary To sum up, strategic planning relates to issues pertinent to the mission of your small business-the purpose of its existence. The responsibility for strategic planning rests with you (and your partners and investors, if any). No one else is ever going to do that work for you, or without your involvement!

Tactical planning relates to actions taken day-to-day, and whose results will move the company forward to achieve the objectives outlined in the strategic plan. The responsibility to plan this belongs to those who perform the work. They are truly the only ones qualified to plan it. Strategic is the what and why. Tactical is the how.

The terms tactical and strategic are fundamental to an understanding of the different responsibilities attached to management and governance of any small business. If you fail to do this for your company, then you are driving a 1000 mile race without a roadmap. If you don't know where you are going, or how you are going to get there, then where you end up will most likely not be where you hope.

No destination is the destination of the un-destinated!

If you would like help with any part of the planning process or implementation of your plan, please contact BestFit Solutions. As frequent travelers of this road, we can provide a map to make sure you end the race, exactly where you want to be.

# data[].attributes.attachment_link.keywords[]
strategic business planning for small business

# data[].attributes.attachment_link.title
Strategic and Tactical Planning: Understanding the Difference

# data[].attributes.attachment_link.description
Many small business owners and operators do not spend much time planning for their business success. The biggest reason, in my opinion, is that they are not aware how easy it can be. Most owners, when they hear the words Strategic Planning or Tactical Planning, get a glazed-eyed look on their faces.

# data[].attributes.body
A development tool organization to determine its internal strengths and weaknesses, as well as its external opportunities and threats.

# data[].attributes.attachment_link.readable_text
Credit: patpitchaya/Shutterstock

A successful business is founded on a series of sound decisions, so the way you analyze situations and choose to react is essential. When trying to assess the lay of the land, few tools are more useful than the SWOT analysis. It stands for strengths, weaknesses, opportunities, and threats; the SWOT analysis is a planning process that allows your company to overcome challenges and determine what new leads to pursue.

The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in a decision. This method was created in the 1960s by Edmund P. Learned, C. Roland Christensen, Kenneth Andrews and William D. Book in their book " Business Policy, Text and Cases" (R.D. Irwin, 1969).

"It is impossible to accurately map out a small business's future without first evaluating it from all angles, which includes an exhaustive look at all internal and external resources and threats," said Bonnie Taylor, chief marketing strategist at CCS Innovations. "A SWOT accomplishes this in four straightforward steps that even rookie business owners can understand and embrace."

You could employ SWOT before you commit to any sort of company action, whether you're exploring new initiatives, revamping internal policies, considering opportunities to pivot, or altering a plan midway through its execution. Sometimes it's wise to perform a general SWOT analysis just to check on the current landscape in which your business finds itself. Performing a SWOT analysis is also a great way to improve business operations, said Andrew Schrage, partner and editor-in-chief of Money Crashers.

"It allowed me to identify the key areas where my organization was performing at a high level, as well as areas that needed work," said Schrage, who expanded on his thoughts about business decision making in a blog post. "Some small business owners make the mistake of thinking about these sorts of things informally, but by taking the time to put together a formalized SWOT analysis, you can come up with ways to better capitalize on your company's strengths and improve or eliminate weaknesses."

While the business owner should certainly be involved in creating a SWOT analysis, it could be much more helpful to include other team members in the process. Shawn Walsh, founder and CEO of Paradigm Computer Consulting, said his management team conducts a quarterly SWOT analysis together.

"The collective knowledge removes blind spots that, if left undiscovered, could be detrimental to our business or our relationship with our clients," Walsh said.

A SWOT analysis focuses on the four elements comprising the acronym, allowing companies to identify the forces influencing a strategy, action or initiative. Knowing these positive and negative elements can help companies more effectively communicate what parts of a plan need to be recognized.

When drafting a SWOT analysis, individuals typically create a table split into four columns to list each impacting element side-by-side for comparison. Strengths and weaknesses won't typically match listed opportunities and threats, though they should correlate somewhat since they're tied together in some way. Billy Bauer, managing director of Royce Leather, noted that pairing external threats with internal weaknesses can highlight the most serious issues faced by a company.

"Once you've identified your risks, you can then decide whether it is most appropriate to eliminate the internal weakness by assigning company resources to fix the problems, or reduce the external threat by abandoning the threatened area of business and meeting it after strengthening your business," Bauer said.

The first two letters in the acronym, S (strengths) and W (weaknesses), refer to internal factors, which means the resources and experience readily available to you. Examples of areas typically considered include:

Financial resources (funding, sources of income, investment opportunities)

Physical resources (location, facilities, equipment)

Human resources (employees, volunteers, target audiences)

Access to natural resources, trademarks, patents and copyrights

Current processes (employee programs, department hierarchies, software systems)

External forces influence and affect every company, organization and individual. Whether these factors are connected directly or indirectly to an opportunity or threat, it is important to take note of and document each one. External factors typically reference things you or your company do not control, such as:

Market trends (new products and technology, shifts in audience needs)

Economic trends (local, national and international financial trends)

Funding (donations, legislature and other sources)

Demographics

Relationships with suppliers and partners

Political, environmental and economic regulations

Once you fill out your SWOT analysis, you will need to come up with some recommendations and strategies based on the results. Linda Pophal, owner and CEO of Strategic Communications consulting firm, said these strategies should be focused on leveraging strengths and opportunities to overcome weaknesses and threats.

"This is actually the area of strategy development where organizations have an opportunity to be most creative and where innovative ideas can emerge, but only if the analysis has been appropriately prepared in the first place," Pophal said.

Bryan Weaver, a partner at Scholefield Construction Law, was heavily involved in creating a SWOT analysis for his firm. He provided Business News Daily with a sample SWOT analysis template used in the firm's decision to expand its practice to include dispute mediation services.

STRENGTHS

Construction law firm with staff members who are trained in both law and professional engineering/general contracting. Their experience gives a unique advantage.

Small (three employees) - can change and adapt quickly

WEAKNESSES

No one has been a mediator before or been through any formal mediation training programs.

One staff member has been a part of mediations but not as a neutral party.

OPPORTUNITIES

Most commercial construction contracts require mediation. Despite hundreds of mediators in the marketplace, only a few have actual construction experience.

For smaller disputes, mediators don't work as a team, only as individuals; Scholefield staff can offer anyone the advantage of a group of neutrals to evaluate a dispute

THREATS

Anyone can become a mediator, so other construction law firms could open up their own mediation service as well.

Most potential clients have a negative impression of mediation, because they feel mediators don't understand or care to understand the problem, and rush to resolve it.

Resulting strategy: Take mediation courses to eliminate weaknesses and launch Scholefield Mediation, which uses name recognition with the law firm, and highlights that the firm's construction and construction law experience makes it different.

"Our SWOT analysis forced us to methodically and objectively look at what we had to work with and what the marketplace was offering," Weaver said. "We then crafted our business plan to emphasize the advantages of our strongest features while exploiting opportunities based on marketplace weaknesses."

The SWOT analysis is a simple, albeit comprehensive strategy for identifying not only the weaknesses and threats of a plan but also the strengths and opportunities it makes possible. However, a SWOT analysis is just one tool in the strategy toolbox. Additional analytic tools to consider include PEST (political, economic, social and technological), MOST (mission, objective, strategies and tactics) and SCRS (strategy, current state, requirements and solution) analyses.

SWOT can also prompt businesses to examine and execute strategies in a more balanced, in-depth way. The following websites can help you conduct a thorough SWOT analysis of your own business:
Additional reporting by Adam C. Uzialko. Some source interviews were conducted for a previous version of this article.

Nicole Fallon

Nicole received her Bachelor's degree in Media, Culture and Communication from New York University. She began freelancing for Business News Daily in 2010 and joined the team as a staff writer three years later. Nicole served as the site's managing editor until January 2018, and now leads Purch's B2B copy and production team. Reach her by email, or follow her on Twitter.

# data[].attributes.attachment_link.title
SWOT Analysis: What It Is and When to Use It

# data[].attributes.attachment_link.description
A successful business is founded on a series of sound decisions, so the way you analyze situations and choose to react is essential. When trying to assess the lay of the land, few tools are more useful than the SWOT analysis.

# data[].attributes.body
Managers make decision everyday just like the rest of us however, their decisions affect a whole company. They must take into account all available information to make the best decision possible.

# data[].attributes.attachment_link.title
Decision making (Principles of Management)

# data[].attributes.attachment_link.description
Making Decision Group 2 MM 105 Source: SAMUEL CERTO

# data[].attributes.body
Managers who consider organizational objectives as significant and a primary part of the management process.

# data[].attributes.body
Planning precedes organizing, influencing, and controlling. It is the foundation and first step to be preformed. The purpose of planning is to one: protect - to minimize risk and clarify the uncertain that come with management actions. Two: affirm - to increase organizational success.

# data[].attributes.body
Success of an organization depends upon the research and implementation of the management plans. A well-known fact is that it is impossible for organizations to operate without outlining appropriate management strategies.

# data[].attributes.attachment_link.title
Types of Management Plans | Tutorvista.com

# data[].attributes.attachment_link.description
The prosperity of an organization depends upon the preparation and execution of the management plans. It is a well known fact that it is impossible for an organization to operate without outlining proper management plans. Over the years through extensive study and management research, many scholars have divided management plans in two types, namely, Strategic Management Plans and Operational Management Plans.

# data[].attributes.body
Each process is suited for the organizations needs at different times. The process is best executed when everyone in the company understands the strategy.

# data[].attributes.attachment_link.readable_text
The strategic management process can help grow your business.

BananaStock/BananaStock/Getty Images

The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business. Upper management must think strategically first, then apply that thought to a process. The strategic management process is best implemented when everyone within the business understands the strategy. The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.

Clarify Your Vision

The purpose of goal-setting is to clarify the vision for your business. This stage consists of identifying three key facets: First, define both short- and long-term objectives. Second, identify the process of how to accomplish your objective. Finally, customize the process for your staff, give each person a task with which he can succeed. Keep in mind during this process your goals to be detailed, realistic and match the values of your vision. Typically, the final step in this stage is to write a mission statement that succinctly communicates your goals to both your shareholders and your staff.

Gather and Analyze Information

Analysis is a key stage because the information gained in this stage will shape the next two stages. In this stage, gather as much information and data relevant to accomplishing your vision. The focus of the analysis should be on understanding the needs of the business as a sustainable entity, its strategic direction and identifying initiatives that will help your business grow. Examine any external or internal issues that can affect your goals and objectives. Make sure to identify both the strengths and weaknesses of your organization as well as any threats and opportunities that may arise along the path.

Formulate a Strategy

The first step in forming a strategy is to review the information gleaned from completing the analysis. Determine what resources the business currently has that can help reach the defined goals and objectives. Identify any areas of which the business must seek external resources. The issues facing the company should be prioritized by their importance to your success. Once prioritized, begin formulating the strategy. Because business and economic situations are fluid, it is critical in this stage to develop alternative approaches that target each step of the plan.

Implement Your Strategy

Successful strategy implementation is critical to the success of the business venture. This is the action stage of the strategic management process. If the overall strategy does not work with the business' current structure, a new structure should be installed at the beginning of this stage. Everyone within the organization must be made clear of their responsibilities and duties, and how that fits in with the overall goal. Additionally, any resources or funding for the venture must be secured at this point. Once the funding is in place and the employees are ready, execute the plan.

Evaluate and Control

Strategy evaluation and control actions include performance measurements, consistent review of internal and external issues and making corrective actions when necessary. Any successful evaluation of the strategy begins with defining the parameters to be measured. These parameters should mirror the goals set in Stage 1. Determine your progress by measuring the actual results versus the plan. Monitoring internal and external issues will also enable you to react to any substantial change in your business environment. If you determine that the strategy is not moving the company toward its goal, take corrective actions. If those actions are not successful, then repeat the strategic management process. Because internal and external issues are constantly evolving, any data gained in this stage should be retained to help with any future strategies.

# data[].attributes.attachment_link.title
The Five Stages of the Strategic Management Process

# data[].attributes.attachment_link.description
The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business. Upper management must think strategically first, then apply that thought to a process. The strategic management process is best implemented when everyone within the business understands the strategy.

# data[].attributes.body
The mission statement is usually written so that all organizational members have access to the company's objectives.

# data[].attributes.attachment_link.title
Page not found - Top Nonprofits by Nexus Marketing

# data[].attributes.attachment_link.description
Learning From the Best Nonprofit Orgs and Leaders