Business Strategy 1: Thinking Strategy Versus Operations

This begins our series on establishing a business strategy that leads to success

My experiences with many businesses and organizations demonstrates that very few people recognize the difference between strategic and operational planning or implementation. Leaders waste millions of dollars each year implementing operational initiatives with no strategic framework to support it. They thought they were implementing a strategy, but did not. This series will explain the difference, and share proven steps to a strategic cycle.

Definitions

Business Dictionary.com offers the following definitions:

Strategy

1. A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem.
2. The art and science of planning and marshaling resources for their most efficient and effective use. The term is derived from the Greek word for generalship or leading an army.
3. Read more: http://www.businessdictionary.com/definition/strategy.html#ixzz20EX3rXFB

Operations

1. Activities involved in the day to day functions of the business conducted for the purpose of generating profits.
2. Read more: http://www.businessdictionary.com/definition/business-operation.html#ixzz20EXq1zkJ

Differences

Management Study Guides provides an excellent graph to show the differences between strategy, administration, and operations. “The differences between Strategic, Administrative and Operational decisions can be summarized as follows-

Strategic Decisions	Administrative Decisions	Operational Decisions
Strategic decisions are long-term decisions.	Administrative decisions are taken daily.	Operational decisions are not frequently taken.
These are considered where The future planning is concerned.	These are short-term based Decisions.	These are medium-period based decisions.
Strategic decisions are taken in Accordance with organizational mission and vision.	These are taken according to strategic and operational Decisions.	These are taken in accordance with strategic and administrative decision.
These are related to overall Counter planning of all Organization.	These are related to working of employees in an Organization.	These are related to production.
These deal with organizational Growth.	These are in welfare of employees working in an organization.	These are related to production and factory growth.

Thursday we review hierarchical levels of strategy: corporate, business unit, departmental