What Does 'Strategic' Mean In Business?
“Be more Strategic!”
It’s a phrase you may have heard often in business. But what does it actually mean in practice – and how do you know when you’re being strategic (or not)?
I remember when I didn’t have a clue what the word strategy or being strategic meant.
But, now, after 40+ years in business and over two decades coaching other business owners, I’ve come to the conclusion ‘strategy’ is one of the most misunderstood concepts in business. It’s also one of the biggest contributors to business success and unlocking potential. That makes it important to understand.
So, what does it really mean to be strategic?
It’s about thinking at the right level, for the right reasons, at the right time.
Levels of Thinking
There are three main types (and levels) of thinking that are important to understand and master in business:
Strategic Thinking
This is about direction, design, and positioning. It requires you to step back, take a longer view, and make the high-level decisions that will shape your future. Strategic decisions are not made fast – they’re well-considered, they need to be – because the impact lasts. These are high level decisions.
Operational Thinking
The most common mistake?
Treating every decision like it’s tactical – being quick, reactive, and needing to “get it done.”
When the goal, issue, opportunity or decision is truly strategic, ‘fast action’ often leads to wasted effort, lost opportunities, and lack lustre results. That means lost potential.
Strategic decisions aren’t made fast.
The Pace of Decision-Making Matters
- Strategic decisions should be made slowly – not out of indecision, but because they deserve deeper thought, research, and consideration. The stakes are higher, and the impact lasts longer. Good, bad or otherwise.
- Operational decisions take some time to plan and implement. They are about development and making things work better and achieve more for the short to medium term.
- Tactical decisions should be made quickly. They are useful when the situation requires a response. They carry less risk and can often be corrected on the fly. This is where the real action happens and results are seen.
When you mix these up – making fast decisions about big issues, or slow decisions about small ones – businesses, and the people leading them, lose their way and often stall or get stuck.
Clarity about the right thinking, at the right time, and the right pace, makes all the difference.
A Final Thought…
Strategic thinking isn’t something you just do once a year in a planning session. It’s a way of looking at your market, thinking about your business and team. It’s about identifying key issues and market opportunities. The better you get at thinking strategically, the more potential you will have, and progress you will make.
Curious if you’re truly thinking at the right level?
Over the next few weeks, I’ll be sharing practical ways to recognise, improve, and apply strategic thinking – so you can build a better business and enjoy a better life.
Keep an eye out for my next article, this time next week.
Cheers,
Geoff
