Businesses often operate in one of two different ways: strategically or tactically.

A tactical company merely does what it takes to continue operating, without much thought as to why. It maintains production systems, markets, sells and delivers its product or service and considers the job over. It is focused on tactics or tasks. Essentially, it is so busy putting out fires it rarely thinks about problems ahead.

A strategic business operates differently, however. It does everything with a larger purpose or objective. A strategy is more than tasks and accomplishments. It contains a vision of what and where the company will be sometime in the future. Once this vision is in place, then all tasks and decisions are put into a framework aimed at achieving the vision.

In a sense, a strategy is the engine that drives a business. Tactics are the various parts that make up that engine. A cursory business plan is not strategic planning. Strategic planning involves an intense and deep look at how a business operates. More importantly, it involves the question of why the business operates the way it does. It creates a purpose, a plan to achieve that purpose, and communicates that purpose and plan to everyone involved in the business operation.

In the modern business landscape, with its intense competition, constant changes and challenges, and fluctuating conditions, this becomes very important. A business that is operated only tactically cannot react to outside factors. A business that is operated strategically can change quickly to deal with short-term problems.