Strategy vs. Tactics (Operations): Disruptive Leadership Dilemna
Recently, I had a fascinating time with one of the Boards I am honored to serve on. As the chair of the planning committee, I led a discussion focused on “operations versus strategy.” It’s an issue many nonprofit and corporations struggle with, and I hope this helps you in your journey through the independent sector in resolving this dilemma within companies.
It’s always a thin line between strategy and operations. As the sector creates more and more of a competitive edge, it’s apparent that both board members and executives understand the difference between the business strategy equation and the operational equation, and how they work together.
There are two engines; the strategy engine and the operational engine. Strategy asks questions concerning vision, new solutions, services, and concepts the business may want to offer, as well as new markets and clients you may want to serve to fulfill your mission. The operational engine is focused with executing everyday activities and commitments, such as strategic decisions around management, staffing, IT, HR, compliance, contract management, logistics, marketing, fundraising, budgeting and financial management, capital improvements, safety, team building, and the list goes on. Operations are the HOW of business strategy.
The Board of Director’s role is to focus on the strategy engine with the CEO, which then needs to work in tandem with the operational engine which is led by the CEO and their team of executives. This relationship of duties requires an understanding of the strengths, weaknesses, opportunities, and threats (SWOT), experimenting with new processes and solutions and shaping the future, so the organization positions itself to win in both the short and long-term. Ultimately, the operations engine supports the strategy engine, but the operations engine has to be led by the leader of the organization to keep the separation of duties intact, but also to create synergy throughout the agency.
The lines between the operational and strategic engines of the business often get confusing and blurred as I’ve observed in many situations. Understanding the tension that does exist between these two functions will help all leaders recognize ways to resolve those differences. When that happens with authenticity and transparency, leaders will see ways they can play a role in supporting each of these critical aspects of the business.
Both business functions are two separate, but related, activities to make an organization thrive. Both propel the organization forward. Advanced movement into the future can occur with just one operating, although barely, but will not be useful, therefore, the engines run at its maximum purpose when both are co-existing.
Each engine is essential, and each engine requires strategic attention to deliver results in an impactful manner. Again, often, the lines get blurred, but it’s crucial for organizations to remind themselves of their perspective roles on a constant basis. It’s the art of science of mission-based organizations, and what makes our industry so powerful. Whenever you have caring people working together on a mission, it’s incredible to watch but requires leaders who are disciplined and willing to change the status quo.
IF you carefully lead and effectively maintain both your operational and your strategic engines, you’ll find yourself fulfilling your dream and achieving your goal of impacting lives. Executives don’t like when board members drift too far into operations, and board members don’t like when executives stray too far into keeping them away. What makes the relationship balanced and healthy is when both sides understand their roles and stay focused on the mission.
