Strategy or Operations?

How to decide the difference?

Extracted from Strategize! Experiential Exercises in Strategic Management, 3rd ed, by Gopinath and Silciliano

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Strategy or Operations

Strategy

Involves development of strategies for the total organization.

Includes defining the mission, overall corporate goals; determining what businesses to be in and how to compete in those businesses.

Operations

Helps to make strategic-level decisions work.

Activities that keep the business running efficiently in areas of HR, finance, marketing, accounting, engineering, manufacturing, etc.

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To clarify what is strategic versus operational, ask these questions:

Is the decision about changing the firm’s position within the industry?

Will the decision involve a new business area?

Does the decision have a significant financial impact on the firm?

Would it evoke a significant response in the environment—that is from competitors or other stakeholders?

An answer of YES to any or all of these would indicate a strategic decision.

Strategy

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Benefit of distinguishing is that you begin to develop a type of strategic thought process.

Effectiveness at both strategic and operational decisions essential to competitiveness, but operations easier for competitors to imitate.

Your projects require Strategic Recommendations, not operational.

Why distinguish?

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