The Strategy Pyramid

Chapter 18: Strategy is Focus - Page 18.2

The Strategy Pyramid

Imagine a pyramid made of three levels. The top of the pyramid is a single box, which contains a strategy. Strategy is an area of resource focus. In the middle level, you have three or so boxes which contain tactics. In the third level, you have four to six boxes that stand for programs. It would look something like this next illustration.

The Strategy Pyramid

Don't get lost in defining strategy and tactics. Make the strategic view work logically.

Strategy is a main focus, which might be on a specific target market, product opportunity, positioning statement, or some other important or fundamental element.

Tactics are there to implement a strategy. For example, if a computer store's strategy is to build long-term relationships with business customers, its tactics might include increasing networking offerings, training, and support.

Programs are specific business activities which support the tactics. Each program has concrete dates and responsibilities, and probably a budget. In the computer store example, programs for the strategy might include upgrade mailings, seminars, installation services and network training.

You don't necessarily do a complete business strategy in a single pyramid. Each fundamental business strategy might be a different pyramid.

One important benefit of the pyramid method is integration and alignment. If your strategy is to focus on one thing, you should be able to trace that strategy into its tactics and, most important, into your actual spending and activity priorities. Flip back and forth between your strategy pyramid and your specific programs, and ask yourself: do your programs match the emphasis you put on strategy?

The discussion on Value-based Marketing on page 18.4 shows a completed strategy pyramid.

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