Strategic Decisions

What constitutes a 'strategic' decision? 

A decision is likely to be strategic rather than tactical or operational if:

• The decision has major financial or other resource implications – for example, on staffing or equipment.

• The decision will involve a significant amount of change in the organisation.

• The decision will affect the whole organisation or a large part of it.

• The decision constrains or commits the organisation in significant respects for a long period of time.

• The decision will have a major impact outside the organisation – for example, on customers or other bodies.

• The decision entails significant risks to the business.

• The decision will involve major changes in the business of the organisation, such as the products or services it offers.

• The decision is related to other important decision areas, and raises issues of complexity and 'cross-cutting' interactions.

• It will be difficult or impossible to reverse the consequences of the decision.

If the organisation has to take a strategic decision unexpectedly, the decision will be taken and the strategy updated in parallel. A strategy is a guide to action, not a straitjacket; you should remain open to the need for changes in strategy when the business requires them.