Why is it important to distinguish between strategic and tactical decisions in a company?

Distinguishing between strategic and tactical decisions is crucial for ensuring that long-term objectives are met. Strategic decisions typically involve overarching goals and the direction of the company, focusing on the big picture and long-term success. These decisions shape the mission, vision, and values of the organization, guiding how resources should be allocated and prioritized over time.

Tactical decisions, on the other hand, are concerned with the implementation of the strategies. They involve day-to-day operations and short-term actions needed to achieve the goals set out by strategic decisions. By clearly separating the two, organizations can maintain focus on what is essential for success in the long run, while also ensuring that the tactical actions align with strategic objectives. This alignment is key to preventing drift away from the company's long-term goals and ensures resources are effectively utilized to build towards those objectives.