Levels of Business Management – Strategic, Tactical and Operational
Business management levels are a guarantee of the success and effectiveness of these organizations. In total, three levels help plan the guidelines that will move the business management and what will be done to stay on course.
The 3 levels of business management
Each level fulfils a series of tasks that complement each other to guarantee the entire organization’s success. If one of them disappeared, the whole structure of business management systems would suffer since there would be no plan or objectives to follow.
1. Strategic level:
It is the vision that drives the company’s actions. Establishes the objectives to be met and the guidelines to achieve them. Management plays a significant role in decision-making when defining the strategy, so it must act with great precision so that the entire organization understands its vision.
2. Tactical level:
Only the departments are in charge of developing this level. The objectives are defined, and the actions to be carried out are created to make the company’s strategy a reality. It is a type of specific planning that attends in depth to details.
3. Operational level:
In this last level appear the agents in charge of executing the actions developed at the tactical level. They perform short-lived actions, and everyone in the company has a role to play at this level.
Once you have seen the fundamental characteristics of each level, it is convenient to see in greater detail what each consists of. This way, you will get a more precise idea of how each level works, who participates in each one and how they interact.
Strategic business management level
This level corresponds to the general vision of the state of the market and the generation of strategies that allow the company to adapt to its changes. The company’s director general is in charge of developing the guidelines that the entire organization will follow, which he devises from the detailed observation of the state of the sector in which the company operates, of the competition and of the characteristics themselves. Of the company
The strategic one is the upper level of the organizational pyramid of the company and is the one that has the most weight in economic decisions. A wrong decision or change management at this level will cascade to all the others. Likewise, planning at this level is long-term.
Tactical or technical business management level
Participation, as already mentioned, is much more limited in this case. The departments are in charge of developing the first-level strategy, which they achieve by developing tactics. These are specific activities that affect one part of the overall strategy. Particular goals and actions are created to reach the final objectives.
The tactics are developed over one to three years, and measurement criteria are established to evaluate the results. In short, this level allows the implementation of the strategy, which is more general, based on specific plans.
Operational business management level
The last level executes plans; that is, it is the implementation by the personnel of the tactics of the previous story. The projects they devise are short-term, lasting a few months, and focus on specific actions. In addition, all tasks and operations are guaranteed to be executed following the general strategy and applied tactics.
In short, these three levels of business management maintain a relationship of interdependence, although they can act autonomously as long as they row in the same direction. Thanks to coordination, the plans developed at each level guarantee the entire company’s success.