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For me SEO means making the client money.
This entails, but is not limited to, getting the target site as high on page one of SERPs for relevant keywords as possible.
That typically involves (in no particular order):
1. Keyword/search phrase analysis
2. Competitor analysis
3. Search phrase optimization
4. Link building
5. Anchor text building
6. On page optimization
7. Directory listings
8. Outgoing link analysis
9. Purchasing PR when necessary
10. Doorway page requirement analysis/implementation
11. ALT text analysis
12. Image usage analysis
13. Brower compatibility analysis
But to be successful a good SEO won't stop there:
14. Navigation analysis
15. Load speed analysis
16. Conversion rate analysis
17. Optimization of all of the above
18. Log file analysis each week (very important)
19. Market share analysis
20. Determination of sponsorship requirements (can't win 'em all)
21. Back to #1 and do it all again.
Plus 20 other things I forgot as I don't have my files handy right now.
Bottom line, most people expect the SEO to be their online advertising agency, not someone who performs magic tricks with meta tags. The client wants to see real returns, a good long-term relationship is a win-win based upon both delivering :)