Strategy vs Planning: Realizing the Difference for Business Success
Strategy vs Planning: Realizing the Difference for Business Success
In business, achieving success requires more than a great idea—it demands pairing a clear strategy with a complementary plan. Strategy and Plan are often used interchangeably; however, understanding their separate but interconnected roles can significantly enhance an organization’s ability to achieve its goals.
Strategy is a series of choices that will shape how an organization achieves its long-term goals. There are typically a variety of ways for a company to go from its current state to its desired future state. It’s important to apply creativity in considering all strategic possibilities and analyzing them to choose the one that has the best likelihood of success.
Conversely, a plan is a detailed map that outlines the specific actions that support the strategy. Plans are more fluid and adaptable, designed to respond to immediate challenges and opportunities.
Below are some differences between corporate strategy and planning:
To achieve lasting success, organizations should align their strategy and planning efforts. The strategy sets the broad goals and vision, while the plan breaks down these goals into actionable steps.
An example that highlights the difference between a strategy and a plan can be seen through the example of a company looking to enter a new market. Let’s say ABC Company currently operates and is profitable in one province, and its goal is to gain market share in a neighbouring province.
After clearly identifying the problem the company faces in entering the new market, they can conduct a deep analysis of the new market, their current business practices and resources, and then map out a series of ways that they could “win” that new market share. These new market entry strategies could include:
- partnering with another firm
- setting up a local office
- acquiring an existing business
- direct sales through marketing and e-commerce
After extensive research and testing of these strategic possibilities, a choice is made. ABC company can then develop a plan that aligns with the chosen approach. The plan can include key messages, tactics, timing and budgets to support the success of the strategy.
At the end of developing a strategy, everyone in the organization should be able to articulate their strategy so that the plans they develop, and implement are aligned and support the strategy's execution.
Revisiting your strategy often should be an important corporate priority, as it will allow you to be nimble and adjust to changes in the market or environment. Keeping strategy and planning intertwined yet distinct allows for dynamic growth and the continuous achievement of goals, ensuring your organization remains focused and effective on its path to success.
Reach out to a member of our team to discuss how we can help your organization develop an effective strategy and plan.