Rethinking Planning and Strategy: The Difference You Need to Know

🧩Strategy is an integrative set of choices that positions a company for success on a chosen playing field.

💡Planning is a set of activities that a company intends to do, but it doesn't necessarily contribute to a winning strategy.

📊A great strategy requires coherence, doability, and a clear translation into action.

💼Planning focuses on spending resources, while strategy focuses on achieving a competitive advantage.

🚀Strategy involves taking risks and making choices based on a desired outcome, even when it can't be guaranteed.

What is the difference between planning and strategy?

—Planning focuses on the activities a company intends to do, while strategy involves making choices that position the company for success in a competitive market.

What makes a great strategy?

—A great strategy requires coherence, doability, and a clear translation into action.

Why is planning comforting but not necessarily good for the company?

—Planning focuses on spending resources controlled by the company, while strategy involves creating an outcome that depends on customers' choices.

How can a company escape the planning trap?

—By recognizing that strategy involves taking risks, by laying out the logic of the strategy clearly, and by not overcomplicating the strategy.

Can strategy guarantee success?

—No, strategy cannot guarantee success, but it gives the company the best possible chance of winning in a competitive market.

00:00Planning and strategy have been around for a long time, but they are not the same.

01:02Strategy is an integrative set of choices that positions a company for success on a chosen playing field.

03:14Strategy involves making choices that depend on customers' choices, which makes it riskier than planning.

06:35Strategy requires taking risks and accepting the uncertainty of outcomes.

07:46To escape the planning trap, recognize the angst associated with strategy, lay out the logic of the strategy clearly, and avoid overcomplicating the strategy.