Strategy is a sexy word, but do you really know what it means?

“If a man knows not to which port he sails, no wind is favorable.” – Seneca

One of my clients recently told me, ?“I feel like my plan isn’t strategic enough,” as we walked out of a session. My response was simple: “How do you know?” Silence. You see, most people get stuck trying to articulate why something feels off and don’t know how to differentiate strategy from execution.

This wasn’t the first time I’d heard something similar—whether in a session, over coffee, or while traveling. The word “strategy” seems to pop up everywhere, yet few people can define it clearly. Everyone says, “strategy, strategy, strategy,” but very few people truly understand what it means. Worse, they confuse it with tactics, plans, or even goals.

So, what does strategy actually mean? And how can you craft one that truly works?

The Real Meaning of Strategy

Let’s start with a definition. Strategy is long-term. It’s about having a big-picture goal—a compass guiding you toward a destination. According to the dictionary, it’s “a general plan or set of plans intended to achieve something, especially over a long period.”

It’s not a quick fix or a reactive response. True strategy connects deeply to your company’s purpose and lays out actionable steps toward a long-term vision. Without this clarity, even the best execution won’t take you where you want to go.

Strategy needs a compass

Every great strategy begins with a bold, ambitious vision for the future. In planning sessions, I often ask clients to define their Big Hairy Audacious Goal (BHAG)—a clear and inspiring destination 5-10 years away.

From there, we break it down into manageable steps:

• The BHAG: Your ambitious, long-term goal.
• 3-Year Numbers: Milestones that bring the BHAG closer to reality.
• Annual Plan: SMART goals (specific, measurable, achievable, relevant, and time-bound).
• Quarterly Plan: Breaking the annual plan into 90-day priorities to track progress.

A BHAG gives your team a mountain to climb. It’s ambitious enough to inspire but specific enough to focus their efforts. Once you’ve defined the overarching goal, the next step is to root it in purpose and values—the elements that give your strategy meaning and sustainability.

Purpose: The Heart of Every Strategy

Purpose is the “why” behind the work. It’s what keeps you moving forward when the daily grind becomes overwhelming. When your team understands and believes in this purpose, they’re more committed to executing the strategy—even during tough times.

Think of Nelson Mandela. How did he endure 35 years in prison, day after day, night after night, holding on to what he believed he’d do once he was free? Mandela’s unwavering sense of purpose didn’t just help him survive—it guided his decisions, kept him focused on his vision, and fueled his resilience. Similarly, companies can leverage their purpose to navigate challenges by using it as a compass. When times get tough, purpose reminds everyone why the work matters and unites the team around a common goal, ensuring that strategy stays on course.

A strong purpose acts like your North Star—it’s the constant guide that keeps you focused, no matter how rough the journey becomes. Think of your BHAG as the mountain you’re climbing. The climb is challenging and requires careful planning, but the North Star ensures you never lose sight of why you’re climbing in the first place. Together, your purpose and BHAG provide the direction and drive needed to keep your team moving toward your ultimate vision.

The Difference Between Strategy and Execution

Even with a clear purpose and plan, many businesses stumble because they confuse strategy with execution. Here’s the distinction:

• Strategy: The big-picture plan that outlines what you aim to achieve.
• Execution: The day-to-day work required to make that plan happen.

Your purpose stays steady, but your strategy? That’s something you adjust when it’s not getting results. This isn’t failure—it’s adaptation. For example, at DeLaIsla, we had a goal of sourcing raw materials from another country, processing them locally, and selling the products in the United States. Despite our hard work, the strategy didn’t deliver the results we hoped for. So, we pivoted. This year, we focused on boosting local sales while still importing products. Our goal—growth—remained the same, but our strategy evolved to fit market realities.

That’s the thing about strategy: it’s not about blindly sticking to a plan. It’s about knowing when to adjust and still aiming for your long-term goals. Execution is the bridge between your strategy and reality—it’s how you bring that adaptive plan to life.

Prioritization: Where Strategy Comes to Life

The essence of strategy lies in what you choose to prioritize—and what you intentionally leave out.?

When facilitating planning sessions, there are countless possibilities that can go into the plan. But what you choose to prioritize—and what you choose to leave out—is the essence of strategy.

When a leader, in collaboration with their team, makes these prioritization decisions, that is the true strategic moment. It's not just about creating a list of tasks; it’s about having the courage and clarity to focus on what will drive the biggest impact over time.

To figure out what to focus on, I like to ask questions inspired by Jim Collins’ work. These questions help bring clarity to what really matters.?

Where to place big bets: What does your company excel at? What aligns with your purpose and makes money? Focus your resources there. Ask yourself: What am I already great at? What aligns with my goals and generates real results? This helps you decide where to double down for maximum impact.

If your company has a product or service that’s proven to work, makes money, and aligns with your purpose, this is where you double down. For example, at DeLaIsla, we considered expanding into Central America. But after reflecting, I realized we weren’t ready. We weren’t dominating the market there. Instead, we focused on becoming the leader in Nicaragua, a market we know well. This decision carried the same potential upside but far less risk. This taught us a critical lesson: doubling down on what you know works is often the fastest way to grow, without overextending yourself.

How to protect your flanks: What changes—inside or outside your company—could disrupt your business tomorrow? Think about these risks and take small steps today to prepare. Ask: What’s happening in my industry or business that could become a threat? How can I prepare now to stay ahead?

It means staying ahead of challenges. In my industry, I’m certain that repetitive tasks will be automated in the next 10-15 years, especially in countries like Mexico, Panama, and Brazil. If we’re not prepared, this could put us out of business. That’s why we’re investing in artificial intelligence and training our team today. For example, we’ve launched programs to teach employees how to use AI tools effectively. These steps ensure we stay ahead instead of falling behind.

How to extend victories: What’s already working? How can you make it bigger, better, or bring it to new markets? Instead of chasing shiny new opportunities, ask: What’s proven to work, and how can I grow it further? Success builds momentum, and doubling down on what works ensures steady, reliable growth.

Sometimes, businesses get distracted by “the next big thing.” But often, your best opportunities are in what you’re already doing well. If you’ve built a product or service that’s consistently successful, focus on growing it. How can you make it better, reach new customers, or scale it to new markets?

Wrapping It Up

In the end, strategy is as much about clarity as it is about adaptability. The process evolves, but the foundation—purpose, priorities, and execution—remains the same.

Here are the key takeaways:

• Define your BHAG and purpose: Start with a bold vision and a compelling reason why.
• Prioritize wisely: Focus on the actions that will create the biggest long-term impact.
• Adapt when needed: Strategy evolves, but the destination remains constant.
• Balance strategy and execution: Execution bridges the gap between planning and results.

Remember, strategy isn’t a one-and-done thing. It’s a dynamic process that requires focus, adaptability, and commitment to purpose. With these elements in place, your strategy becomes the map that guides you through challenges, keeps your team inspired, and turns your boldest goals into reality.