Strategy vs Strategic Planning: The Intentional Choices

“Another strategic planning session,” I once heard a colleague sigh, “but how is this any different from last year?” Too often, we conflate planning with strategy, turning what should be a roadmap for how to grow into a collection of activities. As many businesses have shown – strategy and planning are not the same, and treating them as substitutes can lead to missed opportunities and wasted effort.

Having gone through several planning cycles as a core member, I've witnessed firsthand some of the challenges of balancing these elements effectively. Here’s a breakdown of how they differ and how we can leverage both to drive success.

?? 1. The Key Distinction Between Strategy and Planning

Think back to the most recent “strategic plan” you’ve seen. Did it feel more like a checklist of projects with timelines and budgets rather than a roadmap for how to grow? That’s because strategy is about making integrated choices, while planning is about executing those choices.

Consider the classic case study of Southwest Airlines. Many of us have encountered this example in management classes. Picture the airline industry back then – competitive, crowded, and full of giants. Instead of trying to beat them at their own game, Southwest made a series of strategic choices with their limited resources, like focusing on point-to-point flights and using a single aircraft model. This positioned them as a convenient alternative to long bus rides. They didn't attempt to be everything to everyone; they concentrated on where they had the strength to win. It was never about doing more – it was about doing what mattered most to achieve their vision.

Strategy defines what you’ll do to win and where you’ll compete; planning maps out how you’ll execute those choices.

?? 2. Why Planning Is Often Mistaken for Strategy – And How to Avoid the Trap

It's easy to fall into the trap of mistaking planning for strategy. Why? Because planning feels familiar – it's about what we can control, like resources, timelines, and budgets. Strategy, on the other hand, is about embracing uncertainty, risk, and making deliberate choices on where to allocate resources to grow and win.

HubSpot's early growth journey in the mid-2000s is a great example. Rather than jumping into outbound marketing like many SaaS companies, HubSpot identified a strategic opportunity in inbound marketing, a relatively new concept. They focused on attracting customers by providing valuable, educational content instead of pushing sales messages. This wasn’t just a series of content marketing tasks – it was a deliberate, strategic choice to build an ecosystem that would position HubSpot as the go-to authority on inbound marketing.

Their planning didn’t just involve launching blogs or social media posts; it was about building tools and resources that aligned with their strategic goal, like developing a suite of inbound marketing tools that helped businesses implement the same methods HubSpot championed. This approach created a journey for their audience, leading them from awareness to adoption of HubSpot’s platform.

Planning is often mistaken for strategy because it feels productive, but real progress comes from integrating deliberate strategic choices that guide every action, just as HubSpot did in its early years.

Reflecting on my own experience in consulting, I’ve frequently faced the challenge of delivering impactful yet actionable strategy recommendations. The goal was to avoid offering advice that was too abstract, which might lead clients to agree but feel lost in execution, or too detailed, which might be actionable but miss the bigger picture. Finding that balance between guiding clients with strategic planning advice while maintaining the larger vision is what makes the difference – ensuring they know how each action contributes to their broader goals.

Instead of jumping into initiatives, providing outside perspectives, like a competitive benchmarking analysis or a long-term vision, helps teams think beyond the tactical moves for the next year. OKRs and KPIs can play a crucial role in bridging the gap between strategy and planning, offering measurable goals that keep teams aligned with the bigger picture. They help ensure that every action contributes to the overarching strategic objectives, making it clear how each step fits into the larger narrative. (In future articles, I'll dive deeper into how to effectively use KPIs to maintain strategic alignment. Feel free to drop a comment if this is a topic you'd like me to explore further!)

?? 3. Balancing Autonomy with Alignment: How LoBs Should Approach Strategy and Planning

When corporate strategy is set at the highest level, should each Line of Business (LoB) develop its own strategy? Yes – but it must connect to the corporate vision.

Imagine a company as a tree. The corporate vision forms the sturdy trunk, while each LoB is a branch that needs to grow in its own direction but still draws strength from the same roots. LoBs operate in unique environments, facing different challenges and opportunities, so they need their own strategies that align with but add depth to the overall corporate vision.

Take a technology company with a corporate vision to be the most customer-centric provider in the market. One LoB might execute this vision by developing intuitive, user-friendly software interfaces that prioritize user experience, ensuring that their products are easy to navigate and accessible to all customers. Meanwhile, another LoB might focus on building an exceptional customer service infrastructure, implementing live chat support, personalized onboarding, and proactive outreach to enhance customer relationships.

Although each LoB pursues different initiatives, they’re both fulfilling the overarching goal of being customer-centric. Their strategies are tailored to their specific contexts yet contribute to the broader vision. This alignment ensures that while each branch grows in its own way, it ultimately supports the company’s mission.

Throughout the past few years, I’ve seen that when different teams work independently without alignment, plans often emerge without fully integrating with one another. This lack of cohesion can lead to inefficiencies and missed opportunities. Setting a clear process from the beginning, encouraging dialogue, and iterating based on feedback helps maintain alignment across teams, ensuring everyone is working toward the same strategic goal.

LoBs should develop their own strategies that reflect their unique challenges and opportunities while ensuring they stay rooted in the company’s bigger picture.

Reflection

As you navigate your own strategic planning cycles, remember that strategy is about making choices that matter – choices that define where you’ll grow and how you’ll make an impact. Planning then brings those choices to life, turning vision into reality.

I've learned that it's not always easy, but the process becomes more rewarding when you’re clear on your direction. Have those conversations, involve others early on, and embrace the journey, even when it feels uncertain. So, as we step into our next planning cycle: Are your actions truly aligned with your strategic goals, or are they just tasks on a checklist? Let’s challenge ourselves to not just play the game but to grow together.

What strategic choices will you make today to ensure you're not just planning, but planning to grow? I’d love to hear your thoughts – let’s learn and inspire one another.

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Reference:

• Strategy vs. Planning: Complements not Substitutes by Roger Martin
• The Difference Between a Plan and A Strategy, HBR on Strategy