A Plan Is Not a Strategy: Why Vision Trumps Comfort in Business
Ever feel like your carefully crafted plans just aren't leading to the success you envisioned? You're not alone. Many businesses fall into the trap of mistaking activity for progress, confusing plans with strategies. But according to Roger Martin, former dean of the Rotman School of Management, a plan and a strategy are worlds apart.
What's the difference between Plan and Strategy
Plans are essentially lists of activities and resources you intend to allocate. They offer comfort and control, focusing on what you can directly influence. But they often lack coherence, theory, or a clear goal beyond resource utilization.
Strategies, on the other hand, are about winning. They involve making integrated choices about where you'll compete, how you'll differentiate yourself, and how you'll achieve your desired outcome. They force you to consider factors beyond your control, like customer preference and competitor actions.
Think of it like this: A plan is like deciding to build a factory, while a strategy is like deciding to become the most efficient manufacturer of a specific product. The first focuses on action, the second on winning in a specific way.
Why is this distinction so Important
Planning without strategy sets you up for a fall. You might end up with impressive-looking lists and efficient operations, but without a clear path to victory, you're ultimately playing not to lose instead of to win.
Let's take Southwest Airlines as an example. While major carriers focused on expanding routes and fleets (planning), Southwest had a clear strategy: be the most convenient and affordable alternative to Greyhound buses. This strategy guided their entire operation, from point-to-point flights to single aircraft type, leading them to become the largest passenger carrier in the US.
How can you escape the Planning trap and embrace Strategy
- Embrace the Angst: Accept that strategy involves uncertainty and discomfort. You can't guarantee success, but you can give your organization a chance to excel.
- Articulate Your Logic: Clearly lay out what needs to be true for your strategy to work. This allows you to monitor the market and adapt as needed.
- Keep it Simple: Aim to summarize your strategy on a single page. Focus on where you'll play, how you'll win, and the key capabilities you need.
Remember, strategy is a journey, not a destination. Be prepared to refine and adapt as you go, but always keep your winning vision in sight. By ditching the comfort of plans and embracing the power of strategy, you'll give your business the best chance to truly thrive.
Ready to turn your plans into a Winning Strategy? Start by asking yourself these questions:
- What is our desired outcome?
- Who are our key competitors?
- What unique value proposition can we offer?
- What capabilities do we need to develop?
- How will we measure our progress?
By answering these questions and embracing the principles outlined above, you can transform your business from a plan-maker to a strategy-driven winner.
Want to learn more?
- Check out Roger Martin's full talk on "A Plan Is Not a Strategy": https://youtu.be/iuYlGRnC7J8
- Read his book "Playing to Win": https://rogerlmartin.com/lets-read/playing-to-win
Remember, the path to success lies not in comfort, but in vision and strategic action. Take the first step today!
P.S. Share this article with your colleagues and network to help them escape the planning trap and embrace the power of strategy!
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