Strategy vs. Planning: Why Most Organizations Confuse the Two

I would estimate that millions of words have been uttered to explain what strategy is (or isn’t). But crafting a strategy is a bit like trying to define ‘love’ – at times it’s ephemeral, it’s a feeling, a hunch, a gut instinct about where to go & why.

What this post won’t be is me trying to explain strategy. I have nothing new, unique, or better to say about the topic than other more studied and brilliant practitioners. But what I did want to do was round up some of my favorite resources as a place to refer back to when I’m having to craft or build a strategy or when I see someone else struggling.

Why Most Organizations Are Planning, Not Strategizing

Let’s first start with a video from HBR that features former dean of the Rotman School of Management at the University of Toronto, Roger Martin.

What I love about this video is that it calls out what is common practice in lieu of actual strategy: planning.

“A strategy is an integrative set of choices that positions you on a playing field of your choice in a way that you win. So there’s a theory. Strategy has a theory. Here’s why we should be on this playing field, not this other one, and here’s how, on that playing field, we’re going to be better than anybody else at serving the customers on that playing field. That theory has to be coherent. It has to be doable. You have to be able to translate that into actions for it to be a great strategy. Planning does not have to have any such coherence.”

Roger Martin

I don’t know about you, but when I heard that I felt validated & wanted to scream, “YES!” to no one as I was alone in my apartment but didn’t want to wake up the dogs.

Planning is very tactical – and related to the costs of your business. We’re going to do this thing and we know the costs. As Martin specifies, strategy is operating with less certainty and you don’t control how your customers will respond to the strategy you’ve adopted.

He speaks in another video on the same topic, but essentially gets at the same points – how do you play this game differently than everybody else? What can you uniquely do that shifts or breaks the paradigm for your end customer that could create market differentiation that customers will fall in love with and prefer to the other players in the same space?

What he calls out that I see all the time – is the angst of change and dealing with that level of uncertainty. Many people, especially in leadership positions, are riddled with fear of breaking anything or making a change that could disrupt how things work. My take is that the fear may even be less about change, but fear of how slow the organization moves/operates to pivot if that strategy doesn’t work and a new one needs to be identified or modified. It’s the assumption or knowledge that the business cannot adapt quickly enough, for whatever reason, to be adaptive enough if customers do or don’t resonate with the strategy you’ve pursued.

While at Coyote, I was fortunate enough to take a Strategic Change Management course through the Kellogg School of Management at Northwestern University that addressed how to identify & craft a strategy so that it’s specific and self-reinforcing (a flywheel effect).

I won’t go into it here but it’s worth noting the difference between a mission statement, a vision statement, values, and strategy. Spoiler alert – the last one is informed by the three prior.

The Three Components of a Strong Strategy Statement

In terms of what makes up a good strategy statement, there are three components:

• Goal – what’s the end point? what’s your finish line? The goal should be tangible, specific, measurable and have a set end point in time. A good way to test your goal is to ask if any competitor – real or hypothetical – would have a contrasting goal to your own. E.g., imagine your strategic goal was to be the “best company in industry X.” That’s not a good goal and here’s why – no competitor would have a goal of being the “worst company in industry X.”
• Scope – specificity matters! You cannot be all things to all people at all times. So where, what, or who are you targeting specifically to reach that goal?
• Logic – this is where you begin to define what the org will do differently or better to deliver uniqueness & outlines the nature of your competitive advantage so that you can actually meet your goal

A Real-World Strategy Statement: The BIC Example

The example we were given was of BIC – yes, like the pens or razors.

You can see each component in the strategy statement. Now, could this be more specific? Yes. How? The goal could be better defined as to have a measurable end point (by year X, in North America, etc.) The scope may seem large, but they are probably looking at some specific competitors in this space, especially when thinking of a global footprint. As for the logic, notice the word ‘disposable.’ What implication do you think this has in terms of a strategy? Why would they choose disposable vs something more sustainable or reusable? Hint: think of the flywheel and the strategy being self-reinforcing.

Strategy Frameworks Worth Knowing

I also reference the below visuals a lot – and I cannot figure out where they originated from. Even Google image search cannot find them. Alas, I assume they’re an amalgamation of ideas – but if you know the source, please let me know so I can cite it!

The “4 P’s” is a classic framework to think about strategy. But sometimes it’s a little too obtuse for my taste.

Now this image below is the one I reference or utilize frequently – it reinforces some of the other points made above, but also helps better show you the components of what makes up your strategy. That different from anything above? Nope. But sometimes people need to see things laid out in such a way for it to click.

The Best Books on Business Strategy

Now, if you prefer your learning from books & reading, then here are two recommendations:

• HBR’s 10 Must Reads On Strategy – a collection (only 288 pages so while you might assume a quick read – it’s a lot to digest but great) of some of the best articles from HBR
• Good Strategy / Bad Strategy – an easier read and focuses on the kernel of strategy, which gets at the same things above just in a possibly more digestible format

Have other books, articles, videos, or strategy-related content that helps ground you? Feel free to share & comment below.

And if you got this far, you’ll know exactly why I used a picture of an Ikea store for this post.

Frequently Asked Questions

What is the difference between strategy and planning?
Planning is deciding what you will do and what it will cost. Strategy is deciding where you will compete and why you will win there – operating with inherent uncertainty about how customers and competitors will respond. Most organizations mistake detailed planning (budgets, roadmaps, initiatives) for strategy. A real strategy has a theory; a plan just has a list.

What are the components of a good strategy statement?
A strong strategy statement has three parts: a goal (specific, time-bound, and something no competitor would claim the opposite of), a scope (who and where you are targeting), and a logic (what you will do differently or better to win in that scope). Without all three, you have an aspiration, not a strategy.

Why do organizations default to planning instead of strategy?
Because planning feels safer. It deals in certainty – costs, timelines, resources. Strategy requires making bets about competitive advantage and customer response without full information. For leaders who fear being wrong, detailed planning provides cover. It also produces deliverables that look like action without requiring the hard choices that real strategy demands.

How does strategy relate to mission, vision, and values?
Mission, vision, and values define why you exist, what you’re aiming for long-term, and how you will behave. Strategy is the set of choices that translates those foundational elements into a specific competitive position. Strategy without mission, vision, and values is rudderless. Mission, vision, and values without strategy are just wall art.

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