A Plan Is Not a Strategy
Introduction
- Planning and strategy are often confused, but they are distinct concepts in business.
- Strategic planning involves making choices that position a company to win in a competitive market.
Concepts
- Planning: Setting out activities and resources a company will engage in.
- Strategy: An integrative set of choices that position a company to win in a competitive market.
Content
- Strategic planning is not the same as strategy; it often lacks coherence and a clear theory of winning.
- Strategy involves making choices that differentiate a company and create a competitive advantage.
- Southwest Airlines' strategy of point-to-point flights and cost efficiency led to its success.
Insights
- Planning focuses on controllable resources, while strategy focuses on competitive outcomes.
- Strategy requires accepting uncertainty and developing a clear theory of winning.
- Simplifying and clearly articulating a strategy can help guide decision-making and adaptation.
Key Points
- Planning focuses on controllable resources, while strategy focuses on competitive outcomes.
- Strategy requires accepting uncertainty and developing a clear theory of winning.
- Simplifying and clearly articulating a strategy can help guide decision-making and adaptation.
Conclusion
- Strategy is essential for long-term success in a competitive market, while planning alone may not lead to sustainable growth.
Further Reading
- Good Strategy Bad Strategy by Richard Rumelt
- Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne
- Playing to Win: How Strategy Really Works by A.G. Lafley and Roger L. Martin
