Strategy is not a document, a workshop output or a set of planned activities. Instead, it’s the logic that guides how an organisation creates and sustains impact.
There’s a shift underway in how for-purpose leaders are looking at strategy.
Getting it right brings unprecedented alignment across the organisation, a clear focus on impact, new and unexpected business development opportunities, and greater return on investment.
For years, organisations have produced strategic plans that look polished, seem to tick the governance box, and provide a ‘sense’ of order via a list of activities – yet contain very little actual strategy.
As the world’s number one management thinker Roger Martin puts it (in one of the most viewed clips on Harvard Business Review):
“A comprehensive plan—with goals, initiatives, and budgets—is comforting. But starting with a plan is a terrible way to make strategy”.
The problem isn’t that planning is bad, but that too often it is mistaken for strategy. As our own conversation here with Roger Martin (now with 100K+ views) highlights – planning is not strategy. The two shouldn’t be conflated: they are fundamentally different.
The work of planning
Planning is a set of activities that an organisation says it will do. It’s the act of laying out projects with timelines, deliverables, budgets, responsibilities, and tracking delivery.
It is about managing what is within an organisation’s control. It answers questions such as how much are we going to spend and on what? And, who is responsible and by when?
These are important questions. But they are not strategy.
Author of Good Strategy/Bad Strategy, Richard Rumelt says:
“A long list of ‘things to do,’ often mislabelled as ‘strategies’ or ‘objectives,’ is not a strategy. It is just a list of things to do.”
A linear plan assumes predictability – a clear sequence from vision to implementation. It provides structure and accountability, but assumes that no new information emerges, and that funders, policy settings, market or funding conditions won’t change mid-cycle.
When those assumptions inevitably are tested, such plans often push leaders to escalate commitment to a failing course of action with problems attributed to ‘unexpected setbacks’.
What then is strategy?
At its core, strategy creates and captures value by getting clear on the logic around where an organisation will have impact – and how it will have impact. It is a set of principle-based decisions that define a coherent approach to how it will deliver unique value and impact.
Strategy must operate as an enduring, impact-led framework focused on outcomes, grounded in principles and resilient to significant change. It is not a one-off plan, nor something so fixed that it cannot evolve as new information emerges. It needs to be externally attuned and provide clear, ongoing guardrails. By focusing on outcomes and principles, strategy guides decision-making when the future is ambiguous, requiring leaders to be explicit about trade-offs, constraints and direction.
“Strategy is not the consequence of planning, but the opposite: its starting point.” — Henry Mintzberg
Strategy and planning: complementary but different
Strategy and planning play distinct but interdependent roles. Strategy provides the logic and core choices; planning is the execution layer – the steps, resources and timelines needed to deliver that logic.
The distinction matters because organisations that confuse the two risk becoming inward-looking. They may optimise current operations and activities while missing emerging opportunities, risks or changes in the environment, and the opportunity to have the most significant impact.
This does not imply a hierarchy or a choice between strategy and planning but highlights how each plays a distinct role. They are not competing ideas.
“Instead of substitutes, strategy and planning should be complements.” — Roger Martin
Effective strategy needs thorough planning; just as planning has limited value without clear strategy.
Practical steps
Here are some practical ways for keeping strategy and planning distinct, connected, and effective in practice.
Start with logic, not activities
Before jumping into linear timelines, clarify what you are trying to achieve. In which cohorts and segments you will focus and how do you intend to create impact? Shifting from a sequential planning mindset to a strategy mindset requires establishing the logic first.
Make explicit choices
Be clear about what you will do and what you won’t. Explicit trade-offs create alignment and stop resources being spread too thin. As renowned strategist, Michael Porter puts it, “The essence of strategy is choosing what not to do.”
Use principles
Define a small set of strategy principles, or ‘strategy intents’ that will stand the test of time. This will guide decisions as circumstances shift, maintaining coherence without limiting responding to inevitable change.
Separate strategy from planning cycles
Allow strategy to evolve in response to major external changes. Keep planning cycles annual or quarterly, but do not let them solely dictate strategic thinking.
Translate strategy into execution
Once the strategy is defined, it should drive the plan which focuses on a small number of critical initiatives, allocates resources, assigns ownership, and sets milestones.
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