Often times, the words “plan” and “strategy” are used interchangeably. The meanings of the words are quite similar; a method for achieving an end.
Here’s the truth:
There are strong differences between these words.
It’s important for a company to understand the difference between having a plan and having a strategy. This is because although they each have strengths and purposes, they aren’t necessarily interchangeable. The differences in types of industry, clients, and projects call for one method or another.
What is a Plan?
A plan is an arrangement, a pattern, a program, or a scheme for a definite purpose. A plan is very concrete in nature and doesn’t allow for deviation. If “Plan A” doesn’t work, you don’t alter “Plan A” and try again. Rather, you move to “Plan B;” something totally different.
A plan is most useful when staying well organized and on-track is the highest priority. A plan provides a coherent framework from which to build and a sure direction to follow, with intermittent milestones to pass in order to reach an end goal. A plan gives confidence and stability. A plan increases the transparency of your work, leaves no room for assumptions, and can prove that you’ve put in a lot of thought and effort.
Types of plans include:
- Financial: Must be rooted in reality and universally accepted
- Tactical: Concerns the responsibility and functionality of lower-level departments
- Operational: Focused on specific, routine procedures and processes
- Succession: Don’t skip a beat should a major player suddenly depart
- Contingency: Be proactive in vetting a researched and realistic backup
What is a Strategy?
A strategy, on the other hand, is a blueprint, layout, design, or idea used to accomplish a specific goal. A strategy is very flexible and open for adaptation and change when needed.
A strategy is most useful when creativity, collaboration, and innovation are of the utmost importance. A strategy encourages openness and debate from every side of the equation. A strategy embraces questions and out-of-the-box, effective answers. A strategy allows for a natural flow of thought and continual momentum that builds until success isn’t only reached, but expectations are blown out of the water. A strategy can surprise, impress, and put you on track to becoming a competitive powerhouse.
The building blocks of building a good strategy includes the following actions:
1. Framing the right questions
2. Learning from the past
3. Diagnosing the whys
4. Forecasting the future
5. Searching potential pathways
6. Choosing how to integrate
7. Committing to changes
8. Evolving when it’s necessary
Example of Strategy and Planning
Business Strategy vs Plan:
A business team may have a plan to roll out a new product. Research, design, manufacturing, product placement, and marketing will all take place within their designated time frames and on budget. New products will continue to go through the same process until the customers decide on a winning product.
In contrast, a business team with a strategy will take the lessons learned from the past to determine what can be done differently, earlier in the process of product development. Innovation will be applied throughout the design and manufacturing processes. The team will use foresight to determine what customers will want (even though the customers themselves might not know it yet) and creative marketing techniques to ensure a winning product.
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