Strategy vs Planning

The following is extracted from Don't Let Strategy Become Planning by Roger Martin at HBR Blog.

"Strategy is not planning — it is the making of an integrated set of choices that collectively position the firm in its industry so as to create sustainable advantage relative to competition and deliver superior financial returns. I find that once this is made clear to line managers they recognize that strategy is not just fancily-worded budgeting and they get much more interested in it."

"That strategy is a singular thing; there is one strategy for a given business — not a set of strategies. It is one integrated set of choices: what is our winning aspiration; where will we play; how will we win; what capabilities need to be in place; and what management systems must be instituted?"

"This conception of strategy also helps define the length of your strategic plan. The five questions can easily be answered on one page and if they take more than five pages (i.e. one page per question) then your strategy is probably morphing unhelpfully into a more classical strategic plan."

The important five questions to ask:

1. What is our winning aspiration?

2. Where will we play?

3. How will we win?

4. What capabilities need to be in place?

5. What management system must be instituted?