Business Strategy Defined - The First Step in Business Planning

A Strategy is Different From a PlanA plan dictates; strategy shapes. A plan is rigid;
The word "strategy" is over-used and its meaningstrategy is fluid. A plan is an order; strategy is a
has become diluted. It is often used synonymously -conversation.
and mistakenly - with the word "plan". Let's clear thisIn business, strategy provides the overall goal, the
up.context in which the goal will be reached, and the
A plan is a Sargent-major. It tells you precisely whatunique approach that guarantees success for the
you should do. "Take three men, your rifles andfirm. All plans then spring from the strategy.
grenades, and start climbing this hill from theStrategy is Unique and Wants to Win
southwest corner. Continue straight up the hill untilLet me emphasize two things: first, strategy defines
you reach the top where you will plant this flag."a unique approach that is unlike any other firm.
What happens if we're outnumbered? What happensStrategy is designed to achieve an objective in a
if we meet enemy machine guns en route? A planway that nobody else can replicate.
can't answer.Second, strategy is concerned with success and
Strategy provides an overall objective but doesn't tellwinning, whether on the battlefield or in the market.
you exactly how to accomplish it. Strategy is theSuccess depends on uniqueness: winning requires an
wise counselor who stands by your side in the heatedge, some form of differentiation, a "secret sauce".
of battle and reminds you of your strengths. "We'llNow that we know how "strategy" and "plan" are
win the war by Christmas using stealth and cunning",different, here's a strict definition of strategy that
goes the strategy. "By the way, plant this flag at thewe'll use in the next article:
top of the hill by dawn." What route should we use?Strategy is a beacon that specifies a goal, a time
"Doesn't matter - but use stealth and cunning." Whatframe for achieving that goal, the context in which
happens if we're outnumbered? "Use your stealth andthe goal will be reached, and the company's unique
cunning." What about the machine guns? "Stealth andapproach that guarantees its success.
cunning."Do you know what your firm's strategy is?