Strategy vs. Planning: What’s The Diff?
Did you hear about the couple who recently renovated their outdated home? You probably didn't because I'm making this up right now.
So anyway, this couple spent WEEKS researching fancy appliances, picking out furniture, selecting materials and paint colors, debating the pros and cons of an open concept bathroom, picking out the right contractors, and scheduling the work.
Each of their choices, taken individually, was brilliant. But somehow it didn't add up to the home they wanted.
That couple doesn't exist, but that pattern of behavior is common in organizations. I've done it plenty of times myself. This is what Roger Martin means when he says, "Planning is not strategy."
Making a strategy means making a set of decisions to do this and not that.
In his book, Playing To Win, Martin boils it down to a set of five decisions:
What is our winning aspiration?
Where will we play (given our winning aspiration)?
How will we win (given our where to play choice)?
What capabilities must be in place (to support our first three choices)?
What management systems are required (to pull it all together)?
Strategy is making choices. “Our renovation goal is resale value rather than personal enjoyment of the space.” Those strategic choices guide the planning and make it much more effective.
It’s easy for organizations to jump straight into planning. It’s practical. It’s concrete. And it feels like progress.
Making strategic decisions can be nerve-wracking because you might get it wrong.
Should you expand your program variety? Or double down on a niche that few others are focusing on?
Should you prioritize major giving? Mass channel giving? Or grant funding?
Should you rely on volunteers or paid staff? Or some hybrid with contractors?
These are strategy decisions that inform your planning. Roger Martin boils strategy down to a set of five decisions that every organization must make. These five decisions can be easily communicated, tested, and improved over time.
When an organization makes the effort to create a solid strategy, their planning efforts suddenly become much more effective.
Have a great week!
