Strategy can be timeless whereas action plan is time specific. These become your strategic measures. Both strategic management and strategic planning are keys to business success in any industry, but few know the difference between the two. The Difference Between Strategic Planning and Annual Planning. It focuses on ‘What’ you want to achieve and not on ‘How’ you want to achieve it. What will happen to your business data if your cloud storage provider goes bankrupt? First, lets look at the difference between a business and strategic plan. About 2,500 years ago, Chinese military strategist Sun Tzu wrote “The Art of War.” In it, he said, “Strategy without tactics is the slowest route to victory. To learn more about the difference between a strategy and a plan (and why a “strategic plan” tends to be a reverse Goldilocks), see our short video “, https://strategicleadersacademy.com/wp-content/uploads/2018/12/strategy-or-plan.png, http://sla2020.wpengine.com/wp-content/uploads/2020/06/SLA-logo-March2020-300x174.png. This is meant to be a measured approach, and in response to the current situation. As a valued Frame client, supplier or partner, I write to provide an update of Frame's current response regarding the COVID-19 virus. I get this question a lot. Without proper planning, strategies will fail. A strategy won’t get executed — not completely and successfully — without other plans. There’s a lot of talk about strategic and master planning, but what is the difference? ... we have slowly but surely figured out the differences between a strategy and a plan… And the difference between both terms is one of those things you must understand as an entrepreneur, because you need to be sure that you are speaking the same professional language as others.So in this article, you will understand the difference between a business plan and a strategic plan. A plan faces inward. However, it only tells half the story. Is it that there are a number of translation steps from the business strategy to the execution of the ICT component of that strategy, coupled with risk and complexity? Leaders excessively concerned with execution can begin to drink their own Kool-Aid, believing that blips in performance are leading toward success. High performance on your implementation tasks coupled with low achievement on your strategic goals is an indication that factors outside your control are undermining your ability to advance your mission and vision. Advice, integrated solutions and services for ICT and digital transformation. With a strategic plan, however, you are not only in the boat, but you can see the point on the horizon where you want to head, and you have a strategy for sailing your boat there on the straightest line possible. Your email address will not be published. What is the significant factor in the lack of success and often disappointing benefit outcomes of ICT strategies? At any given time, there may be long-term goals, for e.g., opening of a new facility or reduced spending. Is there a common understanding of needs, priorities and benefits realisation? The problem, however, is that high performance does not necessarily equal success. And by reducing the spread, we help take pressure off our medical resources (both staffing and required equipment) to allow the focus and required resources to be directed to those most at risk and in need. These two terms, often used interchangeably are far from the same … Each is a completely different concept. Strategy is made in board rooms by top management and action plan is implemented at the ground level by the employees. That’s what a plan … A strategy needs to be detailed — it may even include some sort of timeframe for executing it — but it’s still only high level in terms of how it will be achieved. A major difference between a strategy and a plan is that a business needs just one strategy, a single, targeted combination of business operations that will produce a profit. Getting the strategy right enabled our team of paratroopers to succeed in Afghanistan. Do they need different levels of information explained in different language? Fewer have the capability to do both, the end-to-end lifecycle. It means deliberately choosing a different set of activities to deliver a unique mix of value.” Strategy is the “what” part of the […] A plan explains in detail how the strategy will be executed. The words get used interchangeably. Planning begins with the organization’s strategic plan. We were executing our plan perfectly. Strategy defines your long-term goals and how you’re planni… . Accomplishing the mission or … These analogies are too deterministic and too self-centered for a dynamic and uncertain marketplace. Brad Ferguson The organisations that succeed in both are the ones that take the implementation experience and feed it back to their consulting teams. Strategies and plans have different audiences at different business levels: organisation, division, etc. However, a business plan is used to present the entrepreneur’s ideas to a bank. He has designed and managed the implementation of voice and data networks, financial dealing systems, contact centres, data centres and the associated physical infrastructure, and he specialises in developing strategies, business cases and cost plans. Understanding the difference between a strategy and a plan allows you to make useful strategic planning decisions that separate the two. To successfully develop and implement strategies and plans, here are some other considerations: Clearly, a single document isn’t going to address all of these matters … and all of them have to be addressed; some by the strategy, some by the program and project management plans. Then, to be executed, it becomes a change initiative in the form of a program of work, or part of other programs. Founder of SLA, Chris Kolenda, Ph.D., is the Leadership Ace, helping build winning teams by getting the BIG 3 right. Measuring performance enables you to assess the strength of the execution. But it takes experience and understanding at every level to deliver the expected (promised) business outcomes, in a timely manner. The latest Coronavirus (COVID-19) updates for our customers. Dear valued Client, Suppliers & Partners Goals are dreams that you want to become reality. We felt very good about our performance. However, a business plan is used to present the entrepreneur’s ideas to a bank. What Is the Difference Between a Strategic Plan & a Goal?. An action plan puts your strategy into the heads, hearts, and hands of the people who will make a real, measurable difference by implementing your strategic plan. Goals can be short term or long term and are not necessarily tangible. Others think that a strategy is a plan … A good plan ensures these tasks are integrated and properly resourced. Now that your strategy outlines how everything fits, you can make an implementation plan to direct the activities under your control. Nor is it a blueprint of the bridge from the present to the future. Quite often, people confuse strategy and tactics and think the two terms are interchangeable in strategic planning, but they’re not. This expresses what you intend to do to succeed. The business plan is a key component of the loan process and serves as a foundation for your organization. These statements articulate the reason the business exists and what it wishes to achieve. Through our mentorship programs, keynote speaking, consulting and team trainings, SLA helps leaders master the BIG 3 – leadership, culture and strategy so their organizations can thrive. © Copyright - Strategic Leaders Academy Designed by. A strategy identifies what you need to do to meet one or more business objectives. The strategy is the best plan chosen among the … Difference Between Strategy and Policy June 22, 2015 By Surbhi S 14 Comments In business parlance, the terms strategy refers to is a unique plan designed with the aim of achieving a competitive position in the market and also to reach the organisational goals and objectives. Strategy measures success; a plan measures performance. According to a 2009 Harvard Business Review article “Four Fatal Flaws of Strategic Planning,” 88 percent of companies engage in strategic planning, yet few adequately manage their strategies, and even fewer see their goals completely met. But a plan for what to do, not how to do it. A strategy is not a crystal ball that foretells how your organization can move toward a desired end-state. Thank you and kind regards, A well-planned and executed change is a recipe for success. And programs are executed as projects. A good strategy process will develop and evaluate more than one theory of success, so you can choose the one you think is best. A plan faces inward; A strategy orients on factors you don’t control; a plan focuses on what you do control; A strategy measures success; a plan measures performance; Let’s break these down. ~ Benjamin Disraeli. (And they have been for many centuries!) The marketplace is in a constant state of flux, influenced by factors like technology, social and political changes, government policy, competitor choices, and so forth. To get the whole picture and have a framework on which to build your business you also need a strategic plan. How you believe they will unfold and shape the future become your assumptions. Is there a measureable business benefit realisation framework? All of our metrics indicated that we were on an upward trajectory. The Plan. Your plan faces inward. Short answer: a strategy is zooming out and thinking about the big picture of what you’re setting out to do, while a plan is zooming in and focusing on the specific steps you’ll need to take. To admit that is to recognize that the plan is flawed. Our services will continue to be provided throughout this period to the same high standard as we have always prided ourselves upon. The technical term for this is confirmation bias. A strategy orients on factors you don’t control; a plan directs what you do control. ... but you are doing your best to react to your environment. Change is inevitable. According to strategy guru Michael Porter, “Competitive strategy is about being different. A plan tackles questions like how, when, where, who, and what? Here are three critical differences between a strategy and a plan: A strategy faces outward, first. What’s the Difference Between a Strategy and a Plan? Understanding what matters most to your organisation, The Frame Group provides clarity, insight and hands-on delivery of ICT and digital services for better ways of doing business. Here are three critical differences between a strategy and a plan: A strategy faces outward, first. However, should you require any additional information, please do not hesitate to call 1300 252 789 or directly contact your current Frame Account, Business or Project Manager. When you revise your assumptions, you may need to modify your strategy. A plan faces inward As of today (16 March), we have issued a "working from home" to all personnel, across all offices. That’s where the strategy is justified and costed for it to be considered and approved. It identifies: If you think the list looks like a project management plan, then you’re right. But what you can do is develop a tool that monitors and addresses these external drivers of change. A strategy document serves a different purpose to a strategic plan. What differentiates a strategic framework from a planning framework in terms of conceptualisation, development and execution? Creating a Winning Culture: 3 Things You Can Learn From The Cleveland Brown... A strategy orients on factors you don’t control; a plan focuses on what you do control, A strategy measures success; a plan measures performance. Do the sponsors and the implementation team know when the delivery of the change initiative has reached a tipping point. Your email address will not be published. A strategic plan is used to communicate the direction of the organization to the staff and stakeholders. Indeed, definitions of ‘strategy’ often call it a ‘plan’. A strategic plan is used to communicate the direction of the organization to the staff and stakeholders. The Difference Between Your Product Strategy, Roadmap and Plan ‘Product Focus’ is an excellent product journal released every few months, which focuses on Product Management, including challenges faced in the industry and ideas for different approaches. The remaining 25 per cent had some middling success, but did not meet the full potential of the strategy devised. . This can reinforce the blinders and refuel the desire to do the same things over and over again, but expecting different results. A strategy identifies what you need to do to meet one or more business objectives. We were working hard, creating efficiencies, and consistently improving. Estimating & cost planning in the Consumption of Services Economy – the marketplace, Why containerised data centres are in demand, The secret to growing your business: focus on your customers’ journey, Governance, risk management and compliance, Implementation, relocation, migration and transition, what’s to be done (activities and tasks to be executed), who does what (roles and responsibilities), when it has to be done (a schedule of activities and tasks and who’s assigned to them). A sound strategy helps our clients to create sustainable growth and impact. The approach we are taking, is to assist in reducing the spread of the virus, particularly to those most at risk. These activities should be properly resourced and integrated, and then broken down into team and individual workplans. To learn more about the difference between a strategy and a plan (and why a “strategic plan” tends to be a reverse Goldilocks), see our short video “Strategy versus Strategic Plan.”. Required fields are marked *. Having a strategic plan in place to drive the master planning process will aid in your success. A strategy is a hypothesis based on your diagnosis and chosen theory of success. Your strategic plan outlines long-term goals for the next three to five years. Difference between Human Resource Planning and Strategic Planning Difference between Human Resource Planning and Strategic Planning. This is a difficult truth to swallow, especially for leaders. A comprehensive, detailed strategic plan designed to guide the communications of an organization or of a significant initiative or issue. Your strategy should outline your mission, vision, values, and goals. Keep your impact and outcome measures separate from your performance measures. It is designed to direct an organization’s high level communications, and often has a three-year time horizon, with a more detailed implementation plan … A sound strategy helps our clients to create sustainable growth and impact. A proper strategy is explicit about these assumptions, allowing you to monitor them as the future unfolds. The Difference Between A Communication Strategy And Plan, And Why You Need Both. and critically, how you’ll ensure it gets done on time and within budget (risk management, quality management, communication management, resource management, stakeholder management, change management, financial management). Strategy helps you expose disconnects between success and performance, ask the right questions, and adjust as the marketplace shifts under your feet. What’s the difference between a strategy and a plan? What you’ll be doing to achieve those goals in the shorter term (typically the next fiscal year) is outlined in your operational plan. Others have a distinct capability in implementing such strategies through competent project management and all the other management disciplines that come with it. Most businesses set out a mission or vision as part of the early development process. Karl is well respected in the ICT industry for his integrity, drive, commitment, client relationship management and excellent project management skills and experience. The strategy may not always be effective during ebbs and flows in the business cycle, but it defines a business. And it is a plan. A strategy needs to be detailed — it may even include some sort of timeframe for executing it — but it’s still only high level in terms of how it will be achieved. Communications Strategy. Your plan outlines the critical tasks you selected as important to implementing your strategy. That tool is your strategy. Corporate Planning vs Strategic Planning In the surface level, strategic planning and corporate planning are interrelated though, there is difference between corporate planning and strategic planning in the sense that strategic planning refers to the larger extent when compared to the corporate planning. This establishes the context in which you will advance your vision and mission. All our offices and normal communication channels remain open and functional as always. I learned that while successful organizations perform at a high level, the reverse is not necessarily true. Tactics without strategy is the noise before defeat.” Tactics and strategy are not at odds with one another—they’re on the same team. Strategy always comes first and action plan takes place later. It is a best guess that relies on assumptions about the future and factors you so not control. A strategy faces outward, first. The Difference Between a Plan and a Strategy. Your strategy should identify those factors most likely to affect your outcomes. When we begin talking, many of my clients express the unsettling feeling that something is missing – and that missing “something” is creating a gap between high performance and success. It focuses on how to execute the course of action delineated in your strategy. What does success look like and how do you measure it? Revising your assumptions later on is not a sign that you were wrong, but a reflection that you have been sensitive to the salient changes in the environment. One wonders what percentage of the successful 5% and mildly successful 25% were ICT strategies. Getting the strategy right enabled our team of paratroopers to. Currently this is limited to those that need not attend a client's site in order to perform their work. The major differences between Planning and Strategy are as under: Planning is anticipation and preparation in advance, for the uncertain future events. So a single strategy may be executed under several different plans — program and project management plans. Unlike your marketing strategy, you'll use the marketing plan more frequently; referring back to it as you implement your plan and monitor your findings. What we are directing our employees to do, what we are prioritizing, and what we are measuring may all be off-target. A strategic plan ensures any growth initiative is undertaken in a coordinated, systematic and informed way, for the best possible odds of success. Living documents. Your goals should focus on the impact and outcomes you seek to achieve. Both a business plan and a strategic plan are living documents that must be reviewed at least annually. Our intent is not to provide any interruption or degradation of our services to our clients, whilst at the same time minimising the social interaction of as many people as we can. This we cannot ignore. Learn more about reviewing your findings in this blog: 5 Steps for Successfully Reviewing Your Marketing Plan . The difference between strategy document and strategic plan. A Communications Strategy typically includes an in-depth Strategic Considerations section providing sound analysis of the internal and/or external environment. A strategic plan is an organization’s process of defining its direction, and making decisions on allocating its resources to pursue this direction. You need to understand these factors and adjust your strategy and plan accordingly. Once you have outlined the context, you can develop your theory of success. A plan is usually a list of steps taken to accomplish a goal. © The Frame Group Pty Limited 2013–2020   |   ABN 48 095 369 403   |   Privacy statement    |   Terms of use. I thank you for your continued business and relationship, and will provide further updates only if, and when, appropriate. This context is always dynamic. Confusion between these different documents causes good strategies to be described badly. What is the difference between strategy and planning? You cannot simply wish them away. It is not that people don’t understand planning, but there is often an unclear line in their minds between where strategy stops and planning starts. The normal approach to this problem is to stay on the trajectory but work harder, in the belief that this will lead to incremental progress and greater efficiency. To get from a strategy to a plan there’s usually a business case. Another way to grasp the difference is by understanding the difference in ‘scale’ between a strategic plan and a business plan. Save my name, email, and website in this browser for the next time I comment. First it’s important to note that in business it’s not uncommon for different meanings to be ascribed to “common” terms. That was exactly how I felt after the first 60 days as a commander in Afghanistan. And that means promised benefits won’t be realised and business objectives won’t be achieved. Perhaps the vision and desired outcomes are far less clear once organisations navigate through the investment and execution stages. Key Differences Between Planning and Strategy. Here’s how we define the tactical vs. the strategic: 1. At Excitant, we make a very clear distinction between these two documents: they have quite different purposes. Change is constant. Another way to grasp the difference is by understanding the difference in ‘scale’ between a strategic plan and a business plan. This is because impact and outcomes are influenced by factors you cannot control. As outlined above, a wide range of factors will impact the environment within which your business exists and may potentially impact how successful you can be within a given context. That’s exactly what it is because that’s exactly what you need to execute the strategy: a project with a plan. Frame makes a difference because we cut through the noise and zero in on what you need. Whilst I do not believe that the majority of us are at serious risk, however, current statistics show that the over 70's and those already with a chronic illness are at a very serious risk. A plan is a … It is our intent to keep this procedure in place until 27 March unless the situation requires it to be extended or shortened as appropriate. A Communications Strategy typically includes an in-depth Strategic Considerations section providing sound analysis of the internal and/or external environment. A sound strategy begins with a diagnosis of the current marketplace and your place within it. It allows you to act in line with General George S. Patton’s insightful quote, “Never tell people how to do things. Citing a recent article from the Australian Institute of Company Directors: Dr John Kotter, Konosuke Matsushita Professor of Leadership, Emeritus, at Harvard Business School, found that around five per cent of all organisations implemented their strategies successfully, while 70 per cent of strategic initiatives failed to meet their objectives. CEO. Many organisations have distinct capability to provide business advice in terms of developing strategies for changes to things like ICT or the organisation itself. The difference between a strategy and a plan.