A Plan Is Not a Strategy
Harvard Business Review
9 min, 32 sec
Roger Martin discusses the critical differences between strategy and planning, emphasizing the importance of strategy for winning in business.
Summary
- Roger Martin explains that strategy and planning are fundamentally different, and mere 'strategic planning' often lacks true strategy.
- He defines strategy as an integrative set of choices that positions a company to win by being better than competitors on a chosen playing field.
- Planning tends to focus on controllable costs and resources without guaranteeing competitive success, while strategy focuses on competitive outcomes that are less controllable.
- Martin illustrates the concept with the example of Southwest Airlines' successful strategy that outperformed traditional air carriers.
- He advises that effective strategy involves accepting uncertainty, laying out clear logic, simplifying the approach, and being prepared to adjust as needed.
Chapter 1
Roger Martin introduces the concept of strategic planning and its historical development.
- Roger Martin introduces the longstanding practice of planning and the newer discipline of strategy.
- He criticizes the term 'strategic planning' for often lacking actual strategy despite its name.
- Martin points out that many business activities labeled as strategic planning are merely lists of actions without a coherent strategy.
Chapter 2
Roger Martin defines what constitutes a true strategy in business.
- Strategy is described as an integrative set of choices that allows a company to win on a chosen playing field.
- A coherent theory of why a company should choose a particular playing field and how it can outperform others is essential for a great strategy.
- Strategy requires translating theory into actions, unlike planning, which often lacks coherence and specificity toward achieving a company goal.
Chapter 3
The differences between planning and strategy are explored, highlighting the comfort of planning and the challenge of strategizing.
- Planning is described as comforting, focusing on controllable costs and resources within a company's control.
- Strategy specifies an outcome based on competitive success, which involves uncontrollable factors such as customer preference.
- Martin emphasizes the difficulty of strategy because it involves predicting customer behavior, which is inherently uncertain.
Chapter 4
Southwest Airlines' strategy is used as a case study to demonstrate the effectiveness of a well-defined strategy over generic planning.
- Southwest Airlines had a clear strategy that targeted being a convenient and cost-effective alternative to bus travel.
- Their strategy included flying point-to-point, using a single aircraft model, not offering meals on short flights, and encouraging online booking.
- Southwest's strategy led to substantial growth, outperforming major carriers who lacked a coherent strategy to win against competitors.
Chapter 5
Roger Martin provides guidance on how to move from planning to strategy and the necessary mindset for successful strategizing.
- Recognition that strategy includes some level of angst is crucial, as it involves uncertainty and cannot be proven in advance.
- Laying out the strategy's logic allows for monitoring and tweaking the approach as the market unfolds.
- Simplicity aids strategy; it should be possible to outline strategy on a single page, focusing on where to play, how to win, and the necessary capabilities and systems.
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