Elmir Abbasov’s Post

Strategy and plan are not the same terms: Strategy is a logic, and planning is a process. Many people confuse these terms - Jeroen Kraaijenbrink has a great explanation of the differences. The confusion around the concept of strategy largely arises from its misuse. People often use the term "strategy" to describe something special, like "strategic marketing" or "strategic finance." They also use it casually in everyday conversations to talk about their plans to achieve goals, such as "my strategy to get better grades is to study 10% more every day." However, in business or organizations, strategy means something specific. If every plan, approach, or process could be called a strategy, it would lead to confusion. Here's the key difference: → Strategy is the logic behind how an organization creates and captures value, while planning is the process. To put it differently: → Strategy defines goals, while planning helps achieve them. A strategy delineates the rationale behind an organization's value creation and capture process. In Jeroen's book, "The One-Hour Strategy," it is described that strategy encompasses: a) The identification of target customers and competitors (Market),  b) The selection of products and services offered (Magic),  c) The utilization of assets and capabilities (Means),  d) The methods employed to generate revenues (Money),  e) The strategies for leveraging the environment (Momentum), f) The underlying reasons for pursuing these actions (Meaning). This can describe an organization's current strategy, intended strategy for the future, and realized strategy based on implementation. None of this directly relates to a plan. A plan details the steps, resources, and timeline needed to achieve specific goals. While a plan may be developed to implement a strategy, it's not the strategy itself. Goals stem from the logic of the strategy and guide planned actions. It's crucial because many organizations claim to have a strategy but lack the overarching logic behind value creation. They may have plans and goals but lack the derived strategy. Now, the key question is: Does your organization truly have a strategy, or is it merely operating on plans? __ Repost so your network can learn the differences too! Follow Igor Buinevici for more useful insights. Do not forget to follow Jeroen Kraaijenbrink!