MBA COURSES Tuesday 29th Jan 2019

What is the difference between a plan and a strategy?

  1. Every normal startup has a plan. But not everyone has a strategy.
  2. A plan is a list of actions with a description of their mutual order of execution, deadlines, budgets, and desired results.
  3. A strategy is an interconnected set of choices a company has made to win. Oh how!
  4. The first key point of definition is "to win." The strategy should describe - were in what and at what cost we are going to win. Not unimportant - by what measurable criterion can we know that we have won. Then we have a major metric by which we can judge whether or not we are going to win.
  5. The second key point is "choice." Almost the most important part of the strategy is to give us a criterion in our hands for cutting off what we won't do (even though we really want to).
  6. If we're going to "work to make money," "have our own business," and the like - you don't need a strategy. A plan is enough for that.
  7. Do you only have a plan, Mr. Fix? Or do you also have a strategy? 😉