Strategy vs. Planning: Know the Difference

Only 60% of middle-market CEOs have a formal growth strategy. Among those strategies, only a few qualify as true strategy.

Strategy expert, Roger L. Martin offers a clean definition: Strategy is an integrative set of choices that positions you to win.

So here are a few things strategy isn’t.

Strategic planning isn’t strategy

Strategic planning borrows the word strategy, but the output is usually a wishlist or to-do list: increase our footprint, run a big marketing campaign, attract top talent, and grow revenues. Your competitor’s list probably sounds the same, so checking off items likely won’t set you apart. Planning makes sure things get done, but if it isn’t creating advantage, it isn’t strategy.

Watch: A world leader in strategy distinguishes between planning vs. strategy

Year-over-Year goals isn’t strategy

We often come across growth targets set as a percentage increase on prior performance. You could expect a certain amount of growth based on last year’s numbers and activities if nothing about your business and market ever changed. But you know your business doesn’t exist in a vacuum and that markets change all the time. That’s why, if you’re chasing growth by doing more of the same, you could stall and fall or, best-case scenario, you eventually plateau. Last year’s numbers won’t tell you what’s coming down the pike, find opportunities, or point out pitfalls. Setting incremental goals is a backward view, and strategy requires you to face forward.

Your vision and mission statements isn’t strategy

Some companies mistakenly equate setting a vision and mission with strategy. While important, they are only part of the equation. The problem worsens when activities and metrics are disconnected from the vision and mission, making it hard for employees to connect their daily tasks to strategic outcomes. According to Gallup, only 32% of the US workforce feel strongly connected to their organization’s mission or purpose. Vision paints a picture and mission finds place in that vision, but strategy is only complete when every activity and every employee finds meaning, value and belonging.

More than 40% of mid-market CEOs are running companies without a formal strategy. As your first strategic choice, make sure your company isn’t one of them.

Strategy at Stratwell

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Sources:

• 60% statistic: “Strategic Planning for Growth: How Middle Market Companies Map Their Futures,” National Center for the Middle Market, accessed October 27, 2025.

• 32% statistic: Jim Harter, “Anemic Employee Engagement Points to Leadership Challenges,” Gallup, August 5, 2025, accessed October 27, 2025.