In the world of business, there’s a common misconception that having a detailed plan equates to having a solid strategy. However, as Roger Martin eloquently explains in his video A Plan Is Not a Strategy, these two concepts are fundamentally different. Understanding the distinction can be the key to long-term success and competitive advantage.
The Difference Between a Plan and a Strategy
A plan is often a set of steps or actions laid out to achieve a particular goal. It includes tasks, timelines, and resources needed to execute an initiative. However, a strategy is much more than that—it is a coherent set of choices that positions a business uniquely in the marketplace.
A strong strategy answers essential questions such as:
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Where will we play? (Choosing the right markets, customer segments, and product focus)
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How will we win? (Identifying a competitive advantage that differentiates from competitors)
A plan focuses on execution, but without a strategy, execution can be directionless and ineffective.
Why a Plan Alone Won’t Lead to Success
Many businesses fall into the trap of thinking that a detailed plan with clear action steps is enough to succeed. However, without a guiding strategy, a business can quickly become reactive rather than proactive. They may execute well but fail to carve out a winning position in their industry.
Martin illustrates this by pointing out that businesses often spend too much time refining operational details rather than making strategic choices. If a company lacks a unique positioning, no amount of flawless execution will secure a competitive advantage.
How to Develop a Real Strategy
To build a winning strategy, businesses should focus on making bold and specific choices rather than merely creating lists of actions. Here’s how:
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Define Your Playing Field – Identify the market segments and customer groups where your business can compete most effectively.
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Choose Your Competitive Edge – What makes your business unique? Why would customers choose you over competitors?
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Align Resources with Strategic Choices – Ensure that investments, talent, and technology are focused on strengthening your advantage.
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Stay Flexible and Adapt – A strategy is not static; it evolves based on market changes and competition.
Applying This to Local Businesses
For local businesses, this distinction between a plan and a strategy is crucial. Many small business owners focus on operational plans—marketing calendars, advertising budgets, and hiring schedules—without first making strategic choices that define how they will stand out in their industry.
For instance, a local coffee shop may create a plan to post on social media daily and run weekly promotions, but if it doesn’t have a strategy—such as being the only café in town offering organic, locally sourced coffee—it risks blending into the noise of competition.
Final File
A plan without a strategy is like a ship sailing without a compass. You may be moving forward, but you have no guarantee you’re heading in the right direction. Businesses that take the time to develop a solid strategy—one based on distinct choices and competitive positioning—are far more likely to achieve sustainable success.
At Found On Local, we help businesses not just create marketing plans but craft strategies that lead to long-term growth. Whether you need to refine your brand positioning, dominate your local market, or find a way to differentiate from competitors, we’re here to help.
Want to take your business strategy to the next level? Let’s talk.