Technically, strategy is a plan of action.


In guru/consulting speak, a "Strategic Plan" is understood to mean a "high-level" statement of direction. All "operational" plans must support the "Strategic Plan". If there is mis-alignment between the two, then there will inevitably be a sub-optimisation of effort and resources (and opportunity).

In a management context, a strategy is the set of actions required to deliver a stated outcome.

From a Board perspective, an "Organisational Strategy" is the way the corporation will deliver its stated KPOs (i.e. its Mission Statement). It is not, "inventing" KPOs to chase and it is not pursuing the "Vision" per se. The "Vision" is the way a corporation/organisation sees itself at some time in the future delivering its Mission - not the other way around. If you have also "invented" your mission (e.g. being the biggest or the "best"), then your vision will give you (assuming you achieve it) something that, in all probability, is unaligned to your shareholders' objectives - and is thus unsustainable.

No shareholder that I know invests in a company because it is the "biggest" or the "best". Rather they invest in it because of the benefits they achieve from it being the "biggest" or the "best". Therefore, understanding the difference between objective and enabler becomes critical.

Ultimately, what "Strategy" means in not as important as having a uniform interpretation within the one organisation. For example, going to a weekend retreat to review a company's "Strategic Plan" will be problematic if some people go expecting to challenge a high-level view while others go expecting to review tactical tasks toward it. Clarity of understanding is important.

As an another example, some organisations draw the distinction between "Strategic Marketing Plan" and an "Operational Marketing Plan". Since both are so intrinsically tied together, the real distinction is between an effective marketing plan and an ineffective one.

In the hundreds of strategic sessions I have run, I always commence with the question of "What is it that this organisation has to deliver to its owners?" Everything follows from that question. If you don't know what your shareholders want, then how can the Board and/or management reasonably justify any corporate activity?