If That’s Strategic - What is Strategy?
The more comfortable we are with business jargon, the more clearly we can think – and the more confidently we can decide, compete and lead.
Over the past four weeks, I’ve been talking about the differences between task, tactical, operational, and strategic thinking, decisions and activities. Now it’s time to explore a bigger question and clarify what is meant by ‘strategy.’
If that’s strategic thinking – what exactly is a strategy?
It’s a distinction many miss – or misunderstand. And that creates problems.
Strategic thinking is a way of approaching a problem or working out what to change, develop or do to achieve a meaningful goal or pursue a worthwhile ambition.
In simple terms, a strategy is the result of that thinking. It’s a higher-level decision about what to do to overcome a challenge, gain an advantage, or maximise an opportunity to move ahead more successfully.
Strategy vs. Plan
People often confuse a strategy with a plan. But they’re not the same.
Strategy:
A strategy is a clear decision about what to prioritise, where to focus, and what to do – to solve a problem, achieve a meaningful goal, or realise an inspiring vision. It sets out a clear intention and points everyone in the same direction.
Plan:
A plan says how you’ll put that strategy into action. It gives everyone a roadmap to follow.
A strategy is the bridge between a challenge and a breakthrough. It helps you move forward with more confidence. But it’s not always easy. Strategy demands clarity, insight – and often, courage. It requires you to face uncertainty, feel the pull from different directions, identify and weigh up your best options, and make a call that matters.
At some point, you have to say yes to one thing – and no to many more. And more often than not, you need to do it without all the facts in front of you.
Planning is only needed once the strategy is decided. When done well, a plan is a record of the thinking that went into the decision and the actions that followed. It says where we’re going, what will be done, when, and by whom.
The sequence matters:
- Identify the goal or problem. (That’s your motivation.)
- Decide what will address it. (That’s your strategy.)
- Map out how you’ll do it. (That’s your plan.)
- Put it into action. (Those are your tactics.)
Strategy Starts with a Problem Worth Solving
Most good strategies begin with a challenge or a problem worth solving – something preventing progress. It might be internal or external. It might be something you want to avoid, eliminate, overcome or capitalise on – to move forward. It might be a decision about where to position or how to compete. There will be options to consider, consequences to evaluate, tension to face – before a decision is made.
Examples of strategic questions related to strategic challenges include:
- “What business should we be in?”
- “What market will we choose to serve?”
- “How will we compete and win more customers?”
- “How could we attract and retain more of the right people?”
- “What could we change to solve a recurring problem—permanently?”
There will be multiple options – and not one right answer.
Making strategic decisions requires trade-offs – for the customer and the company.
The key to a good decision is to understand the issue clearly, explore your options, and then commit. A strategy is not a bet both ways. It’s about saying no to all the options except one -the one you will commit to.
But in a dynamic marketplace, things change. Strategic decision-makers must learn to anticipate the maybes, and ask: what if?, what else?, and what’s missing?
Nothing stays the same forever – and no strategy is cast in stone. When new information comes to light (and it will), you must pause, clarify – and if needed – adjust your decision, or even your direction. But never in an instant. Good strategy takes time. Strategic decisions deserve it.
Strategy Belongs Everywhere
Strategy isn’t just for the boardroom. It belongs in:
- Your business model
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Your marketing
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Your product development
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Your packaging and pricing
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Your operational performance
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Your people and culture decisions
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Your financial management … and more.
The best strategies serve a vision. Together, they direct daily decisions.
If you choose to be more strategic, you could start by developing a strategy to complete tasks more efficiently, deploy tactics more effectively, manage, guide and lead people and operational development better, to shape performance and drive results more successfully.
Innovation often underpins the best strategies – those that give you an edge or advantage.
One that (if successful) others will eventually copy. But that’s fine – because by then, you will have moved on. Often, the best strategy for innovative businesses is to disrupt and reinvent themselves – before someone else does. They stay nimble, stay ahead, stay focused and lead. Never follow.
A Real-World Example
A number of years ago, I co-founded an internet (ISP) company targeting university students in high-rise city apartments. What I saw was a problem that looked to have the hallmarks of a commercial opportunity.
We surveyed students in our target market and confirmed their frustrations with existing providers. They were ready to switch – if they could find a provider that better suited their wants, needs, and preferences.
At the time, the market was dominated by large corporate providers who all offered the same inflexible plans:
- 12-month contracts – for students who went home 8-12 weeks each year
- High connection and disconnection fees – tough for low-income students
- Mandatory modem purchases – despite their laptops having them built-in
- No flexibility to upgrade or downgrade – when and how they wanted
- A need to call or visit a store to open an account or get help – they felt a text was much better
- Slow upload and download speeds – frustrating – especially when most were avid gamers
We called it “Internet Your Way.”
The strategy was simple: Remove every barrier the big players had created – and do it at a profit.
- No contracts
- No modem
- No waiting
- No limits
- Just fast, reliable fast, affordable internet – on demand.
The trade-off? Prepaid monthly – online only.
The strategy worked. They lived on their internet – day and night – and often referred their friends.
The reason? Our clear understanding of the problem, the customer, and a genuine customer-focused strategy – that the big players couldn’t (or wouldn’t) match.
Our strategy was successful on two fronts: it made our customers happy and earned their loyalty, and it enabled us to build a high-tech, low-touch, fully systemised, and automated business, designed to run online from anywhere – with minimal need for support.
What started as a side hustle spun out of our IT services business soon became a standalone international company operating in its own niche in three countries.
Final Thought
Strategy isn’t about writing a long-winded plan. It’s about clarity, cut-through, and consistency:
- What’s the vision?
- What’s the obstacle?
- What’s the opportunity?
- What will we do about it?
Once you’ve got your answer – you’ve got your strategy.
Now you can communicate the vision, share the strategy, and build a plan others can follow. The plan clarifies the direction, guides the actions, aligns resources and people. It helps everyone stay on track, feeling motivated, and playing their part to keep moving forward.
That’s what a great strategy promises, does, and is for. It’s not a goal – or a plan.
Do you have a strategy?
Before you move on with your day – take a moment to think about what you just read.
Which of the concepts, ideas or questions in this article stood out to you? What if you invested just 20 minutes of your day in focused strategic thought? What might that shift, for the better? There’s only one way to find out. Give it a go.
Let me know what you think, better still, let me know what you do – and what you get.
If you want help addressing an issue, clarifying your vision, developing a strategy, or building a smart plan, a strategic reset might be worth exploring. Feel free to get in touch.
Next time … we’ll take a look at what makes a good strategy great – and how to spot a weak one – before it gets in your way.
Cheers,
Geoff
