Uncertainty has become the new normal in the business world, with 84% of executives believing their organizations are not prepared for the next disruption. The root cause of this problem is often a case of mistaking planning for strategy. Planning is about creating a list of actions, while strategy is a set of interrelated, intentional choices about where to play, how to win, and what to do.
This distinction matters now more than ever, as an economy defined by geopolitical tension, supply-chain fragility, AI disruption, key resource constraints, and shifting consumer behavior demands bold, strategic decisions. Mistaking activity for strategy is proving costly, with organizations often confusing movement with momentum.
However, there are examples of companies that have resisted this reflex to over-plan and made deliberate, sometimes unpopular choices that gave them direction when others drifted. These include IKEA, which has stayed consistent for decades by staying anchored to one clear choice: making good design affordable for the many, not the few. Nintendo has outperformed its competitors by ignoring the arms race and defining its own game. LEGO has redefined its core mission to become a global leader in creator play, rather than just a manufacturer of toy bricks.
Novo Nordisk's success has been built on strategic focus over tactical plans, with a clear direction: expand leadership in diabetes and metabolic health care. The payoff has been significant revenue growth and operating profit increases.
So why do so many leaders cling to planning? Because planning feels safe, it creates the illusion of progress with slides, charts, and milestones that comfort shareholders. Strategy, by contrast, feels risky, requiring courage, clarity, and a willingness to think longer-term when short-term pressures dominate.
To avoid this confusion, leaders can make three shifts: be clear on their ambition, start by clarifying where to play and how to win, ensure they're having these conversations, treat strategy as dynamic choice-making, surface, challenge, and update assumptions, not goals. Successful companies prove that clarity, not rigidity, drives resilience.
The cost of getting it wrong is predictable: organizations will optimize yesterday's business model, reward activity over impact, and lose confidence and coherence. In contrast, BCG research shows that organizations with precise alignment of purpose, strategy, and culture can generate significantly higher shareholder returns.
Ultimately, leaders who thrive won't be those with the best laid plans, but those with the clearest direction โ and the courage to hold it. Planning is about control; strategy is about courage. So ask yourself: are we executing a plan, or living a strategy?
This distinction matters now more than ever, as an economy defined by geopolitical tension, supply-chain fragility, AI disruption, key resource constraints, and shifting consumer behavior demands bold, strategic decisions. Mistaking activity for strategy is proving costly, with organizations often confusing movement with momentum.
However, there are examples of companies that have resisted this reflex to over-plan and made deliberate, sometimes unpopular choices that gave them direction when others drifted. These include IKEA, which has stayed consistent for decades by staying anchored to one clear choice: making good design affordable for the many, not the few. Nintendo has outperformed its competitors by ignoring the arms race and defining its own game. LEGO has redefined its core mission to become a global leader in creator play, rather than just a manufacturer of toy bricks.
Novo Nordisk's success has been built on strategic focus over tactical plans, with a clear direction: expand leadership in diabetes and metabolic health care. The payoff has been significant revenue growth and operating profit increases.
So why do so many leaders cling to planning? Because planning feels safe, it creates the illusion of progress with slides, charts, and milestones that comfort shareholders. Strategy, by contrast, feels risky, requiring courage, clarity, and a willingness to think longer-term when short-term pressures dominate.
To avoid this confusion, leaders can make three shifts: be clear on their ambition, start by clarifying where to play and how to win, ensure they're having these conversations, treat strategy as dynamic choice-making, surface, challenge, and update assumptions, not goals. Successful companies prove that clarity, not rigidity, drives resilience.
The cost of getting it wrong is predictable: organizations will optimize yesterday's business model, reward activity over impact, and lose confidence and coherence. In contrast, BCG research shows that organizations with precise alignment of purpose, strategy, and culture can generate significantly higher shareholder returns.
Ultimately, leaders who thrive won't be those with the best laid plans, but those with the clearest direction โ and the courage to hold it. Planning is about control; strategy is about courage. So ask yourself: are we executing a plan, or living a strategy?