In the world of business, the terms “strategy” and “plan” are often used interchangeably, leading to confusion about their distinct roles and importance. However, grasping the difference between these two concepts is crucial for achieving success in any endeavor. Inspired by Simon Sinek’s book, “Start with Why,” let’s explore the distinction between strategy and plan and how some notable leaders have effectively implemented them.
Three builders are working on constructing a cathedral. When asked what they are doing, the first builder says, “I’m laying bricks.” The second builder says, “I’m building a wall.” But the third builder says, “I’m building a cathedral.”
All three are doing the same physical task, laying bricks. However, their perspectives are different:
First Builder: He sees his work as simply a task to be completed. He’s laying bricks. This is similar to a plan, where you’re looking at the individual tasks that need to be done.
Second Builder: He sees the bigger picture of his task. He’s not just laying bricks; he’s building a wall. This could be likened to a strategy, where you understand that the tasks you’re doing fit into a larger objective.
Third Builder: He sees the ultimate purpose or vision behind his work. He’s contributing to the building of a cathedral. This is the ultimate goal or vision that the strategy aims to achieve.
So, the story illustrates how the same task can be viewed differently depending on whether you’re thinking task-level (plan) or big-picture (strategy), and how important it is to align tasks and strategies with an overarching vision or purpose.
The Essence of Strategy: Starting with Why
At its core, a strategy is the guiding light that illuminates the path to success. It provides a sense of purpose, direction, and motivation by answering the fundamental question: “Why are we doing this?” Simon Sinek’s groundbreaking work in “Start with Why” emphasizes that great leaders and organizations start by articulating their ‘why’ before delving into ‘how’ and ‘what.’
- What and Why: Strategy is more about what you’re going to do and why you’re going to do it. It’s the overarching approach you’re taking to reach your objectives.
- Long-Term: Normally, a strategy is more long-term and may span years.
- Flexibility: Strategy is also more flexible. If something isn’t working, you might tweak the strategy without changing the end goal.
- High Level: Think of it as the bird's-eye view of what you want to achieve.
- Apple Inc. — Steve Jobs: Apple’s success story is a testament to the power of starting with why. Under the visionary leadership of Steve Jobs, the company’s strategy was clear: to challenge the status quo and empower individuals through innovative technology. Their ‘why’ was about thinking differently and making a dent in the universe. This ‘why’ fueled their strategy, which focused on creating user-friendly, beautifully designed products.
- Southwest Airlines — Herb Kelleher: Herb Kelleher, co-founder of Southwest Airlines, built a strategy around a clear ‘why.’ His vision was to democratize air travel and make it accessible to everyone. Southwest’s strategy involved offering low-cost flights, providing excellent customer service, and fostering a unique corporate culture. This strategy made them a standout player in the aviation industry.
- Tesla — Elon Musk: Elon Musk’s ambitious vision is to speed up the world’s transition to sustainable energy. This ‘why’ has driven Tesla’s strategy to develop innovative electric vehicles and renewable energy solutions. Constant innovation characterizes tesla’s strategy and a long-term commitment to sustainability.
The Role of Planning: Turning Strategy into Action
While strategy sets the overarching direction, a plan is the practical roadmap for executing that strategy. It answers the ‘how’ and ‘when’ questions and provides a detailed blueprint for achieving strategic goals.
- How and When: A plan is about how you’re going to execute that strategy and when you’re going to do it. It’s more detailed.
- Short-Term: Plans usually cover shorter time periods, like weeks or months.
- Specifics: A plan is usually more specific, with steps, tasks, timelines, and resources all laid out.
- Ground Level: If strategy is the bird's-eye view, the plan is the street-level view of how to get there.
- Apple’s Product Launches: Apple’s strategy to create groundbreaking technology is supported by meticulous product launch plans. These plans include designing, manufacturing, marketing, and releasing products at the right time to generate buzz and anticipation among consumers.
- Southwest Airlines’ Rapid Turnaround: Southwest’s strategy of offering low fares and excellent customer service relies on a detailed plan for efficient and quick turnaround times at airports. Their operations teams follow specific processes to minimize aircraft downtime.
- Tesla’s Gigafactories: Tesla’s strategy to revolutionize the automotive industry with electric vehicles involves building massive Giga factories worldwide. These are meticulously planned to ensure the production of vehicles, batteries, and energy solutions at scale.
In conclusion, the ‘why’ is the heartbeat of any strategy, and it’s what sets leaders and organizations apart. By starting with a clear ‘why,’ like Steve Jobs, Herb Kelleher, and Elon Musk did, you create a strong foundation for your strategy. Then, it’s essential to develop detailed plans that translate your strategy into actionable steps, as demonstrated by Apple, Southwest Airlines, and Tesla.
Remember, a successful strategy is a harmonious blend of a compelling ‘why’ and a well-executed ‘how.’ So, whether you’re guiding a business or embarking on a personal project, always start with why and plan with purpose.
Creating a Winning Strategy: Start with Why — A Framework
In the world of strategy, understanding ‘why’ you do what you do is paramount. This strategy document framework, inspired by the principles of ‘Start with Why,’ provides a clear, concise, and effective way to communicate your strategy. Let’s break it down into its key sections with real-world examples.
1. The Strategy Argument: Crafting the Narrative
In this section, you’ll craft a narrative that lays the foundation for your strategy. Imagine you’re making your case to a jury, and your goal is to carry them with you on an emotional journey. Here’s how you can structure it:
- The Status Quo: Describe the current state of affairs in your market or situation.
- Why This Sucks: Explain the shortcomings, problems, or challenges that need to be addressed.
- Our Belief: Present your unique insight or perspective that sets you apart from others.
- Our Solution: Outline the actions you’ll take based on your insight to solve the problem and deliver value.
Example: Apple’s iPhone Launch
- The Status Quo: In 2007, the mobile phone market was dominated by clunky, non-user-friendly devices.
- Why This Sucks: Consumers were frustrated with complicated interfaces and limited functionality.
- Our Belief: Apple believed in creating a user-friendly, revolutionary smartphone.
- Our Solution: They launched the iPhone, combining a sleek design with an intuitive touchscreen interface, revolutionizing the smartphone industry.
2. The Strategy Statement: One Clear Sentence
Following the strategy argument, distill your strategy into one clear, unambiguous sentence that summarizes your approach.
Example: Amazon’s Strategy
“Our strategy is to leverage e-commerce and logistics to become the world’s most customer-centric company.”
3. The Implications: Turning Words into Action
This is where you outline the specific actions that will bring your strategy to life. These actions should reflect changes across various aspects of your business, such as product development, branding, distribution, and sales.
Example: Google’s Expansion Strategy
- Product: Develop innovative products like Google Maps and Android to capture more users.
- Brand: Create a user-friendly and trustworthy brand image.
- Distribution: Expand partnerships with smartphone manufacturers to pre-install Google apps.
- Sales: Increase advertising revenue through targeted advertising based on user data.
4. The Execution Flow: Putting It All Together
Lastly, sketch out the order in which actions should be taken, ensuring each step naturally flows into the next. This creates a roadmap for executing your strategy.
Example: Netflix’s Global Expansion
- Content Acquisition: Secure rights to a diverse range of content.
- Market Research: Analyze potential markets and audience preferences.
- Localized Content: Tailor content to suit local tastes and languages.
- Marketing: Launch strategic marketing campaigns.
- Infrastructure: Invest in server and network infrastructure to support global streaming.
By following this strategy document framework, inspired by ‘Start with Why,’ you can create a powerful and actionable strategy that not only communicates your vision but also guides your organization toward success. Remember, the ‘why’ behind your strategy is the North Star that keeps you on course even in the most turbulent seas of business.