In today's turbulent economy, companies are facing an unprecedented level of uncertainty. However, many leaders still mistake planning for strategy, which can be costly. The key distinction lies in understanding what planning and strategy entail.
Planning is about creating comfort by generating deliverables and soothing anxiety, especially when volatility arises. It involves filling calendars, setting timelines, and producing outcomes. On the other hand, strategy is uncomfortable as it demands clarity, trade-offs, and courage. Strategy forces leaders to make intentional choices about where to play, how to win, and what to do – or not do.
The companies that are thriving in today's turbulence are those that have resisted the reflex to over-plan. They've made deliberate, sometimes unpopular, choices that gave them direction when others drifted. For instance, IKEA has stayed consistent for decades by staying anchored to its core choice: making good design affordable for the many, not the few.
Nintendo has consistently outperformed in a sector driven by rapid planning cycles and constant hardware upgrades by ignoring the arms race. Its strategy has always centered on fun, creativity, and accessibility – or in gaming terms, playability. 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. Its corporate strategy set a clear direction: expand leadership in diabetes and metabolic health care, and aligning R&D, manufacturing, and go-to-market partnerships to that goal.
The confusion persists because planning feels safe, while strategy requires courage, trade-offs, and living with ambiguity. Research shows that many senior executives spend very little time on strategic discussions, prioritizing nearer-term planning activities over longer-term strategic choice discussions and decisions.
Leaders can make three shifts straight away: be clear on your ambition, treat strategy as dynamic choice-making, and surface, challenge, and update assumptions, not goals. Successful companies prove that clarity, not rigidity, drives resilience. Firms with strong foresight systems can grow significantly faster than peers.
The cost of getting it wrong is predictable: optimizing yesterday's business model, rewarding activity over impact, and losing confidence and coherence. In contrast, organizations with precise alignment of purpose, strategy, and culture can generate higher shareholder returns – up to 9 percentage points higher than the market average.
In conclusion, leaders need to be strategic and courageous in uncertain markets. Planning is about control, while strategy is about courage. The leaders who thrive won't be those with the best laid plans, but those with the clearest direction – and the courage to hold it.
Planning is about creating comfort by generating deliverables and soothing anxiety, especially when volatility arises. It involves filling calendars, setting timelines, and producing outcomes. On the other hand, strategy is uncomfortable as it demands clarity, trade-offs, and courage. Strategy forces leaders to make intentional choices about where to play, how to win, and what to do – or not do.
The companies that are thriving in today's turbulence are those that have resisted the reflex to over-plan. They've made deliberate, sometimes unpopular, choices that gave them direction when others drifted. For instance, IKEA has stayed consistent for decades by staying anchored to its core choice: making good design affordable for the many, not the few.
Nintendo has consistently outperformed in a sector driven by rapid planning cycles and constant hardware upgrades by ignoring the arms race. Its strategy has always centered on fun, creativity, and accessibility – or in gaming terms, playability. 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. Its corporate strategy set a clear direction: expand leadership in diabetes and metabolic health care, and aligning R&D, manufacturing, and go-to-market partnerships to that goal.
The confusion persists because planning feels safe, while strategy requires courage, trade-offs, and living with ambiguity. Research shows that many senior executives spend very little time on strategic discussions, prioritizing nearer-term planning activities over longer-term strategic choice discussions and decisions.
Leaders can make three shifts straight away: be clear on your ambition, treat strategy as dynamic choice-making, and surface, challenge, and update assumptions, not goals. Successful companies prove that clarity, not rigidity, drives resilience. Firms with strong foresight systems can grow significantly faster than peers.
The cost of getting it wrong is predictable: optimizing yesterday's business model, rewarding activity over impact, and losing confidence and coherence. In contrast, organizations with precise alignment of purpose, strategy, and culture can generate higher shareholder returns – up to 9 percentage points higher than the market average.
In conclusion, leaders need to be strategic and courageous in uncertain markets. Planning is about control, while strategy is about courage. The leaders who thrive won't be those with the best laid plans, but those with the clearest direction – and the courage to hold it.
I'm thinking we're seeing this a lot now with big companies like IKEA, Nintendo, LEGO, and Novo Nordisk - they're actually succeeding because they're not too busy planning for the next quarter 
. It's all about having a clear direction and being willing to take some risks 
. If you just keep making the same old plans, you'll end up like those companies that got left behind by Tesla and Airbnb 
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Like, what's the point of having a 5-year plan if it's just gonna get replaced every year? 
. That's huge! And it makes sense - when everyone is on the same page, you can make decisions quickly and confidently 
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- you can create schedules and stuff, but at the end of the day, some things are just gonna happen regardless 
. The ones that succeed are the ones that take risks and make deliberate choices that might not be popular but will make them stand out from the crowd 
. And let's not forget all those companies that have thrived by sticking to their core values and mission statements, like IKEA and LEGO 
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, i mean think about it, they dont have to be fancy or high tech to be successful, theyre all about making good design affordable for everyone 
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. The key takeaway is that planning can be comforting, but strategy requires courage and clarity 
. If leaders can just get clear on their vision and be willing to take risks, they'll be way ahead of the game 
