With the Saudi market’s growth and diversification, many SMEs struggle to expand and remain stable due to weak strategy or lack of clear vision. This stresses the need for strong strategic guidance—whether from in-house strategists or trusted external experts—especially in fields like consulting, marketing, and technology.
In this article, we help you understand the practical difference between strategy and a plan, and why maintaining a balance between the two is essential for your company, especially in the fast-changing and increasingly competitive Saudi market.
The Difference Between the Strategy and the Plan
Differentiating between a strategy and a plan is not a luxury—it’s the foundation for building a clear and sustainable growth path. Without a strategy, efforts are scattered, and without a plan, ideas remain on paper. That’s why growing companies must understand the difference between the two and know how to use each at the right time and place.
Strategy and Its Main Components
A strategy is the long-term overarching framework through which an organization defines its vision and long-term objectives, and selects the paths and resources needed to achieve them. A well-known strategy expert (Chandler) defined it as: “The determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.”
Strategy is built on a comprehensive analysis of both the internal and external environment of the organization (such as SWOT analysis for strengths, weaknesses, opportunities, and threats), followed by identifying major goals and key performance indicators (KPIs) to track them.
Main Components of the Strategy
A strategy usually includes the following core elements:
- Vision: What the organization aspires to achieve in the long term.
- Mission: The core purpose of the organization and the services it provides.
- Core Values: The guiding principles the organization commits to in all its activities.
- Long-Term Goals: Often SMART goals, meaning:
- Specific
- Measurable
- Achievable
- Realistic
- Time-bound
- Specific
- Market and Competitor Analysis: To understand the current situation and identify opportunities and threats.
- Strategic Initiatives: Key projects that have the most impact and support the vision.
- Resource Allocation: Financial and human resources to ensure the execution of the strategy.
Large strategic projects and initiatives emerge from these components to enhance competitiveness and growth within the Saudi market, aligned with the company’s direction and sector developments.
The Plan and Its Relationship to Strategy
A plan comes after formulating the strategy. It details the daily activities and tasks required to achieve strategic goals. It’s a detailed work plan that maps tasks and actions for each department or unit within the organization, with a timeline, responsibilities, and resources defined.
In simpler terms, the strategy answers what and why, while the plan answers how, when, and who will execute each task. As management experts state, “The implementation plan outlines the steps your team needs to take to achieve a goal or objective.”
Hence, a detailed plan must be based on a clear strategic vision. For example, the marketing department cannot build an effective plan without first understanding the overall strategic objectives, such as increasing market share by a certain percentage. This is strongly emphasized in strategy implementation frameworks.
Key Differences Between the Strategy and the Plan
| Criteria | The Strategy | The Plan |
| Definition | A general and comprehensive plan for long-term goals is developed by top management. | A detailed plan is created by departments to execute daily activities and short-term goals. |
| Timeframe | Long-term (typically 3–5 years or more). | Short-term (usually one year or less). |
| Scope of Planning | Covers the entire organization and sets the overall direction. | Focuses on a specific department or unit with smaller operational goals. |
| Responsible Party | Created and approved by top management or the board of directors. | Developed by department heads and executives. |
| Budget | Organization-wide budget across the whole company. | Specific to a department/project. |
| Level of Detail | High-level frameworks, no granular details. | Highly detailed (specific tasks, timelines, and resources). |
| Monitoring and Reports | Periodic indicators and formal reports (quarterly/yearly). | Daily/monthly tracking with simpler execution indicators. |
These differences clearly show that strategy is broader and defines the organization’s long-term direction, while the plan is more focused and time-bound. To clarify further: the strategy draws the roadmap, while the plan turns that roadmap into actionable steps.
Experts also emphasize that failing to implement a clear plan after drafting a solid strategy is a common reason why organizations don’t achieve their goals. Even with ambitious objectives, without daily actionable plans, success becomes unlikely.
Why Every Business Needs a Clear Strategy and Plan
While many SMEs focus on day-to-day operations, without a clear strategy and actionable plan, long-term success can be challenging. A strategy sets the vision for where the business is headed, while a plan provides the detailed steps on how to reach that vision.
Saudi Arabia has set a strong example of how strategy and planning can drive success. By implementing clear strategies and detailed plans, businesses in the country have been able to grow, overcome challenges, and stay competitive. This approach has not only helped SMEs thrive but also led to significant growth in the consulting sector, which reached $3.2 billion in 2023.
Practical Tips for Professionals and Entrepreneurs
- Start with a Comprehensive Analysis: Before drafting your strategy, perform a thorough SWOT analysis to define your strengths, weaknesses, opportunities, and threats. This helps clarify your vision and mission.
- Set Clear Strategic Goals: Define measurable long-term objectives (e.g., increasing market share or developing new services) and identify key performance indicators (KPIs) to track them.
- Engage Leadership and Teams: Ensure top executives and key employees are fully informed and aligned with the strategy before implementation. Everyone should understand why these goals matter before working on short-term tasks.
- Link Strategy to Daily Execution: For every strategic goal, create a detailed plan (department goals, tasks, timelines, resource allocation). Build a strategic map to show how each unit contributes to the company’s objectives. Experts recommend: “Draft a clear strategy before launching a plan.”
- Use Advanced Measurement Tools: Apply tools like the Balanced Scorecard to link strategic goals to operational actions and specific indicators. This enables fast tracking and course correction.
- Review and Adjust Regularly: Keep monitoring changes in the market, technology, and regulations, and adjust your strategy and plans accordingly. Harvard Business has warned against sticking to static plans amid rapid environmental changes.
- Communicate and Track Progress: Establish mechanisms to follow up on execution indicators (monthly or quarterly reports are suitable) and ensure effective communication between departments. Assign clear ownership for each goal.
- Stay Flexible and Backed by Leadership: Include flexibility in your timeline and resource allocation to respond to changes. Ensure senior leadership is committed to supporting the plan with the required budget and resources.
Conclusion
Strategy is at the beating heart that guides an organization’s direction, while the plan is the arm that turns those ideas into action. Therefore, building an effective strategy and converting it into a successful plan is critical to the success of any project or company.
With clear coordination between long-term vision and daily activities, organizations can achieve their goals efficiently and avoid delays or waste. Experts stress that even the best-detailed plan will fail without a strategic framework—it simply lacks direction and is prone to failure.
FAQs
The strategy comes first; it sets the vision and general goals of the company, and then the detailed plan is built on it. A detailed plan without a strategic framework lacks direction.
In theory, an organization can develop a short-term plan without formulating a formal strategy, but this approach is unsustainable. Without a clear strategic framework, the short-term plan becomes scattered and fails to serve a unified purpose, which increases the likelihood of failure. Studies clearly state that neglecting to establish a strategic vision before creating a plan is a common reason for failed implementation. Therefore, it is always preferable to define a clear strategy first and then build the plan based on it.
Policies define general guidelines on what should be done, procedures explain how it should be done, plans determine when and with what means it should be done, and strategies guide why it should be done.
