A lengthy period of strategic analysis, probably once a year, leads to decisions and detailed planning. 

Strategic planning tends to be exclusive. It is done by a small group, over a fixed period, once a year. 

Long decision making processes. You have to be sure you are doing the right thing, but spending too long deciding can mean it will be wrong or too late by the time you actually do it.

From many choices you implement a single choice and stick with it.  Other choices are tested in theory rather than practice. 

Strategy treated as fact that must be true.  And it will remain true for a long period.

Much quicker from strategic analysis to action. An initial hypothesis about the market is created. It is tried, tested quickly, and the feedback is assessed. 

Strategy can be more inclusive, gathering more information as it is implemented, continuously through the year. 

Shorter decision making periods. You can steer the ship more responsively.  You still look for facts and evidence to make decisions but try thing out, and throw them away or make them happen, in a much shorter timescale.

From many choices you can try the best options, discard those that don't work and push hard on those that are most successful.

The strategy is treated as a belief (hypothesis) that needs to be tested. If the feedback tells you that it is wrong, or things have changed, then it needs refining or changing. If you fail to, you create problems in the organisation.

Strategy is tested in the design process.  Once implementation started it is not tested formally again.

Changes in strategy are large corrections.  These occur after the strategic planning process is completed.

Strategic assumptions, beliefs and hypotheses are embedded in the strategic plans.  They tend not to be made explicit and are not regularly reviewed and evaluated.

Strategy is tested in both the design stage and the assumptions, policies beliefs are re-validated and tested as the strategy is executed. 

Changes in strategy can be either large corrections or more likely are incremental refinements.  large corrections occur when they are necessary, not at the end of the financial year.

Strategic assumptions, policies and hypotheses are made explicit.  They are regularly reviewed in the light of new information. If they change, then the implications for the strategy are reviewed and the strategy is refined and re-communicated.

Budgets are created once a year (ideally towards the end of of the planning process). 

Budget revision: They are not revised as the year progresses.

Budgeting is a detailed and complicated process. It requires a detailed view over long time horizons.

Budget assumptions may not be made explicit (or even mislaid in the budgeting process).  Therefore someone picking up a budget has to try and work out why the money is allocated as it is.

Budget to strategy: Some organisations even fail to connect their budgets to their strategy.

If external factors change, the budgets tend not to get revised.

People are criticized for failing to achieve their budgets at the end of the year.

Budget game playing can occur.  The budgeting process is politicised.

Budgets are detailed over the next 6 months, and become less detailed as the planning horizon extends out.   They are refined and revised revised as the year progresses and more information is gathered.

Budgeting is a detailed and complicated process.

Budget assumptions are made explicit (and embedded in the budgeting process).  Someone picking up a budget can see where changes occur and why.

The budgets are directly connected to the strategy and the resources needed to implement it.

As external factors changed, budgets are revised.

People's budgets get refined as the year progresses.  They get criticised for missing budgets that are in their control, not due to factors outside their control.

Budget game playing is replaced by discussion and understanding of the strategy and its implementation. The budgeting process is de-politicised.

Management meetings focus on operational issues. 

Information is reported and shared in the meetings.

Time in meetings is spent diagnosing what is wrong and assessing the quality of information.

Focus is analytical, control and silos. 

Little delegation: Staff reporting to the management team are focused on delivering operational information.  There is little delegation (as the managers are operationally focussed and controlling things).

Little delegation of responsibility.

Little strategic review: Questions such as, "Is our strategy still working" and "Are our assumptions still valid" tend to get ignored.

Internal focus: Management meetings are focused on internal information, associated with operations and implementations, to the exclusion  of external and environmental factors.

Management meetings concentrate on whether the strategy is working, ensuring resources support the changes you want, and whether people understand the what they are trying to achieve.

Information is reported and shared between the meetings. Time between meetings is spent ensuring the information is correct and diagnosing what might be going wrong. 

Time in meetings is is focused on getting agreement to what (we collectively) need do about it.

Focus, is cause and effect, diagnosis and learning and we, collectively, doing something about it.

Increased delegation and responsibility as the managers are concentrating on the bigger issues, or exceptions, whilst trusting their staff to manage the operational details.

Internal and external focus: External information is gathered to compare with the internal. Managers are sensing the external environment for information that suggests the strategy is working, or triggers that suggest the external environment is changing.

Set at the beginning of the year, individual performance contracts are fixed at the beginning of the year and evaluated at the end, whether the objectives have changed or not during the year.

Bonuses awarded on achievement of the objectives from 12 months ago.

Tend to focus on outcomes, not attitudes, skills and knowledge.

Set at the beginning of the year and refined as the year progresses.

Bonuses tend to share the overall earnings, based upon relative performance and achievement.

Increased emphasis on development: skills, knowledge and contribution to learning as well as outcomes.

Strategy and planning gets detailed in plans.  The plans have to be translated in a way that people can understand. 

This strategy gets communicated and executed, as a one off at the start of the year.

Large strategy documents and plans, hard to change and re-communicate.

Executives end up with 100 page strategies and plans.  Separate exercises are needed to translate teh strategy and plans into something that can be communicated.

As feedback is gathered plans remain as they are because they are too difficult and monolithic to change.

It is hard to communicate changes in the strategy as the year progresses.

Strategy still in plans, but also in more people's heads. 

Plans are thinner and lighter, focusing on what matters and assumptions, (rather than lengthy justification of single strategic choice).

Plans easier to communicate. Becuase they are designed to document teh startegy quicker, yet more thoroughly, they are easier to refine and re-communicate. 

The Chief Executives of some of our clients carry their strategy on only three pages. They can explain it, in detail, in 5-10 minutes.

As feedback is gathered, plans and budgets are revised, the refinements to the strategy are communicated and its execution monitored.

It is easy to communicate changes. As the refined strategy is communicated to people, they know   and understand what has changed, why and what to focus on now.

We are not saying that strategic analysis and planning is a waste of time. On the contrary, it is important: but, so is action.
It is a question of balance.  As Napoleon said, "I care nothing for plans:  But Planning is vital."

The question is, are you learning from it?

Is the classical approach to strategy working for you? Could it be better?

And, what can you do about it?  How can you become more responsive and learn more quickly?