Many boards and directors mistakenly believe that being strategic and creating strategy are the same thing. However, understanding the distinction between these two concepts is essential for long-term success.

While both are important, they serve different purposes and influence how an organization navigates challenges, seizes opportunities, and remains competitive.

What Is the Difference?

Strategy isn’t just about responding to challenges as they come; it’s about proactively shaping the future with foresight and intention. Instead of waiting for external forces to dictate actions, strategic directors and boards stay ahead by being aware of trends, identifying opportunities, and positioning their organizations for new and different possibilities.

For example, a board that only reacts to industry disruptions may find itself constantly playing catch-up, adjusting plans after the fact. In contrast, a strategically proactive board monitors emerging risks and innovations, ensuring that decisions made today align with the organization’s future objectives. This forward-thinking approach allows organizations to adapt quickly, seize opportunities, and mitigate risks before they become crises.

At its core, creating strategy is the structured process of developing a formal plan that outlines an organization’s vision, goals, and key initiatives. It involves strategic planning sessions, setting objectives, and defining the steps necessary to achieve success. This process typically results in a written strategy document that serves as a roadmap for decision-making.

Being strategic, on the other hand, is more than just having a plan; it’s a mindset and an ongoing approach to thinking and acting with awareness, strategic foresight and future-focused perspective. Rather than relying on rigid, static plans, it requires embracing dynamic, continuous strategic conversations that keep the organization adaptable and forward-thinking.

This means regularly questioning assumptions, engaging in open-minded exploration of new possibilities, and ensuring that strategy remains a living, evolving process rather than a one-time exercise. It involves continuously evaluating the external environment, anticipating potential risks and opportunities, and making informed choices that align with the organization’s vision; whether or not a formal strategy document is in place.

Shifting to a strategic mindset enables directors to stay proactive, agile, and better prepared for the future, rather than simply reacting to change as it happens.

Why the Difference Matters

The real power lies not just in creating strategy, but in being strategic.

Why? Because being strategic is an ongoing process. It keeps organizations proactive rather than reactive;  adapting as circumstances evolve rather than following a rigid plan that may quickly become outdated.

Organizations that embrace strategic thinking don’t just wait for change to happen; they anticipate it, adapt quickly, and move forward with confidence. A rigid plan can become outdated fast, but a strategic mindset keeps you ahead of the curve.

On the other hand, creating strategy can be limiting; if it’s not flexible. A well-crafted strategy document is only as valuable as its ability to evolve. If it’s left untouched, it quickly loses relevance. The best strategies are living, breathing guides that are constantly revisited, refined, and adjusted to meet new challenges and opportunities.

For example, an organization that creates a three-year strategic plan but fails to adapt when market conditions shift may struggle to stay relevant. In contrast, a company that fosters strategic thinking at every level can pivot quickly when needed.

Being strategic is the key to innovation. Organizations that embed strategic thinking into their culture don’t just respond to change; they drive it. Instead of seeing obstacles, they spot opportunities. Instead of following trends, they create them. By thinking ahead and staying adaptable, they develop different options that not only overcome challenges but also set new standards and push industries forward.

Ultimately, executing a strategy depends on having a strategic mindset. Even the best-laid plans won’t succeed if directors and teams don’t actively think and act strategically every day. It’s not just about having a roadmap; it’s about knowing how to adapt when the path changes, navigate unexpected detours, and stay focused on the bigger picture.

In Closing 

Having a clear strategy is important, but it’s not enough on its own. True success comes from making strategic thinking a core part of your organization’s culture. When strategy goes beyond being just a document and becomes a way of being, thinking, operating, and leading, your organization doesn’t just adapt to change; it thrives because of it.

By embracing being strategic as an ongoing practice, directors can build organizations that are agile, resilient, and always prepared for what’s next. The future belongs to those who don’t just plan for success; but think strategically every step of the way.