In business, the term “strategy” is used a great deal. But what does it actually mean? And how does it differ from a strategic narrative?
The difference between a strategy and a strategic narrative is that a strategy describes how you intend to achieve your goals; a strategic narrative explains why you want to achieve them.
So while both strategies and narratives are important tools for businesses, they serve different purposes: one is focused on achieving specific goals while the other tells the overarching tale of who we are as an organization.
Knowing when to use each of them is essential for organizational achievement. Therefore, this article will enlighten you on the difference between a strategy and a strategic narrative.
Strategy vs. Strategic Narrative: How To Tell the Difference?
It takes understanding what makes up a strategy and strategic narrative to understand the difference. Here is what we mean:
What Is a Strategy?
A strategy is an organization’s high-level plan for achieving its goals and objectives. The term “strategy” originates from the Greek word strategos, which means genera and explains why military forces first used strategy before it made its way into business and the corporate world.
Strategies are designed to accomplish three key tasks:
1) They define what the organization wants to achieve;
2) They establish how it will go about pursuing those goals; and
3) They set forth guidelines for making decisions about resource allocation (e.g., time, money, people).
Effective strategies must be responsive to changes in the external environment (e.g., new technologies, competitors’ moves). At the same time, they should also be aligned with the organizational culture and values.
Goals are critical for every organization to define its future, and a good strategy is what it takes.
Generally, most organizations employ the SWOT analysis when charting their company strategy.
SWOT is useful for ensuring that companies maintain their competitive advantage by playing to their strengths and de-emphasizing their weaknesses.
An effective strategy provides direction for the company, including allocation and utilization of resources. Therefore, a strategy is a plan that defines an organization’s mission, vision, and focus.”
What Are the Components of a Strategy Statement?
As part of setting up its strategy, every organization should have a strategy statement. The strategy statement defines the organization’s long-term direction and serves as a blueprint for its activities. Every effective strategy statement includes the organization’s intent, mission, goals, and objectives.
- Strategic Intent
The intent is the first element or component of a strategy and involves the essence of the company’s existence. It captures what the company must do to maintain relevance and increase its competitive advantage. It is what motivates members of the organization by igniting their faith in the company’s vision.
- Mission Statement
The mission statement highlights the role the company intends to play in serving its general interest and stakeholder interest. It is the secret behind every strategic narrative and influences its presentation and acceptance. Essentially, the mission statement of every organization captures the essence of its existence or why they are in business.
For example, a company’s mission statement can be to provide cheaper goods for the ordinary person, while another company’s mission statement could be to provide luxury for the crème of society. The mission statement also defines the scope of responsibilities for the program manager, who takes a more generalized approach to the organization’s strategic management.
Furthermore, every mission statement includes the organization’s core values that guide the organizational operations, including the work attitude of the members.
- Company Vision
It is also similar to the organization’s mission statement, except that it identifies the company’s future aspirations. Essentially, the vision explains where the company expects to be. It incorporates the organization’s ability to make a futuristic review of its operational activities toward realizing its goal.
The vision statement of an organization concentrates on motivating the company members, unlike the mission statement, which focuses on the customers. As a result, company executives can make better decisions by focusing on their vision.
Difference Between the Features of a Company’s Mission and Vision in Strategic Development
| Features of a Vision Statement | Features of a Mission Statement |
| It should be clear | It should be feasible and attainable |
| It should not be ambiguous | It should provide clarity for immediate action |
| It should align with the core values of the company | It should be inspiring to both team members and customers |
| Company dreams should be realistic and attainable | It should be precise |
| Vision statements should be shorter for easier retention | It should be unique and distinctive to make an impression on customers |
| It should inspire hope and confidence in customers toward the organizational goals |
- Goals and Objectives
The organizational goals and objectives are essential ingredients for creating the company’s operation strategy. In strategic management, corporate goals and objectives must be precise and measurable.
They can be either short-term or long-term, which the strategy defines. As a result, organizational goals and objectives are usually time-bound to make them more beneficial to the company’s advancement.
What Is a Strategic Narrative?
A strategic narrative is a detailed explanation of an organization’s goals in story form. That story defines the company’s vision by highlighting the current state of the organization and its future and helps people make a personal connection to the business.
It adds more meaning and humanity to the company’s strategy and is sometimes reflected in the company’s design.
The narrative should describe the organization’s goals, values, and how it plans to achieve its objectives, proving a cohesive picture of the organization’s purpose, identity, and values.
Company leaders can use this form of storytelling to communicate an organization’s strategy to employees, shareholders, and other stakeholders. It can also help guide decision-making processes within the organization.
Recently, customers demand more from businesses beyond exchanging money for goods and services. Essentially, organizations that can fulfil the human desire for connection by providing more personalized services thrive better.
As a result, most companies use strategic narratives to keep their customers coming back for more because they can relate to and identify with the goals and aspirations of the company. So, in general, strategic narratives explain why your organization exists, why it is in business and why anyone should care about it.
The advent of online marketing and shopping provides more options to customers, thus maximizing the relevance of a strategic narrative for customers to connect with and derive meaning.
Here is a table showing a comparative analysis between the features of a strategy and a strategic narrative:
| Features of a Strategy | Features of a Strategic Narrative |
| It is the direct plan or blueprint of the organization. | It is the indirect plan of the organization. |
| It engages customers by playing to its strengths | It utilizes storytelling to engage customers |
| It is organization centered | It is customer-centric or customer-centered |
| It directly reflects the SWOT analysis | It indirectly reflects the SWOT analysis |
| It can be used in military operations | It is not suitable for military operations |
| It increases organizational objectives through the organization | It increases organizational objectives through the customer. |
Frequently Asked Questions
What Does a Narrative Strategy Mean for Business Diversity?
A narrative strategy for business diversity involves a rationale for including variety in any business or organization to create transformation through value creation. It is a call to action, highlighting the importance of diversity in any organization.
What Is the Key to a Good Business Narrative?
The key to a good business strategy is providing meaning to your audience through the power of good storytelling. A good business story should offer your audience a moral of the story. It should also provide hope enough to elicit action from your audience to buy into what your company or brand offers.
What Is SWOT Analysis in Strategic Management?
SWOT is an acronym meaning: strength, weakness, opportunities, and threats. It is an analytical framework for organizations to play on their advantages to stay in business and increase their competitive advantage. The SWOT analysis analyses all intrinsic and extrinsic factors for any organization.
How Does Strategic CSR Differ from Regular CSR in Terms of Business Strategy?
Strategic CSR focuses on aligning social and environmental initiatives with a company’s overall business strategy, while regular CSR tends to be more ad hoc and disconnected from core business objectives. The main difference between csr strategies lies in the intentional integration of social responsibility into broader business planning and decision-making processes.
Final Thoughts
The success of any organization lies in its approach to internal and external management. Also, managerial practices are linked to the organization’s strategy of operation. So, choosing the right approach is vital for presenting a compelling organizational image. Hopefully, this article gives you a head start by differentiating a strategy from a strategic narrative for you!
