(c) Macmillan & Tampoe The Strategy Formulation Process Chapter 7 Strategic Intent

(c) Macmillan & Tampoe What is Strategic Intent?  Vision + Intent Where we want to get to How we intend to get there

(c) Macmillan & Tampoe The Pyramid of Purpose The language of Strategic Intent Decision Criteria Strategic Intent Vision Mission Priorities Objectives Aims Strategic InitiativesStrategies

(c) Macmillan & Tampoe Strategic Intent in Practice Acceptable to stakeholders Consistent with the history and culture of the enterprise Must stretch beyond its present aspirations and practices Will tend to be based on inspired guess of the future Includes both vision and goals

(c) Macmillan & Tampoe Inspired guesses of the future The Strategy Formulation Process Strategic Assessment Strategic Choice Stakeholder Groups Strategic Intent Survival Profit Growth Shareholder Value Unique for this enterprise Context History & Culture Ownership Structure Corporate Values Leadership Goals Vision Figure 7.2 Influences on Strategic Intent

(c) Macmillan & Tampoe Form & Impact of Strategic Intent Be expressed in few words Pithy and credible Publicised Should not be a surprise – rather should state what is already known Inspire employees, customers, suppliers and public Guide decision making

(c) Macmillan & Tampoe Strategic Intent - Role of Leadership Inspirational leaders illustrate role Highly visible Strategic intent closely related to leader Surrounded by people who agree Hence vision widely understood and accepted However, danger if vision become inappropriate

(c) Macmillan & Tampoe Stakeholders influence on Strategic Intent Any group with an interest in the activities and results of the enterprise i.e., Shareholders (dominant stakeholders in commercial enterprises), Customers, Managers, Staff Influence tends to vary with the levers of power they hold – shareholders tend to be the most powerful Future direction and current actions often strongly determined by the directors’ view of the response of powerful stakeholders

(c) Macmillan & Tampoe High Low High Extent of Power Inclination to exercise power Consult and Involve Inform Avoid annoying Least important Figure 7.3 Model for analysing stakeholder power

(c) Macmillan & Tampoe Impact of Context on Strategic Intent Organizational History and Culture Recent events Track record Current performance Merger residues Ownership and power structure Family firms Founder(s) in residence Personal goals and agendas

(c) Macmillan & Tampoe Contrasting Views on Strategic Intent Model described so far is only one view. 2 other views: Impossible for an organization to have intent e.g. Cyert & March, Simon Intent embedded in culture