2010-Spring Advanced MIS WED IME KANG A IN

 Introduced by Gary Hamel and C.K. Prahalad  “Strategic Intent” published in Harvard Business Review (1989)

 Strategic Intent ◦ A long-term goal that is ambitious, builds upon and stretches firm’s core competencies, and draws from all levels of the organization.  Typically looks years ahead, establishes clear milestones  Firm should identify resources and capabilities needed to close gap between strategic intent and current position. ▲Identifying the Resource and Capability Gap

 Should not be a surprise – rather should state what is already known  Inspire employees, customers, suppliers and public  Guide decision making  Be expressed in few words  Pithy and credible  Publicised

 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 Influences on Strategic Intent 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 Goals Vision Inspired guesses of the future Leadership

Influences on Strategic Intent  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

 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 Influences on Strategic Intent Model for analysing stakeholder power Avoid annoyingConsult & Involve Least importantInform High Low Extent of Power LowHigh Inclination to exercise power

 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 Influences 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 Influences on Strategic Intent

1. How is the idea of “strategic intent” different from models of strategy that emphasize achieving a fit between the firm’s strategies and its current strengths, weaknesses, opportunities and threats (SWOT)? 2. Can a strategic intent be too ambitious? 3. What do you think about the Views of Cyert & March, Simon? (Impossible for an organization to have intent )