1. 2010-Spring Advanced MIS 2010.04.28.WED 20071121 IME KANG A IN 1 2010-04-28

2.  Introduced by Gary Hamel and C.K. Prahalad  “Strategic Intent” published in Harvard Business Review (1989) 2010-04-28 2

3.  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 10-20 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

4. 4 2010-04-28  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

5.  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 5 2010-04-28 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

6. 6 2010-04-28 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

7.  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 7 2010-04-28 Influences on Strategic Intent Model for analysing stakeholder power Avoid annoyingConsult & Involve Least importantInform High Low Extent of Power LowHigh Inclination to exercise power

8.  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 2010-04-28 8 Influences on Strategic Intent

9.  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 2010-04-28 9 Influences on Strategic Intent

10. 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 ) 2010-04-28 10