2010-Spring Advanced MIS
2010.04.28.WED
20071121 IME KANG A IN
2010-04-28
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Introduced by Gary Hamel and C.K. Prahalad
“Strategic Intent” published in Harvard
Business Review (1989)
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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
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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
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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
Context
Inspired guesses
of the future
Stakeholder
Groups
History & Culture
Ownership Structure
Corporate Values
Strategic Intent
Goals
Survival
Profit
Growth
Shareholder Value
Leadership
Vision
Unique for this
enterprise
The Strategy Formulation Process
Strategic Assessment
Strategic Choice
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Influences on Strategic Intent
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Inspirational leaders illustrate role
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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
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Influences on Strategic Intent
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Any group with an interest in the activities and results of the enterprise
i.e., Shareholders (dominant stakeholders in commercial enterprises), Customers, Managers, Staff
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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
Model for analysing stakeholder power
Extent of Power
High
Avoid annoying
Consult & Involve
Least important
Inform
Low
Low
High
Inclination to exercise power
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Influences on Strategic Intent
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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
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Influences on Strategic Intent
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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
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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)?
Can a strategic intent be too ambitious?
What do you think about the Views of Cyert & March, Simon?
(Impossible for an organization to have intent )
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