(c) Macmillan & Tampoe 20011

The Strategy Formulation Process

Chapter 7

Strategic Intent

(c) Macmillan & Tampoe 20012

What is Strategic Intent?

Vision + Intent

Where we want to get to

How we intend to get there

(c) Macmillan & Tampoe 20013

The Pyramid of PurposeThe language of Strategic Intent

Decision Criteria

Strategic Intent

Vision Mission

Priorities Objectives Aims

Strategic Initiatives Strategies

(c) Macmillan & Tampoe 20014

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 20015

Inspired guessesof the future

The Strategy Formulation ProcessStrategic Assessment

Strategic Choice

Stakeholder Groups

Strategic Intent

SurvivalProfitGrowthShareholder Value

Unique for thisenterprise

ContextHistory & Culture

Ownership StructureCorporate Values

Leadership

Goals Vision

Figure 7.2 Influences on Strategic Intent

(c) Macmillan & Tampoe 20016

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 20017

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 20018

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, StaffInfluence 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 20019

High

Low

Low High

Extent ofPower

Inclination to exercise power

Consult and Involve

Inform

Avoid annoying

Least important

Figure 7.3 Model for analysing stakeholder power

(c) Macmillan & Tampoe 200110

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 200111

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