Transcript Document
The Strategy Formulation Process Chapter 7 Strategic Intent 1 (c) Macmillan & Tampoe 2001 What is Strategic Intent? Vision + Intent Where we want to get to 2 How we intend to get there (c) Macmillan & Tampoe 2001 The Pyramid of Purpose The language of Strategic Intent Strategic Intent Vision Priorities Decision Criteria 3 Mission Aims Strategic Initiatives Objectives Strategies (c) Macmillan & Tampoe 2001 Strategic Intent in Practice 4 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 2001 Figure 7.2 Influences on Strategic Intent Stakeholder Groups Context History & Culture Ownership Structure Corporate Values Inspired guesses of the future Strategic Intent Goals Survival Profit Growth Shareholder Value Leadership 5 Vision Unique for this enterprise The Strategy Formulation Process Strategic Assessment Strategic Choice (c) Macmillan & Tampoe 2001 Form & Impact of Strategic Intent 6 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 2001 Strategic Intent - Role of Leadership Inspirational 7 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 2001 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 8 (c) Macmillan & Tampoe 2001 Figure 7.3 Model for analysing stakeholder power Extent of Power High Low Avoid annoying Least important Low Consult and Involve Inform High Inclination to exercise power 9 (c) Macmillan & Tampoe 2001 Impact of Context on Strategic Intent Organizational History and Culture Ownership and power structure 10 Recent events Track record Current performance Merger residues Family firms Founder(s) in residence Personal goals and agendas (c) Macmillan & Tampoe 2001 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 11 (c) Macmillan & Tampoe 2001