Dr. Helen Eckmann Brandman University Heckmann@Brandman.edu

Definitions: 1. Strategy: The science and art of employing

the political, economic, psychological, and/or military forces of a nation or group to create advantage. (Webster’s Dictionary).

2. Strategy: “A pattern in a stream of decisions” (Henry Mintzberg) 3. Scenario planning: “A process of

developing and changing theories while they are in use.”

“A long term goal that captures employees’ imaginations and clarifies criteria for success.”

Hamel, G. & Prahalad, C.K. (2011) Harvard Business Press: Boston, MA

A way of thinking that creates short term goals connected to a larger picture. The big picture has to be crystal clear to every stakeholder, and every stakeholder has to have a view of what they will individually “win” by participating.

Strategic intent implies a sizable stretch for an organization. Current capabilities and resources will not suffice. This forces the organization to be more inventive, to make the most of limited resources. Whereas the traditional view of strategy focuses on the degree of fit between existing resources and current opportunities, strategic intent creates an extreme misfit between resources and ambitions.

Hamel, G. & Prahalad, C.K. p. 20

Two main concepts: 1. Turn strategic intent into reality

2. Stay Ahead of Your Competition

1. Create a sense of urgency Make stakeholders aware of the worst case

scenario. Standing on a “burning bridge.” 2. Personalize changes Let stakeholders see what the competition is

doing better (Ford inspired its factory workers with videos of Mazda’s most efficient plant).

3. Tackle one challenge at a time. Avoid organizational overload and conflicting priorities.

1. Build layers of advantages. Lower cost, better scores, higher recognition

(one at a time – all at one time – but in a strategic pattern).

2. Stake out undefended territory (finding loose bricks) Honda identified inexpensive motorcycles as an

undefended market share. They used that small entry point to get into the market to dominate the car market.

3. Change the terms of engagement. Canon built cheaper copiers and sold them to

secretaries, Xerox didn’t see them coming. 4. Compete through Collaboration Raytheon, Boeing and Lockheed will compete

for the same contract. As soon as one is awarded the contract, they sub contract with the others.

To achieve a strategic intent a company must usually take on larger, better-financed competitors. This means carefully managing competitive engagements so that scarce resources are conserved. Managers cannot do that simply by playing the same game better or making marginal improvements to competitors’ technology and business practices.

Hamel, G. & Prahalad, C.K. p. 34, 35

See the value of strategy and also of having a clearly defined strategic intent.

This information is presented as an introduction to

the text: Strategic Intent

By Gary Hamel and CK. Prahalad, From Harvard University Press (2011)