Meaning of Strategic Intent

1. Strategic intent refers to purposes for which the organization strives for.
2. Senior managers must define “what they want to do” and “why they want to do”.
3. “Why they want to do” represents strategic intent of the firm.
4. Strategic intent is generally stated in broad terms but when stated in precise terms it is an expression of aims to be achieved operationally, i.e., goals and objectives.
5. Clarity in strategic intent is extremely important for the future success and growth of the enterprise, irrespective of its nature and size.
6. Strategic Management is defined as a dynamic process of formulation, implementation, evaluation, and control of strategies to realize the organization’s strategic intent.
7. Strategic intent indicates the long-term market position, which the company wants to create or occupy.
8. Strategic intent is intention of company to grab opportunity for exploring new possibilities.
9. Strategic  intent  provides  the  framework  within  which  the  firm  would  adopt a pre-determined direction and would operate to achieve strategic objectives.
10. At the corporate level strategic intent refers to vision and mission statements for the organization.
11. The business level of the organization strategic intent will be business definition and business model.

 

Elements of Intent

Strategic intent has the following elements at corporate level:

1. Vision
2. Mission
3. Business definition
4. Business model
5. Goals and Objectives

 

Elements of Strategic Intent

 

Meaning of Vision

1. Vision is a road map of company- A strategic vision is a road map of a company’s future.
2. Intention of top management which kind of company they want to create- Strategic vision shows clear intention of top management about which kind of company management is trying to create. Vision helps company to set objectives.
3. Strategic vision is a blueprint of management aspiration of company-Strategic vision provides a panoramic view of the “where we are, and where we want to go. Vision provides ways to identify strength and weakness of company to grab opportunities to challenge threats.Strategic vision clarify the capabilities and company plans to develop capabilities.
4. Intended clarity to stake holder and providing common direction–A clearly articulated strategic vision communicates management’s aspirations to stakeholders and helps to energies personnel of the company in a common direction. Strategic vision points out a particular direction to company .It provides strategic path to be followed in future. Strategic vision moulds and changes identity of the organization.
5. Objective setting- Objective setting in respect of technologyrequirement. Strategic vision provides ways to focus on customer. Vision provides clear picture of the geographic to cover productand markets to be pursued. Vision helps in drafting organizational objectives.
6. New approach to make a company as a leader -Vision identifies the new approach to make company as a leader.

 

Some examples of Vision

1.  ICAI- VISION

ICAI Vision is to become World’s leading accounting body, a regulator and developer of trusted and independent professionals with world class competencies in accounting, assurance, taxation, and finance and business advisory services.

2. Vision of Reliance

Our vision is that, through sustainable measures, create value for the nation, enhance quality of life across the entire socio-economic spectrum and help spearhead India as a global leader in the domains where we operate.

3.  Vision of Tata power

Our vision is, to be the most admired and responsible Integrated Power Company with international footprint, delivering sustainable value to all stakeholders.

4.  Vision of Tata Motor

Our vision is to be a world class corporate constantly furthering the interest of all its stakeholders.

5. Vision of Hindustan Unilever

Unilever products touch the lives of over 2 billion people every day – whether that’s through feeling great because they’ve got shiny hairandabrilliantsmile,keepingtheirhomesfreshandclean,orbyenjoying a great cup of tea, satisfying meal or healthy snack.

Four pillars of Hindustan Unilever

The four pillars of our vision set out the long term direction for the company

1.            Where we want to go and how we are going to get there: We work to create a better future every day.

2.            We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.

3.            We will inspire people to take small actions everyday that can add up to a big difference for the world.

4.            We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.

We’ve always believed in the power of our brands to improve the quality of people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognize that global challenges Such as climate change concern all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.

 

Primary Elements of Vision

There are three primary elements in strategic vision:

1. Mission statement

Coming up with a mission statement that defines what business the company is presently in and   conveys the essence of “Who we are and where we are now?

2. Long term course

Using the mission statement as basis for deciding on a long-term course making choices about “Where we are going?”

3. Communicating

Communicating the strategic vision in clear, exciting terms that would increase organization’s wide commitment.

 

Shared Vision and Vision Shared

Individuals in organizations relate themselves with the vision of their organizations in different manner. When the individuals are able to bring organizational vision close to their hearts and minds they have ‘shared vision’. Shared vision is a force that creates a sense of commonality that permeates the organization and gives coherence to diverse activities. However, ‘vision shared’ shows imposition of vision from the top management. It may demand compliance rather than commitment. For the success of an organization, having shared vision is better than vision shared.

 

Essentials of a Strategic Vision

There are four essential of strategic vision:

1. Direction in which organization is headed,
2. Intelligent entrepreneurship,
3. Enthusiasm among the members,
4. Thinking creatively.

 

1. Direction in which organization is headed – The best-worded vision statement clearly illuminates the direction in which organization is headed.
2. Intelligent entrepreneurship– Forming a strategic vision is an exercise in intelligent entrepreneurship.
3. Enthusiasm among the members-A well-articulated strategic vision creates enthusiasm among the members of the organization.
4. Thinking creatively–The entrepreneurial challenge in developing a strategic vision is to think creatively about how to prepare a company for the future.

 

Purposes of Strategic Vision

Following are purpose of strategic vision

1. Resources utilization
2. Outperforming competitor
3. Competitive environment creation
4. Change required, if any
5. Clarity in direction that company wants to go through
6. Accountability