Strategic Intent Meaning

Strategic intent refers to the pre-defined future state that the organisation is
planning to reach within a stipulated period of time. The term strategic intent
was popularised by Gary Hamel and C.K Prahalad. They defined strategic
intent as the reason of existence of an organisation and the ends it wants to
achieve. It shows the beliefs and values of an organisation.
To achieve a certain future state and to achieve certain ends the organisation
should take certain courses of action. These ends can be either long-term or
short-term. While the long-term ends have broad focus, the short-term ends
are narrow in nature. For an organisation to become effective, it is very
important for every staff member to have an understanding of the strategic
intent. Hence, the strategic intent should be achievable as well as
understandable.

Definitions of Strategic Intent

According to Prahalad and Doz :

"Intent is used here to describe long-term goals and aims, rather than
detached plans. Strategic intent is crucial for a firm to aim for goals for which
one cannot plan. It is important to separate that orientation (strategic intent)
from strategic planning or strategies. Strategic intent allows for a firm to build
layers of competitive advantage painstakingly, to accomplish long-term goals".

According to Burgelman and Grove :

"Strategic dissonance (misalignment between a firm's strategic intent and
strategic action), strategic inflection point (the change of one
winning strategy into another), and strategic recognition (the capacity of top
managers to appreciate the strategic importance of managerial initiatives after
they have come about but before unequivocal environmental feedback is
available) are the three interrelated key concepts that answer the question of
how top management can decide on strategic intent in high technology
industries".
Attributes of Strategic Intent

Strategic intent defines the nature of the path which an organisation needs to
follow in order to secure the long-term strategic position that is to be achieved
(accomplished) by the organisation.

According to Hamel and Prahalad, if the organisation clearly communicates its

strategic intent, then each activity would have precise and consistent purpose.
Strategic intent has the following attributes :

1) Sense of Direction :

The sense of direction defines where the organisation wants to go in the future
and why. Every organisation requires a significant, steady, and common end.
These ends should be valuable and necessary for the organisation.
The environment and market for business changes very frequently and hence
the strategic decisions should not be based on these short-term motives, else
the efforts made by the organisations become inconsistent and fail to achieve
the desired future state. Therefore, the organisations should pursue a long-
term mutual end, which is consistent and shared in nature. A proper set
direction helps organisation to achieve its long-term strategic intent.

2) Sense of Discovery :

The sense of discovery refers to the ability of inspiring the employees for
innovation and creativity. This is necessary because the employees feel less
enthusiastic when the strategic intent is not inspiring. The strategic intent
should motivate the employees to perform the challenging tasks and explore
new concepts. It should introduce new dimensions in the organisation and
innovate superior ways to achieve them.

3) Sense of Destiny :

The sense of density refers to the ability of the strategic intent to provide
meaning to the existence of the organisation. It should be able to create a
sense of respect among the organisational members. Strategic intent should be
meaningful and significant so that it can direct the organisation and motivate
its employees. Thus, strategic intent must be meaningful for the employees
and have the capability to set proper direction for them.

Hierarchy of Strategic Intent

Strategic Intent Vision, Mission, Goals and Objectives are elements included
in the hierarchy of strategic intent :

The Strategic Intent Elements (Strategic intent vision, mission and

objectives) serve to unify the ideas and resources towards a certain direction.
These elements are not only beginning points but also the milestones at
various levels. These elements act as a foundation for planning and directing
activities. Strategic intent also provides a way and assures that all the efforts
lead to organisation-wide progress. Strategic intent should be shared
effectively with all stakeholders to strengthen their belief in company's
offerings and its ability to lead the particular industry segment. Hierarchy of
strategic intent with example are as follows :
A) Vision :

Hierarchy of strategic intent vision is a mental perception of the kind of

environment and individual or an organisation aspires create within a board
time horizone and the underlying conditions for the actualisation of this
perception.

Vision statement can be referred as the statement defining company's long

term goals. A vision statement can exceed from one line to a few paragraphs
highlighting what the organisation want to achieve in future.

An effective vision statement motivate the employees and provide them a

sense of direction for carrying out day to day business activities and also help
in taking strategic decisions.
A vision statement is prepared to boost the moral of the employees by
painting a picture of the path on which the organisation is heading. The vision
statement of an organisation allow the managers to practically monitor the
organisations progress by comparing the stated objectives and operational
plans for achieving those objectives.

Strategic Intent Examples :

Infosys vision is "To be a globally respected corporation that provide best of
breed business solutions, leveraging, technology, delivered by best-in-class
people".

FEATURES OF A GOOD VISION :

1. Should be realistic and idealistic.
2. Clarifies direction for the organization.
3. Inspires organization members and encourages commitment.
4. Reflects the uniqueness of the organization, its distinctive competence.
5. Appropriate for the organization, consistent with its values and culture.
 6. Well articulated and easily understood.
B) Mission :

A mission provides the basis of our awareness of a sense of purpose, the

competitive environment degree to which the firms mission hit its capabilities
and the opportunity which the government offers.

A mission statement refers to the corporate reason for the existence of an

organisation. Mission statement does not outline the outcome. It has no time
frame or measurement associated with it. It highlights the current position and
future scenario of an organisation in terms of product, market, pricing,
customer service etc. Mission has a little touch of philosophy in it, as it talks
about the aspects for which an individual is destined to be in this world. It
provide the ground on resource allocation as per the objective.

 Mission defined as the fundamental, unique purpose that sets a business apart
from other firms of its type and identifies the scope of its operations in product
and market terms.
 It is a statement of attitude, outlook and orientation.
 It communicates what the firm wants to be.
 It indicates the businesses the firm will pursue and the customer needs it will
seek to satisfy.
 Shaped by the vision of the corporation's leaders.
For example :
Infosys mission statement is "To achieve our objectives in an environment of
fairness, honesty and courtesy towards our clients, employees, vendors and
society at large".
NEED FOR A MISSION
1. To ensure unanimity of purpose within the organisation.
2. To provide a basis for motivation.
3. To establish an organisation climate.
4. To serve as a focal point.
5. To facilitate the translation of objectives and goals into work structure.
6. It implies the image which the firm seeks to project.
C) Business Definition :

Business definition refers to the description of products, services, activities,

functions, and markets in which an organisation deals. It is a component of
mission statement which forms the foundation for all the strategic
planning processes and shows the organisation a way to achieve success. It
also helps the organisation in estimating the changes as well as their effects.
Business definition outlines the current position and the desired future
positions. It discusses the operations of the business but does not exactly
specify the reasons behind particular operation.
1. What are the products, services, or markets in which the organisation
operates?
2. Who are the target customers?
3. Which activities and functions are performed to satisfy the customers?
4. What are the resources and capabilities utilised to satisfy the
customers?
This concept applies to both the product and service organisations. Business
definition is usually marketing oriented. It focuses on customers as they are
the strength of the organisation. As an external stakeholder the customers
have the power to make or break the organisation. Business definition outlines
the scope of an organisation.

For example :
Some organisations like Reliance Industries Limited, Tata Group, and Birla
Group have wide scope, but some other organisations like Infosys, Wipro, etc.,
have limited scope.

D) Goals :

Organisational goals refer to the ideal situations to be achieved in undefined

time-duration in future. These goals direct the daily activities and decisions.
However, goals do not essentially lead to the quantifiable outcomes. These
statements are related to the vision and mission statements. Goals can be
followed for day-to-day operational activities and decisions, not essentially tied
up with quantifiable results.
Organisational goals provide the standards to measure the performances for
achieving the wide-ranging objectives. These are the targets that convert the
vision and mission into reality. Goals help in portraying a positive image of the
organisation in the industry. It plays an important role in maintaining public
relations and encourages support from various groups.
Goals is to establish a venereal tone or organisational climate to serve as a
focal point for those who can identify with the organisation purpose and
direction and to defer those who cannot, from participating in the
organisation's activities; to facilitate the translation of the broad purposes and
mission into identifiable tasks and their assignment to responsible groups
within the organisation and to help in allocating organisational resources.

According to Robey :
"An organisation falling short of its tartest might set up a task force to develop
new policies for achieving a higher level of goal attainment. Goals can also
provide a rationale for designing the organisation. A goal of rapid growth
through introduction of new products may lead and organisation to create a
strong R & D department and to create a mechanism for close integration
among the engineering, marketing and R & D departments”.

Features of Goals :

The goals of an organisation are characterised as follows :

1) Specific :
The goals should clearly specify targets to be achieved and the tasks to be
fulfilled. This would help the managers in evaluating the performance at
regular intervals. An ideal goal should address major issues that are critical for
success of the organisation.

2) Realistic and Challenging :

An organisational goal should be realistic as well as challenging. If the goal is
unrealistic, the employees may find it unachievable and may get demotivated.
But, the goal should also not be too easy. It should be challenging enough so
that it can encourage the employees to improve their performances by
searching new and creative ways of carrying-out the organisational activities.

3) Time Constraint :
Another important characteristic of an organisational goal is that there should
be a time-period associated within which it has to be completed. It provides a
deadline to the employees and managers so that they are motivated to
improve performance for achieving success within the time constraint.

4) Measurable :
The goals should be quantifiable. It implies that the goals should be
measurable so that the outcome could be evaluated and the progress can be
estimated. Measurable goals act as a yardstick for the managers and their
team members to evaluate their performance.

5) Level-Oriented Goals :
A goal should be set to address important issues only. The top and middle level
managers are accountable for such long-term goals. On the other hand, the
short-term goals should be addressed by lower-level managers.

6) Commitment :
The members of the organisation should be committed for the achievement of
set goals.

Types ofGoals:

1) Official Goals :
Official goals are the common objectives of the organisation. These goals
validate the activities of the organisation and stabilise the organisation in
its environment. These goals are mentioned in the documents published in the
organisation periodically, such memorandum of association,
annual performance report, etc. The top level management addresses these
goals in their public statement.
2) Operative Goals :
Operative goals indicate the actual targets that an organisation wishes to
achieve. These can be considered as the operating policies. These goals help
the managers in reducing the possibilities of uncertainty while remaining
attentive. The operating goals help in selecting the alternative designs for
organisation.

3) Operational Goals :
These goals are set by the middle level managers for supervising or controlling
the subordinates. These goals help in measuring the performance of the
employees.

E) Objectives :

Objectives are states or outcomes of behavior that are desired. An

organisation may desire either to obtain something that it does not currently
have or to retain something it already has. Hence, objectives may be either
acquisitive or retentive.
Strategic objectives are those aims that are formulated to bring major changes
in response to the changes, competition, and issues in the environment. These
objectives are formulated to address various internal and external issues such
as target customers, target markets, product, and changes in technology, etc.
Precisely, these objectives are the ultimate aim that an organisation needs to
attain to remain competitive in the market and for its long-term survival.
Strategic objectives determine the direction of the organisation in long-term
and helps in allocating organisational resources.
Strategic objectives are the specified targets to be achieved in a stipulated
period of time. These objectives help the managers in evaluating performances
of the employees in term of quality and quantity. Strategic objectives answer
the questions like what to achieve, how much to achieve, when to achieve,
how to achieve and who must achieve it.
The objectives identify the activities of the organisation. While
formulating strategies, objectives help in decision-making by assisting the
managers in various perspectives. The objectives also provide measures for
evaluating the final performance of employees.
According to Robert L. Trewatha and M. Gene Newport :
"Objectives may be defined as the targets people seek to achieve over various
time periods".

According to H. Igor Ansoff :

"Objectives are decision rules which enable management to guide and
measure the firms performance towards its purpose".

Objective Setting

Objective setting is when an organization plans goals and how to meet them
on a realistic timescale. Objectives help define what each department's and
employee's responsibilities are within the organization. Setting objectives is
part of establishing expectations for employees and managing them, which is
also called the performance management process.

Types of objectives

Here are several types of objectives:

Role objectives

Every role has an objective, which is usually part of the role's job description.
For example, a sever's role and role objective are to serve customers in order
to ensure customer satisfaction. Role objectives state what you need to do and
why it's important. Performance standards, such as speed and accuracy, help
evaluate role objectives.

Target objectives

Target objectives are measurable results from an employee. This could

measure output, income, service, cost reduction or other targets. For example,
you could measure a target objective for a jeweler by measuring their sales
amount per day.

Task objectives

Task objectives are objectives completed by finishing tasks or major projects

before a specified date. For example, a project's deadline can be an entire
department's task objective.

Behavioral goals

Managers often set behavioral goals for an entire department, but you can
also set them for an individual. Some behavioral expectations involve the use
of language, dress, actions and speech representative of the company and
team.

Performance goals

Performance goals are objectives of improved performance and help define

what can help achieve better results. Sometimes, performance goals result in
performance improvement plans that specify what actions both employees
and management need to take.

Learning goals

Learning goals help specify areas where employees and managers can develop,
whether that be through workplace skills or knowledge. Management could
arrange this through specialized training sessions or courses.

How to set objectives

In order to set objectives for your department, consider the following steps:
1. Simplify your goals

While your achievements may be complex, try to simplify your goals. Consider
keeping your goal-planning within a specified time margin. When explaining
goals to the team, organize your goal in such a way that each team member
clearly understands their part in the goal.

2. Ensure your goals are specific

When setting objectives, consider alternatives for reaching your desired

results. Once you've realized the best way you can reach these results,
illustrate a detailed plan on how to achieve the objective. Concise objectives
can help a team understand how they can complete their goals.

3. Explain your objectives to the right members

When explaining your objectives to employees, consider explaining only to

those who need to understand the objective. Each employee involved in your
plan can understand their part of the plan rather than the plan as a whole.
Those higher in management may benefit from higher-level objective plans,
while other employees may need to only understand what policies they may
change and how that change can benefit the entire company.

4. Ensure your goal is measurable

Employees easily understand goals that are measurable. Consider making sure
your goal is a measurable number instead of a general objective. Employees
can perceive "We can make $1000 more." a little better than "We can increase
profit." Measuring your goals also helps you understand when you have
reached them.

5. Divide your goal into smaller goals

When working with large goals, it may help your team to divide these goals
into smaller goals. Goals with many steps help your employees understand the
goal and celebrate their progress toward it. A department may feel more
satisfied by completing many small goals over a few weeks rather than a large
goal after many months.

6. Recognize every step of the process

A department may appreciate and celebrate finished deadlines. Not only can
this raise employee morale, but it may also strengthen your department's
communication efforts in the future.

7. Motivate your employees toward realistic goals

When creating your objectives, try making them realistic and attainable within
your company's context. Some management leaders prefer to employ stretch
goals when they set objectives. Stretch goals are goals that exist beyond the
initial goal. For example, if your goal was to make $500, your stretch goal could
be to make $555. Stretch goals can help motivate a team that works well to
complete a goal. Some managers provide monetary or vacation-based rewards
to the employee with the most progress towards a goal.

Organizational Values
Organizational values impact every aspect of a company – how it does
business, how it makes decisions, how it treats its employees and customers.
Let’s have a look at what organizational values are, what their purpose is, some
examples, and finally, how to define and live by your organizational values.

organizational values are the guiding principles that provide an organization

with purpose and direction. They help companies manage their interactions
with both customers and employees.
As video conferencing company Whereby puts it: “Our values ensure that every
decision, from all-hands meetings and events to quarterly feedback and
reviews, are made with our shared values in mind.”

Organizational values help a company:

Differentiate itself from its competitors

Your company values distinguish you from other companies in the eyes of your
customers, business partners, employees, and candidates. As such, they are an
important part of your company culture, oftentimes also described as the
personality of your organization.

Guide its employees in their decision-making

Values can provide a clear guide to your employees as to how to act in various
situations in your company.

If we look at the Whereby values, their ‘Trust trust’ is a good example of this.
People should be trusted from day one and they don’t need to earn that
trust. As they put it themselves, ‘people start with a full tank of trust, this
means trusting their expertise and skills, their judgment, and their intentions.’

Organizational values examples

We’ve already given a few examples of organizational values coming from

Whereby and Nike. But there are so many others. And while values are unique
to every organization, there are a couple of themes they often revolve around,
such as:

 integrity
 innovation

 collaboration

 teamwork

 passion.

Here’s a small sample of organizational values from well-know companies.

Netflix

Netflix is known to truly live and breathe its organizational values (you can take
a look at their culture if you like). As such, the company reinforces its values in
hiring, 360 reviews, comp reviews, etc.

Here’s an example of what that looks like when it comes to, for instance, high
performance. At Netflix, they want stars in every position. To ensure this,
managers use the so-called Keepers Test.

In short, this means that they ask themselves which of their people they would
fight for hard to keep if they told them they would leave – a practice that is in
line with both the company’s ‘courage’ and ‘honesty’ values.

The same thing goes for employees, they are encouraged to (be brave and) ask
their manager from time to time how hard they would fight to keep them at
Netflix.

Buffer

Another great example comes from social media management tool company
Buffer.
Buffer has 10 core values, including one that is called ‘Default to
Transparency’. In order to try and live up to this particular value, they have
made several things completely transparent:

 Salaries

 All their code is open source

 Their product roadmap

 All their diversity and inclusion data is open sourced