Description
what is strategy, what is strategic intent and what are the characteristic of strategic intent. Ppt also explains how to make strategic choice.
Strategic Intent
What is Strategy?
Direction Markets and Scope Advantage Resources Environment Stakeholders
• Where is the business trying to get to in the longterm? • Which markets should a business compete in and what kind of activities are involved in such markets?
• How can the business perform better than the competition?
• What resources are required in order to be able to compete?
• What external, environmental factors affect the businesses' ability to compete?
• What are the values and expectations of those who have power in and around the business?
Strategic Intent
Ambitious and Compelling Dream
Emotional and Intellectual Energy
Journey to the Future
Strategic Mindsets
STRATEGIC FIT MODEL STRATEGIC INTENT MODEL
Strategic thinking is driven by the match between current capabilities and existing opportunities
Strategic thinking is driven by bridging gap between today’s reality and tomorrow’s vision
Finding ways to leverage resources
Searching for sustainable advantages
Finding protected niches
Outpacing competitors in building new advantages
Making new industry rules
Competitor Analysis
• “A company’s strategic orthodoxies are more dangerous than its well financed rivals”
Imitate
ShortSightedness
Characteristics of Strategic Intent
Essence of Winning
Within “arm’s reach “ of every consumer in the world
Stable over Time
Increased quality, reduced costs, cultivated export markets and then developed a new product
Characteristics of Strategic Intent
Personal effort and Commitment
Enormous Creativity
Planners ask “How will next year be different ? ”
Winners ask “What must we do differently ?”
Corporate Challenges
Sense of Urgency
Competitive focus at every level • Ford & GM
Skill Development Give time between challenges Clear milestones and review mechanisms Reciprocal Responsibility • Share Pain – Share Gain
• Image…
Approaches to Competitive Innovation
• Building layers of advantage
– Wider the portfolio of advantages, lesser the risk – Aim for differentiation + cost reduction
Approaches to Competitive Innovation
• Searching for loose breaks
– Required to break into a market or challenge a competitor
• Attack outside existing market • Remain unnoticed
Approaches to Competitive Innovation
• Changing the terms of engagement
– Barriers to Entry v/s Barriers to Imitation • Standardized machine components reduced cost • Distribution through office product dealers • Create a national service network
Approaches to Competitive Innovation
• Competing through collaboration
– Win without fighting – “Enemy’s enemy is your friend”
• Calibrate competitor’s strength • Assessed the progress US rivals had made in cost reduction, quality and technology
Wrong approach to strategic intent
• Heuristics and typologies limit the options • Strategy seen as a positioning exercise • Goal to find a niche in existing industry space • Concepts like “mature” and “declining” are misunderstood • Tools of strategic analysis are focussed internally
Evaluation Parameter
• Evaluation on “numbers” basis • Unable to develop deep business knowledge due to “career development”
The No. 1 Race
• Integration problem during Acquisition • Overloaded with initiatives • Incompatible collaborative ventures
STRATEGY HIERARCHY
GOALS
GUIDE
Employees fail to understand
Strategies
GUIDE
Tactics
Code of Silence
• Competitive challenges hidden from employees • Informed mainly to extract concessions • Revitalization and Participation needed
Creativity Issues
• Not enough heads • Incremental improvement strategies • Not venturing into different territories • Entry into personal copier from overseas sales subsidiary
Conservative Goals
• Lack of pressure and enthusiasm • No useful guidance for innovation • Blame on Investors but they are justifiably skeptical
Four Questions that Guide Strategic Choices
WHAT CAN WE DO? (strengths and weaknesses)
WHAT MIGHT WE DO? (external opportunities and threats)
STRATEGY
WHAT DO WE WANT TO DO? (organizational and individual values)
WHAT DO OTHERS EXPECT US TO DO? (stakeholder expectancies)
Four Related Questions that Guide Strategic Choices
WHAT CAN WE DO? What new (strengths and capabilities do we weaknesses) want to develop? WHAT MIGHT WE DO?we How do (externalnew create opportunities and threat) ? possibilities
STRATEGY
What do we WHAT DO WE need to WANT TO DO? learn to care (organizational and about? individual values)
How do we partner WHAT DO OTHERS to build shared EXPECT ? expectanciesUS TO DO? (stakeholder expectancies)
Who can ask the Million Dollar Question…….
doc_147949009.pptx
what is strategy, what is strategic intent and what are the characteristic of strategic intent. Ppt also explains how to make strategic choice.
Strategic Intent
What is Strategy?
Direction Markets and Scope Advantage Resources Environment Stakeholders
• Where is the business trying to get to in the longterm? • Which markets should a business compete in and what kind of activities are involved in such markets?
• How can the business perform better than the competition?
• What resources are required in order to be able to compete?
• What external, environmental factors affect the businesses' ability to compete?
• What are the values and expectations of those who have power in and around the business?
Strategic Intent
Ambitious and Compelling Dream
Emotional and Intellectual Energy
Journey to the Future
Strategic Mindsets
STRATEGIC FIT MODEL STRATEGIC INTENT MODEL
Strategic thinking is driven by the match between current capabilities and existing opportunities
Strategic thinking is driven by bridging gap between today’s reality and tomorrow’s vision
Finding ways to leverage resources
Searching for sustainable advantages
Finding protected niches
Outpacing competitors in building new advantages
Making new industry rules
Competitor Analysis
• “A company’s strategic orthodoxies are more dangerous than its well financed rivals”
Imitate
ShortSightedness
Characteristics of Strategic Intent
Essence of Winning
Within “arm’s reach “ of every consumer in the world
Stable over Time
Increased quality, reduced costs, cultivated export markets and then developed a new product
Characteristics of Strategic Intent
Personal effort and Commitment
Enormous Creativity
Planners ask “How will next year be different ? ”
Winners ask “What must we do differently ?”
Corporate Challenges
Sense of Urgency
Competitive focus at every level • Ford & GM
Skill Development Give time between challenges Clear milestones and review mechanisms Reciprocal Responsibility • Share Pain – Share Gain
• Image…
Approaches to Competitive Innovation
• Building layers of advantage
– Wider the portfolio of advantages, lesser the risk – Aim for differentiation + cost reduction
Approaches to Competitive Innovation
• Searching for loose breaks
– Required to break into a market or challenge a competitor
• Attack outside existing market • Remain unnoticed
Approaches to Competitive Innovation
• Changing the terms of engagement
– Barriers to Entry v/s Barriers to Imitation • Standardized machine components reduced cost • Distribution through office product dealers • Create a national service network
Approaches to Competitive Innovation
• Competing through collaboration
– Win without fighting – “Enemy’s enemy is your friend”
• Calibrate competitor’s strength • Assessed the progress US rivals had made in cost reduction, quality and technology
Wrong approach to strategic intent
• Heuristics and typologies limit the options • Strategy seen as a positioning exercise • Goal to find a niche in existing industry space • Concepts like “mature” and “declining” are misunderstood • Tools of strategic analysis are focussed internally
Evaluation Parameter
• Evaluation on “numbers” basis • Unable to develop deep business knowledge due to “career development”
The No. 1 Race
• Integration problem during Acquisition • Overloaded with initiatives • Incompatible collaborative ventures
STRATEGY HIERARCHY
GOALS
GUIDE
Employees fail to understand
Strategies
GUIDE
Tactics
Code of Silence
• Competitive challenges hidden from employees • Informed mainly to extract concessions • Revitalization and Participation needed
Creativity Issues
• Not enough heads • Incremental improvement strategies • Not venturing into different territories • Entry into personal copier from overseas sales subsidiary
Conservative Goals
• Lack of pressure and enthusiasm • No useful guidance for innovation • Blame on Investors but they are justifiably skeptical
Four Questions that Guide Strategic Choices
WHAT CAN WE DO? (strengths and weaknesses)
WHAT MIGHT WE DO? (external opportunities and threats)
STRATEGY
WHAT DO WE WANT TO DO? (organizational and individual values)
WHAT DO OTHERS EXPECT US TO DO? (stakeholder expectancies)
Four Related Questions that Guide Strategic Choices
WHAT CAN WE DO? What new (strengths and capabilities do we weaknesses) want to develop? WHAT MIGHT WE DO?we How do (externalnew create opportunities and threat) ? possibilities
STRATEGY
What do we WHAT DO WE need to WANT TO DO? learn to care (organizational and about? individual values)
How do we partner WHAT DO OTHERS to build shared EXPECT ? expectanciesUS TO DO? (stakeholder expectancies)
Who can ask the Million Dollar Question…….
doc_147949009.pptx