Strategic Intent
(Hamel Prahalad)

Reconciling the purpose of a company with its means. Explanation of Strategic Intent of Hamel and Prahalad. ('89)

In 1989, Gary Hamel and C.K. Prahalad created an upheaval with their article entitled "Strategic Intent". It was published in the Harvard Business Review. Hamel and Prahalad argue that in order to achieve success, a company must reconcile its purpose (end) with its means through Strategic Intent.

What is Strategic Intent? Description

In their book, Hamel and Prahalad define Strategic Intent as: an ambitious and compelling dream that energizes; which provides the emotional and intellectual energy for the journey to the future. If strategic architecture (a high-level blueprint for the deployment of new functionalities, the acquisition of new competencies or the migration of existing competencies, and the reconfiguring of the interface with customers) is the brain, strategic intent is the heart. It should express a feeling of stretch (challenge) - that current resources and capabilities are not sufficient for the task.

Strategic Intent Attributes

Hamel and Prahalad provided the following three attributes of strategic intent: direction, discovery, and destiny.

Sense of Direction. A particular point of view about the long-term market or competitive position that a firm hopes to build over the coming decade or so. It should be a view of the future and it should express a sense of direction which unifies and personalizes.
Sense of Discovery. A strategic intent differentiates; it implies a competitively unique point of view about the future. It holds out to employees the promise of exploring new competitive territory.
Sense of Destiny. Strategic intent has an emotional side; it is a goal that employees perceive as inherently valuable.

Typical three steps Strategic Intent Process

Set the Strategic Intent, having all three characteristics stated above.
Set the Challenges. Find appropriate challenges and communicate them to the entire workforce. These challenges are the means to achieve the Strategic Intent. For example: Suppose the Strategic Intent of Canon is: "Beat Xerox". A strategic challenge could be: Develop a home copier at a target price of $1000.
Empowerment of the Strategic Intent. Key in any Strategic Intent process is: to realize that achieving (getting into) the Strategic Intent is a matter that involves everybody. The task of Top Management here is to "capture the wisdom of the ants hill": change the traditional downward communication style to an upward communication stream of new ideas coming from the entire organization.

The background of this approach for corporate strategy, and strategic thinking in general, was the dramatic post-war ascent of Japanese companies. The Japanese economy increasingly dominated the world markets, by having initial ambitions that in the West would have been considered highly unrealistic. Unrealistic regarding their resources and capabilities. An obsession for winning was created and sustained at all levels of the organization. Thus the basis was created for a 10- to 20-year quest for global market leadership.

Book: Hamel & Prahalad - Competing for the future -

Strategic Intent Forum (11)

Start Every Activity with an Intent
"We tend to forget that an intent paves the way to reach any objective.
If we don't formulate an intent, that means we don't have any objective. Of course, things can be done without an intent, but you will achieve more or less random things.
So, start every activity with intent! If you want to get useful and good results, you have to start with a good and clear intent. Then, follow up by scanning yourself and your environment (do SWOT analysis) so that you can formulate a good strategy to achieve your objective.
Don't forget to accommodate internal as well as external factors in your strategy. Don't focus too much on one factor."

Setting the Challenge of Strategic Intent
"Should the challenge (always) be declared publicly?"

4 Dimensions of Strategic Intent
"Strategic Intent has four key dimensions and it is important to discern their inter-relatedness and distinctness at the same time. The Four Dimensions of Strategic Intent are:
1. The Desired Future State
2. The Strategic Position
3. Shared Values
4. Specific Steps to be Taken."

Measuring the Attributes of Strategic Intent
"How to measure these three attributes: sense of direction, sense of discovery and sense of destiny?"

Strategic Intent - 2 Quotes
"I like 2 sentences about S.I. From Competing for the Future:
Page 148: ".. Strategic intent aims to create employee excitement, not just employee satisfaction", and
Page 142 &ff: "direction, discovery and destiny. These are the attributes of strategic intent"."

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