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Hierarchy of Strategic Intent

@ Ashok K. Sar SFM-2010 2

Vision

Mission

Goals

Objectives

Plans Greatestin number

Fewest innumber

Mostspecific

MostIntegrative

Miller - 1998

Values

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Vision

Vision statement answers the question:

What do we want to become?

Components of a vision

Core ideology Core values companys essential tenets

Core purpose companys reason for being

Envisioned future

10-30 year BHAG aid long term vision

Vivid description

A Clear Vision statement provides foundation forcomprehensive mission statement

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Mission

Why the organization exists, or the purpose

What differentiates the organization from others,or the identity; and

The basic beliefs, values, and philosophy of theorganization

Business definition

Key elements: Obligations the firm holds to its

stakeholders; The scope of the business; Sourcesof competitive advantage; The organizationsview of the future.

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Values

commonly held beliefs, mindsets, and

assumptions that shape how work is done in

an organization

@ Ashok K. Sar SFM-2010 5

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Values: TCIL

To excel in providing communication solutions

globally by anticipating opportunities in

technology. The company also specifies the

TCIL Waywhich the company employees

pride as the reason why TCIL is such a high

performer, in spite of being a Public Sector

Undertaking (PSU)

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Goals

Financial & non-financial

Stretched goals

@ Ashok K. Sar SFM-2010 7

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Objectives

Provide the measurable parameters for

monitoring/evaluating the performance of the

organization

Time dimension

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Plans

Indicate the specific actions that will be taken

by the organization in order to achieve the

objectives.

Specify the roles members of the organization

will perform, the resource allocation across

different organizational sub-units and

departments, and prioritize and schedule thevarious activities.

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Hierarchy of Strategic IntentStatement of Firms Strategic Intent

@ Ashok K. Sar SFM-2010 10

Economic

Logic

Arenas

Staging

Differentiators

Vehicles

Hambrick and Fredrickson (2001)

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Arenas

Where will be active? (and with how much

emphasis)

Which product category?

Which market segment?

Which geographic segment?

Which core technology?

Which value-creation stages?

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Differentiators

How will we win?

Image?

Customization?

Price?

Styling?

Product reliability?

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Vehicles

How will we get there?

Internal development?

Joint ventures? Licensing?

Acquisitions?

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Staging

What will be our speed and sequence of

moves?

Speed of expansion

Sequence of initiatives

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Economic logic

How will we obtain our results?

Low cost through scale, scope & replication

advantage

Premium price due to unmatchable service,

proprietary product features

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SFM-2010 16@ Ashok K. Sar

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@ Ashok K. Sar SFM-2010 17

Next Class

SpryLab

Segmenting, value propositionsFig. 1-9

Scope, CompetenciesTable 1-8 Define MissionTable 9

Set strategic agendaTable 10

Goals & Objectives Table 13 & 14