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Strategic intent

Definition

What is strategic intent?

Strategic intent pertains to the purpose of an organization, including its goals and objectives. It is the philosophical base of the strategic management process that shows what the organization desires to accomplish in the future. 

What is strategic intent?

Classification of strategic intent 

There are three concepts that define strategic intent. These can greatly impact where your business stands on the market.

Stretch

Stretch is the most fundamental definition of strategic intent. There is always a mismatch between resources and objectives, but balancing this relationship is the key to success.

Leverage 

Leverage refers to a situation in which resources are used to achieve unrealistic standards by accelerating the rate an organization develops. 

Fit 

Fit refers to a situation in which perfect resources have been made available so that a high level of aspiration may still be met with ease.

Attributes of strategic intent

Here are the three key components of strategic intent.

Sense of direction 

Sense of direction includes an understanding of the long-term goal or competitive position that a firm aims to build in the future. The company’s sense of direction should provide a perspective of the organization’s future. 

Sense of discovery 

Sense of discovery helps create a competitively positive outlook and allows employees to explore for themselves. The strategic intent of the firm should maintain curiosity and excitement for the future.

Sense of destiny

The emotional edge associated with strategic intent is the sense of destiny. This boosts strategic intent to a whole new level by including employee emotions into the organization’s goals. As a result, everyone benefits from an overall development.

Strategic intent hierarchy

Five elements make up a strategic intent, each providing a clear demonstration of the company’s philosophy and goals.

Vision

Vision represents the company’s future position. It shows the firm’s goal and gives a glimpse into what to become in the future. The organization’s vision statement can serve as a guide and motivation for employees and is also important in shaping the company culture.

Mission

The mission statement outlines the company’s goals and strategies for attaining them. The purpose of the mission statement is to help potential shareholders understand the business.

Business definition

The business definition has a great impact on the corporate organization. This defines the business activities with elements such as customer demands, target audience, and competing technologies.

Business model

A business model is a strategy for providing effective customer service, establishing sources of income, intended customer base, and financing aspects. Because of their strategic decision, companies in the same industry adopt different business models.

Goals and objectives

Goals and objectives are the foundation of the strategic intent hierarchy, which must be achieved through time with the support of an overall plan.

While goals are the long-term outcomes that the business aspires to, objectives support the achievement of time-based goals, measurable actions.

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