Strategic Intent

Strategy can be considered in two ways. According to the late C. K. Prahalad, the traditional view says that companies should match current resources with external opportunities. C. K. Prahalad’s view is that the companies should set their ambition first and then expand the resource-base to reach that ambition. Strategy, to C. K. Prahalad, is innovation. The starting point for developing innovation is to have a huge ambition. The essence of strategic intent or vision is that it works in an opportunity-backward manner, not a constraint-forward manner. In other words, the act of strategic intent disregards the scarcity of resources in the present. The style of thinking changes from a budgeting orientation to an innovation’ orientation. A compelling strategic intent like producing a $2000 car or putting the man on the moon provokes an innovative response because people are drawn to challenging goals. Anyone would like to climb a mountain, and not a molehill.

print

Leave a Reply

Your email address will not be published. Required fields are marked *