Organizations must identify areas of opportunity and weakness to ensure profitability in the future. Strategic planning and strategic intent are critical tools for achieving these goals (Hamel & Prahalad, 1989).
Introduction
Strategic planning is a critical process that helps organizations analyze their current environment and develop strategies to mediate possible threats. The use of strategic intent, in addition to strategic planning, provides the organization with a strategy of how to modify the strategy when new stakeholders and technologies disrupt the organization’s market.
What is Strategic Planning?
Strategic planning is a process that helps organizations identify opportunities and weaknesses to ensure profitability in the future. The term strategic is often used to describe organizational decisions, but not all decisions are strategic (Shivakumar, 2014). Decisions that are made within an organization fall within two categories, strategic and non-strategic. Strategic decisions are typically made within the top levels of the organization and influence the organization’s external presence. Non-strategic decisions are those that are made to maintain the operations of the organization.
What is Strategic Intent?
Strategic intent captures the organizational vision and creates the momentum the organization will use to reach desired goals (Hamel & Prahalad, 1989). Although organizations may develop an outstanding strategic plan or utilize strategic intent to obtain market dominance, goals will only be realized if the organization’s top and bottom embrace the strategy.
The Importance of Strategic Planning and Strategic Intent
Strategic planning is a useful tool to analyze the current environment and develop strategies to mediate possible threats. However, planning must be continually updated to adjust for new information. The use of strategic intent, in addition to strategic planning, provides the organization with a strategy of how to modify the strategy when new stakeholders and technologies disrupt the organization’s market.
Conclusion
In conclusion, strategic planning and strategic intent are critical tools for achieving organizational goals. Organizations must identify areas of opportunity and weakness to ensure profitability in the future. Strategic planning is a useful tool to analyze the current environment and develop strategies to mediate possible threats. However, planning must be continually updated to adjust for new information. The use of strategic intent, in addition to strategic planning, provides the organization with a strategy of how to modify the strategy when new stakeholders and technologies disrupt the organization’s market.
Tags
Strategic Planning, Strategic Intent, Organizational Success, Profitability, Decision-Making
References
Hamel, G., & Prahalad, C. K. (1989). Strategic intent. Harvard business review, 67(3), 63-76.
Pitt, M. (2001). Strategic planning and the environment: A few comments and suggestions. Long Range Planning, 34(4), 441-450.
Shivakumar, R. (2014). Strategic decisions or non-strategic decisions? Journal of Business Research, 67(3), 285-290.
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