LEARNING OBJECTIVES

• To Explain the basic concept like strategic intent, vision,

mission and business definition.
• To Describe the relevance of these concepts from the
organization point of view.
• To Explain how these concepts’ clarity makes the
organization a successful entity.

Business Policy and Strategic Management (Strategic Intent)

INTRODUCTION
The vision of a company’s long term goals and objectives is
referred to as the strategic intent. It is the cornerstone of
strategic architecture. Strategic intent involves a significant
stretch for the organization as the existing skills, capabilities
and resources are not considered sufficient for the task.
1. Concept of strategic intent, Concept of Vision, Defining
Vision, Benefits of having Vision, Core Competencies of
Business and their relationship with strategy.
2. CONCEPT OF STRATEGIC INTENT, STRETCH, LEVERAGE AND
FIT :
These strategic concepts are used to formulate, to lead, and to
realize the ambitious enterprise performance. The concepts
may be used to improve productivity. The intention is to have
greater performance than that have at present. This can be
achieved with the present knowledge and available resources
at the disposal of the company. The credit of development of
the concept Strategic Intent goes to Hamel and Prahalad.
Hamel and Prahalad (1994) conceptualize strategy formulation
in terms of core competencies and in terms of resource stretch
and leverage.
Strategic Intent :
Strategic intent as defined by Hamel and Prahalad is used to
define and to communicate a sense of direction. The direction
is about the longer-term strategic position that the leaders of
the organization wishes to achieve through its processes of
objective setting and strategy formulation. Strategic intent
comprises a sense of direction, a sense of discovering that will
help in identifying opportunities to meet new challenges and a
sense of destiny – that will create inspiration and commitment
on the part of managers, employees, and the stakeholders. If a
particular objective of a company becomes extremely focused
and directed towards a specific target, then it is said that
company is showing a strategic intent. In short strategic intent
refers to the purposes for which the organization strives for.
These could be in the form of Vision and Mission statements.
Strategy as Stretch According to Hamel and Prahalad the
strategic intent goes beyond the conventional model. It is not
just restricted to matching internal competence and resources
with company objectives. Strategic intent indicates ‘stretch’ it
means stretching of the present resources and capabilities to
achieve the desired goals.
The concept of strategic intent involves the use of resource
stretch. It means that the enterprise will not be able to achieve
strategic intent with the present management and use of
resources and with the current operating capabilities of the
enterprise. The resources and capability may be inadequate to
meet the requirements of strategic intent. Hence for strategic
intent both will need “stretching”. Stretching is essential in
order to meet the needs specified by strategic intent. The
stretch is essential as there is gap between the knowledge,
resources and competence currently available to the
enterprise. The degree of stretch that is required by the
organization is defined by the strategic intent and the
challenges the enterprise may face in achieving strategic
intent. The gap between what enterprise wishes to achieve and
what is the present performance and resource capabilities
needs to be analysed.
Stretch : The gap between resources and aspirations is stretch.
Stretch is misfit between the resources and aspirations. In
order to meet the demands of the intent there is need to
stretch present resources and capabilities which may be at the
present position are likely to be inadequate to meet the
requirements of strategic intent. They need stretching. Hamel
and Prahalad comment that ‘we believe that it is essential for
top management to set an aspiration that creates, by design, a
chasm between ambition and resources ... managers must
create a misfit between resources and ambitions. Medium term
challenges should demand more of the organization than what
it currently believes is possible’ . Strategic intent is the strategy
of challenging competitor and overtaking the market leader.
Eg. Cummins Vs Caterpillar; Jio Vs Vodaphone; Titan Vs HMT.
Strategic intent is clear about the end results which a firm
wishes to attain but it is flexible as regards to means and there
is scope for creativity and improvisation. Dhirubhai Ambani of
the Reliance Group is credited with having strategic intent of
being global leader by being the lowest cost producer of
polyester products.
Leverage : Hamel and Prahalad also added the concept of
leverage. Leverage refers to concentrating, accumulating,
complementing, conserving and recovering resources in such a
way that the meager resource base is stretched in such a way
that the organization will be able to meet its aspirations.
Fit: The concept of stretch is diametrically opposite of idea of
‘fit’. In fit, company try to match its resources with its current
environment. Firms use SWOT techniques to assess
organizational capabilities with environmental opportunities. It
helps to understand what the company can achieve with its
resources within the given environmental factors.

CONCEPT OF VISION
When the firm expresses its aspirations as strategic intent
should give tangible results. Those results will be the realization
of firm’s vision. Vision indicates the ultimate purpose of being
here. For instance some companies may want to become world
leader in next 10 years. Therefore vision articulates the position
which a firm would like to attain in the long run. It is the dream
of the organization .Sometimes vision and mission are used
synonymously. But there is different between the two.
Mission is concerned with the present and the vision is more
concerned with the future. The mission statement answers the
questions what is our business? The vision statement gives the
answers to this question. The answer may be “what do we want
to be?” Vision statements charter the strategic path. It is
powerful motivator to action. Often it is the action from which
the vision is derived. Eg. Walt Disney wanted to make people
happy. Vision statement must be communicated to the
members of the organization. They are the one who are going
to help in bringing our dream to reality. Communication of
vision to everyone is essential in order to achieve
organization’s long term direction. The stakeholder will create
confidence in their mind about the clarity of the purpose of the
firm and knows where the company wants to progress. Vision
conveys the basic purpose. It creates a vivid image in the mind
of the employees, shareholders and others. It instils positivity
among the members. When the vision is clearly stated it
indicates its direction in which the organization is heading. It
creates enthusiasm among the employees. According to Peter
Senge, “ A vision provides shared pictures of the future that
foster genuine commitment and enrollment rather than
compliance” .
Accodring to Miller and Dess, Vision simply as the “Category of
intentions that are broad, all inclusive and forward thinking”.
The Advantages / Benefits of Vision
1. Good vision are inspiring and exhilarating .
2. It clarifies the path where organization wants to proceeds.
3. It helps the organization to prepare for future.
4. It clearly indicates top management views about the firm’s
long range direction.
5. It directs in decision making process.
6. It provides base for lower level managers to set
departmental mission and objectives.
7. It creates common identity and a shared sense of purpose.
8. Good vision foster risk taking.
 For availing these advantages the vision should act as an
organizational charter of core values and principles. There
should be determination of what makes us unique. A
vision statement should not be only a ‘high concept’
statement or an advertising slogan. For Example:
International Business Machines Corporation (IBM) has a
vision statement and mission statement strongly
associated with the organization and its brand. A firm’s
corporate vision statement sets the desired future state of
the business to guide strategic direction. IBM’s corporate
vision is “to be the world’s most successful and important
information technology company. Successful in helping
out customers apply technology to solve their problems.
Successful in introducing this extraordinary technology to
new customers. Important, because we will continue to be
the basic resource of much of what is invested in this
industry.” This vision statement depicts IBM’s
developmental path as it maintains its position as one of
the top players in the global market. IBM’s vision
statement marks the importance of leadership of the
business in the information technology industry.

DEFINING MISSION

Clarifying the mission statement and defining the business is the

starting point of business planning. Organization defines the basic
reason for their existence in terms of a mission statement. Mission
statement defines the role of the organization in the society. It
describes the organization reasons for being. For some companies
the mission statement may be in the form of very long statement or
may be a just paragraph. Mission statement includes a statement on
organizational philosophy and purpose. It indicates the fundamental
purpose of the organization. The mission statement also includes
the firm’s philosophy about how it does business and treats its
employees. Some experts are of the opinion that mission statement
describes what the organization is now and a vision statement
highlights on what the organization like to be in the near future.
According to Thompson (1997) mission is the “Essential purpose of
the organization, concentrating particularly why it is in existence,
the nature of the businesses it is in and customers it seeks to serve
and satisfy” In small organization the owner / founder establishes
the mission of the enterprise. In some companies CEO frames the
mission statement. However in the large organization a group of top
managers is involved in the process of framing mission statement.

Characteristics of Mission Statement:

Mission statement indicates the strategic thinking of the

organization on its stakeholders namely shareholders,
employees, customers, suppliers and the environment. It
should answer the following questions:
1. What are the values, beliefs of the organization?
2. What is major competitive advantage of the company?
3. Who are the company’s customers?
4. Are employees a valuable asset for the organization?

Mission statement framed should have following

characteristics: 
1. It should clearly indicate the organizational purpose and
outlook.
2. It should have customer orientation.
3. It should also highlights on social objectives.

1. Clarity : The mission statement should be clearly stated

so that it leads to effective action. The dream must be
presented in a positive way.

2. Realistic: It should be realistic and achievable.

3. Broad: The mission statement should be presented as

the grand design of the firm’s future.

4. Specific: Mission should be specific. It describes the

scope within which the organization has to function.

5. Dynamic: The mission statement should be dynamic to

balance between narrow and broad ways of doing things.
It should bring balance between present requirements and
future expectations.
6. Vision: The mission statement is the expansion of the
vision of the company. Example of Mission Statement:
IBM’s Mission Statement IBM’s mission is “to lead in the
creation, development and manufacture of the industry’s
most advanced information technologies, including
computer systems, software, networking systems, storage
devices and microelectronics. And our worldwide network
of IBM solutions and services professionals translates
these advanced technologies into business value for our
customers. We translate these advanced technologies into
value for our customers through our professional
solutions, services and consulting businesses worldwide.”
The mission statement indicates what the business of IBM
is. It detailed out company’s aims and its activities on how
to fulfill these aims.
It also highlights on :
• To be the leader in the IT sector with most advanced
technologies.
• Delivering better value to the customers.
• Providing professional solutions to the clients worldwide.
In nutshell the corporate mission statement highlights
IBM’s leadership in the information technology industry.
IBM’s corporate mission statement is very specific in
providing bases for business processes. Mission statement
is closely linked to the company’s corporate vision
statement.

CORE COMPETENCIES Of BUSINESS

Core competencies apply to all Agency staff members,

irrespective of their grade and function, and include
communication, teamwork, planning and organizing and
achieving results. Their definitions, setting out the
Agency’s expectations, and the respective behavioural
indicators, outlining specific traits that every staff member
is expected to demonstrate during her/his employment
with the Agency. The expected competency level is linked
to a given occupational role and is based on the area of
expertise and the seniority of the role. Every core
competency requires compliance with the regulations,
rules and policies of the Agency.

What is a Business Competency Framework?

A Business Core Competency Framework is a model that

broadly describes performance excellence within an
organization. Such a framework usually includes a number
of competencies that are applied to multiple occupational
roles within the organization. Each competency defines, in
generic terms, excellence in working behaviour.
This definition then establishes the benchmark against
which staff are assessed. A competency framework is a
means by which organizations communicate which
behaviours are required, valued, recognized and rewarded
with respect to specific occupational roles. It ensures that
staff, in general, have a common understanding of the
organization’s values and expected excellent performance
behaviours. Competency frameworks are used throughout
the United Nations system, as well as in many
Government and Private Sector Organizations.

What are the components of the framework?

The Agency’s competency framework includes core

values, and core and functional competencies.
The definitions of these components are as follows:
Core values are principles that influence people’s actions
and the choices they make. They are ethical standards
that are based on the standards of conduct for the
international civil service and are to be upheld by all staff.
Core competencies provide the foundation of the
framework, describing behaviours to be displayed by all
staff members. They are defi ned by occupational roles for
a given job. Functional competencies are defi ned by
duties and responsibilities assumed by staff members for
a given job. Based on the job complexity and level of
responsibility, and the seniority of the occupational role,
an average of three to five functional competencies are
assigned to a given job.
Given the varied nature of its work, the Agency could
adopt numerous core and functional competencies.
However, following a thorough analysis of all scientific and
administrative fields of work, it was decided to restrict
the number to four core competencies and eleven
functional competencies. The results of this analysis
revealed that many competencies are shared across many
positions and that a more standardized approach would
ensure more effective and efficient Human Resources
Management. The competency framework consists of
three occupational roles for the core competencies and
four occupational roles for the functional competencies.
These roles refer to the primary purpose of and the
relationship between jobs.

For the core competencies, the occupational roles are

broadly defined as follows:

• The Individual Contributor — a staff member, normally

without supervisory responsibility, who is accountable for
his/her individual performance and contribution to the
outputs of the team.

• The Manager — a staff member at the middle or senior

professional level (at the P4 or P5 level) with managerial
responsibility for human and/or fi nancial resources who
oversees the delivery of programmatic results. These
functions normally include Section Head, Unit Head and
Team Leader.

• The Senior Manager — a staff member at the Director or

DDG, level who is responsible for creating an enabling
environment and takes decisions impacting the entire
programme/functional area. For the functional
competencies, the occupational roles are broadly defined
as follows:
• Individual Contributor — staff members, normally
without supervisory responsibility, who are accountable
for their individual performance and contribution to the
outputs of their team.  Associate — a junior or mid-level
General Service (GS) staff member (at the G1 to G5 level)
or junior professional (at the P1 or P2 level), who provides
support to colleagues and works under the technical
guidance of the supervisor.  Specialist — a senior General
Service (GS) staff member (at the G6 or G7 level) or
middle or senior level professional specialist (at the P3 to
P5 level) who has expert knowledge in his/her fi eld of
specialization and works independently. A Specialist does
not normally have direct supervisory responsibility for
staff members; however, he/she may assume project
management responsibilities, including the coordination of
human and/or financial resources.
• Manager — a staff member at the Middle or Senior
Professional level (at the P4 or P5 level) with managerial
responsibility for human and financial resources who
oversees the delivery of programmatic results. These
functions normally include: Section Head, Unit Head, Team
Leader and Technical Lead.

• Senior Manager — a staff member at the Director or

DDG level who is responsible for creating an enabling
environment and takes decisions impacting the entire
programme / functional area.

What are competencies?

A competency is generally defined as a combination of

skills, knowledge, attributes and behaviours that enables
an individual to perform a task or an activity successfully
within a given job. Competencies are observable
behaviours that can be measured and evaluated, and thus
are essential in terms of defining job requirements and
recruiting, retaining and developing staff.

Why use competencies?

 Competencies enable the staff of an organization to have
a clear understanding of the behaviours to be exhibited
and the levels of performance expected in order to
achieve organizational results. They provide the individual
with an indication of the behaviours and actions that will
be valued, recognized and rewarded. Using a competency
framework enables an organization to successfully align
its staff’s skills, capabilities and knowledge with
organizational priorities, resulting in business
improvement and efficiencies. Therefore, a well structured
and well defined competency framework plays a key role
in accomplishing an organization’s goals in line with its
mission and mandate.

More specifically, competencies ensure that:

• Clear expectations are set and staff members are guided
as to how they can assume and reinforce behaviours in
line with the organization’s mission, culture and goals.
• A shared language is created to describe what is needed
and expected in the work environment, thereby providing
for reliable and high quality performance delivery.
• The various facets of human resources management can
be integrated, enhancing consistency in human resources
planning, recruitment, learning and development, and
performance management, and thereby contributing to
the streamlining of human resources operations and
ultimately to efficiency gains.
• Skills gaps are addressed, strengths are further
developed and requirements for career progression are
clarified.
• Staff mobility, organizational change and shaping of the
organizational culture are fostered.

How are the competencies being used and supported?

Competencies are widely used across the Agency and are

embedded in all human resources management functions,
such as planning, recruitment, performance management
and staff development.
 They are determined by the occupational roles and
responsibilities, and the complexity of duties outlined in
job descriptions.
• For planning, competencies are applied in job design,
which involves the determination of the job content, the
requirements to carry out the job and the relationships
between the job holder and other staff. In this context,
competencies ensure that the attributes, skills and
behaviours necessary to achieve the highest performance
standards for a given job are specified.
• For recruitment, competencies form an integral part of
the selection process, facilitating the assessment of
candidates to determine their suitability for a given job.
• For performance management and staff development,
competencies facilitate the establishment of performance
standards against which staff will be assessed, and the
identification of individual and Agency-wide staff
development priorities.

Competencies Performance management Staff

development Recruitment Planning.

The Agency’s core competencies were established

through a participatory approach involving staff members
from all Departments; the functional competencies were
established by using techniques such as text mining of
relevant job descriptions, benchmarking against the
practices of other organizations in the United Nations
system and consultations with stakeholders. The outcome
was enhanced by internal and external specialists.