Strategic Vision

versus
Strategic Opportunism
APPROACH
 There are two very different approaches to the development of successful
strategies and sustainable competitive advantages.
 Each can work, but may require very different systems, culture and
people.
 Strategic Vision takes a long term perspective and the focus is on the
future , both for strategy development and supporting analysis.
 Strategic opportunism takes a short term view and the focus is on the
present benefits.
 The argument is that , the best way to have a right strategy tomorrow is to
have it right today. Alternatively, what is a wrong strategy today, is
unlikely to be the right strategy tomorrow.
Strategic Vision
 It requires the following FOUR essential elements :
1. Complete clarity about the future strategy.
2. Organization wide acceptance of the correctness of
the strategy and a commitment to make that vision
happen.
3. Assets, Competencies and Resources to implement
the strategy should be available or made available
in time.
4. Willingness to stick to the strategy in the face of
competitive threats and / or enticing opportunities
that will divert the resources away from the vision.
Organizational Characteristics
 VISION  OPPORTUNISM
 Forward looking  Present knowledge
 Watch trends affecting  Current threats and
future opportunities
 Build assets over long  Build flexibility and
periods adaptability
 Centralized structure  Decentralized
 Eye on the ball  Entrepreneurial eye
Vision – Opportunism Matrix
Strategic Strategic
Approach Risk

Focus on VISION STUBBORN-

Future NESS

Focus on OPPORTUNISM DRIFT

Present
Strategic Stubbornness
1. The Vision may be faulty and it’s pursuit may be a wasteful
exercise.
2. The vision may be accurate, but there may be
implementation barriers.
3. There may be significant paradigm shifts making the initial
vision redundant.
4. Main reason for the stubbornness is often the initial success.
5. It is difficult to change the culture without changing the key
people as the culture is evolved over time to suit the vision.
6. Nothing succeeds like success & is the chief non-incentive.
Strategic Opportunism
 It is driven by the focus on the present.
 The environment is so dynamic and uncertain that it is not
feasible to take a long term view.
 Unless the business is structured to take strategic advantage
in the present , it is unlikely to be strategically successful in
the future.
1. Risk of missed opportunities is minimized.
2. Risk of strategic stubbornness is also reduced.
3. Strategic opportunism makes the people entrepreneurial.
4. Decentralized firms are closer to the market.
5. The reaction time is much lower.
Strategic Drift
 Investment decisions are made incrementally
in response to opportunities rather than
directed by a long term vision.
 As a result, a firm may find itself, after a
while, in a set of totally new businesses, for
which it does not have the requisite assets and
competencies and which provide little
synergy.
Risks of Strategic Drift
1. Short lived transitory trend or force may be
mistaken for one with enough staying power.
2. Opportunities to create immediate profits may be
rationalized as strategic, when they are not.
3. Expected synergies across existing and new
opportunistic businesses may fail to materialize
owing to implementation problems.
4. Assets and competencies so built may not support
the core business.
Dynamic Vision
 Dynamic Vision is one which can change in
anticipation of emerging paradigm shifts.
 This is difficult, but the pay off is huge.
 Microsoft’s focus progressed from operating
systems to applications to the internet as the
paradigms changed.
 Strategic opportunism can support strategic vision
by managing diversification away from the core
business.