Planned / intended strategy

The ability to foresee emerging forces of change, plan strategic measures in advance and avoid/minimise contingencies are important traits of effective leaders and managers. Deliberately formulated by managers and leaders, intended strategy is often the result of strategic leadership or strategic planning based on environmental analysis and the exploration of opportunities or based on competitor activity. Strategy is determined in one of three ways:

• Strategic leadership and the vision for the future of the organisation are key and are commonly seen in smaller organisations or larger organisations where the leader is considered to be popular through earlier strategic changes, is the 'face' of the organisation or may be the original owner who is still involved with the business. Strategy determination could be the sole decision of the leader, or they could determine the overall vision. If more democratic, the leader could consult with key personnel and encourage ideas and views regarding strategy and then weigh up the options proposed.
• Alternatively, strategy could be developed through a formal planning process, where the senior leaders/organisation's head office determine guidelines and then individual business units/departments determine their own strategic plans for approval by head office/senior leaders.
• The final way in which intended strategy can be developed is where it is externally imposed. This could be by stakeholders, government policy or legislation, or head office or senior management's vision and stated objectives. Alternatively, it could be a result of earlier decisions.

Although planned or intended strategy has been widely used in corporate organisations, organisations in the public sector and small and medium enterprises (SMEs) may have different contexts. Planned strategy is not necessarily always appropriate, and an alternative strategy may be required. In the next unit, we will explore alternative strategies more.