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1/10

Strategic Visionversus

Strategic Opportunism

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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 andpeople.

Strategic Vision takes a long term perspective and the focus is on thefuture , both for strategy development and supporting analysis.

Strategic opportunism takes a short term view and the focus is on thepresent benefits.

The argument is that , the best way to have a right strategy tomorrow is tohave it right today. Alternatively, what is a wrong strategy today, is

unlikely to be the rig

ht strategy tomorrow.

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Strategic Vision It requires the following FOURessential elements :

1. Complete clarity about the future strategy.

2. Organization wide acceptance of the correctness ofthe strategy and a commitment to make that visionhappen.

3. Assets, Competencies and Resources to implementthe 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 opportunitiesthat will divert the resources away from the vision.

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Organizational Characteristics VISION

Forward looking

Watch trends affectingfuture

Build assets over long

periods

Centralized structure

Eye on the ball

OPPORTUNISM

Present knowledge

Current threats andopportunities

Build flexibility and

adaptability

Decentralized

Entrepreneurial eye

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Vision Opportunism MatrixStrategic

Approach

Strategic

Risk

Focus on

Future

VISION STUBBORN-

NESS

Focus on

Present

OPPORTUNISM DRIFT

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Strategic Stubbornness1. The Vision may be faulty and its 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 ch

ange th

e culture with

out ch

anging th

e keypeople as the culture is evolved over time to suit the vision.

6. Nothing succeeds like success & is the chief non-incentive.

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Strategic Opportunism It is driven by the focus on the present.

The environment is so dynamic and uncertain that it is notfeasible to take a long term view.

Unless the business is structured to take strategic advantagein the present , it is unlikely to be strategically successful inthe 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.

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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 andcompetencies and which provide little

synergy.

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Risks of Strategic Drift1. Short lived transitory trend or force may be

mistaken for one with enough staying power.

2. Opportunities to create immediate profits may berationalized 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.

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Dynamic Vision Dynamic Vision is one which can change in

anticipation of emerging paradigm shifts.

This is difficult, but the pay off is huge. Microsofts 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.