Setting the Future Direction: From Sense‑Making to Sense‑Giving in Strategic Management

Introduction

The third session builds on the previous lesson on sensing the future direction of an organization. After identifying early signals, interpreting trends, and choosing strategic options, leaders must now communicate that future direction to all members – a process called sense‑giving.

1. From Sense‑Making to Sense‑Giving

• Sense‑making: internal analysis of the external and internal environment (environmental scanning, industry foresight, strategic planning, strategic thinking). It creates a cognitive understanding of where the organization stands and what opportunities or threats lie ahead.
• Sense‑giving: the reciprocal, communicative phase where leaders translate that internal understanding into a clear, legitimised, emotionally‑engaging message for stakeholders (employees, investors, customers, etc.).

2. Major Elements of the Strategic Management Process

The process is recursive, not linear. Key elements appear repeatedly in different phases: 1. Environmental Scanning – macro‑environment (PESTEL) and industry analysis, plus internal resource audit. 2. Strategic Position – current standing of the firm in its market and stakeholder landscape. 3. Strategy Formulation – develop alternatives at corporate, business, functional and operational levels; evaluate them on suitability, acceptability and feasibility. 4. Strategy Implementation – align leadership style, culture, structure, and capabilities with the chosen option. 5. Review & Control – monitor performance, detect deviations, and adjust.

3. Strategic Pillars for a Successful Future Direction

All four pillars must be strong and mutually reinforcing to produce a coherent future direction.

4. Articulating the Future Direction

4.1 Vision

• Definition: An inspiring, long‑term picture of what the organization aspires to become.
• Components:
• Core Ideology – enduring core values and purpose.
• Envisioned Future – audacious long‑term goals (BHAGs) and vivid descriptions.
• Function: Guides strategic choices, motivates employees, signals purpose to external stakeholders.
• Examples: Apple – “Make the best products on earth and leave the world better than we found it.”

4.2 Mission

• Definition: The tangible, operational expression of the vision – what the firm does, for whom, and how.
• Typical Elements: market scope, product/service portfolio, technology base, core competencies, strategic priorities, stakeholder focus.
• Examples: Apple – “Bring the best user experience to customers through innovative hardware, software and services.”

4.3 Goals & Objectives

• Goals: Broad, strategic aims derived from the mission (e.g., profitability, innovation, sustainability).
• SMART Objectives: Specific, Measurable, Achievable, Realistic, Time‑bounded targets that operationalise goals.
• Linkage Across Levels: Corporate → Tactical → Operational objectives must align to ensure coherent execution.

5. Additional Sense‑Giving Mechanisms

• Strategic Narratives / Storytelling – blend past, present, future into compelling stories that embed meaning.
• Symbolization – use logos, anthems, oaths, rituals to embody values and direction.
• Dialogical / Participatory Sense‑Giving – two‑way discussions, workshops, informal chats that co‑create the future direction.
• Legitimizing / Institutional Framing – align the proposed direction with prevailing social norms, cultural values, and stakeholder expectations to gain compliance and reduce resistance.

6. Putting It All Together

1. Sense‑make the environment → identify strategic position.
2. Formulate strategic options using the four pillars.
3. Select the most suitable option (suitability, acceptability, feasibility).
4. Implement with aligned leadership, culture, and resources.
5. Communicate the chosen future direction through vision, mission, goals, objectives, narratives, symbols, and participatory dialogue – the sense‑giving phase.
6. Review outcomes, gather feedback, and restart the cycle.

7. Practical Take‑aways for Students

• Treat strategic management as a continuous loop, not a step‑by‑step checklist.
• Master both analytical tools (PESTEL, SWOT, scenario planning) and creative skills (storytelling, visionary thinking).
• Recognise the human element: sense‑giving is about legitimacy, emotion, and shared meaning, not just data.
• Use the four strategic pillars as a diagnostic checklist when evaluating any organization’s future direction.

End of Article

Effective strategic management requires first making sense of the environment and then giving that sense to all members through clear vision, mission, goals, and engaging communication methods; only then can an organization align its actions and achieve sustainable success.