New view of strategy: An interview with C.K. Prahalad

'Strategic intent', 'core competence' and 'strategy as stretch and leverage', are all management concepts that have become associated with C.K. Prahalad and his frequent co-author, Gary Hamel, most often in the pages of the Harvard Business Review, but also in other journals and books. These ideas now form the basis of much new thinking about competitiveness by strategic managers. With the publication in 1994 of Competing for the Future, C.K. Prahalad and Gary Hamel create a new view of strategy in one overall statement developing earlier HBR concepts like foresight, strategic architecture, global pre-emption and 'the need to forget'. Then, with new ideas like opportunity space, opportunity horizon, corporate challenge, and expeditionary marketing, the authors present a new language system to capture these ideas. Interviewed in Michigan by EMJ's editor, Paul Stonham, C.K. Prahalad points first that Competing for the Future is about 'democratizing' strategy -- how to engage a large number of people in creating a strategic direction, and that managers are now receptive to exploring ways of revitalizing companies. Continuing of the corporation, profitable growth, and ability to change, are all essential criteria for competitiveness. Wealth creation involves leveraging resources and creating new investment opportunities all the time. Shareholders and investors recognize this. C.K. Prahalad has views on the cultural springs of success, on innate competitive advantage, and on acquisitions as one of a number of alternative modes to acquire competence. He declines to be drawn into a close comparison of large and small companies, but prefers to focus on entrepreneurship and innovation. He points to the decreasing unilateral role of governments in international trade and finance, and to the need for innovative companies to search the global market for managerial talent. Business schools still produce functionally-biased managers; they should concentrate in future on producing at least four skills in their potential managers: teamwork, resolution of complex conflicts, languages, and operationalizing concepts. Finally, hinting in the interview of the next phase of his work, C.K. Prahalad does not lessen the anticipation of his readers.