Vision & Mission. That business mission is so rarely given adequate thought is perhaps the most important single cause of business frustration.
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1 Vision & Mission Vision Mission & Values Importance of Vision and Mission Statements Characteristics of a mission statement Components of a mission statement Writing & evaluating mission statements That business mission is so rarely given adequate thought is perhaps the most important single cause of business frustration. Peter Drucker Vision 1-5 The last thing IBM needs right now is a vision. (July 1993) What IBM needs most right now is a vision. (March 1996) -- Louis V. Gerstner, Jr., CEO, IBM Corporation Vision 1-9 Agreement on the basic vision for which the firm strives to achieve in the long run is critically important to the firm s success.
2 SPECIFIC QUESTIONS THAT HELP FORM STRATEGIC VISIONS What business are we in now? What business do we want to be in? What will our customers want in future? What are expectations of our stakeholders? Who will be our future competitors? suppliers? partners? What should our competitive scope be? How will technology impact our industry? What environmental scenarios are possible? 1-10 Important Components of Organizational Vision Organizational Purpose Summary of What Organization Does Core Values and Beliefs Broad Goals 1-11 Values 1-12 Dimensions of Organizational Culture 1-13 The values of a person or group are the moral principles and beliefs that they think important in life and that they tend to live their lives by. Aggressiveness Stability Innovation and Risk-Taking People Orientation Attention to Detail Team Orientation Outcome Orientation Hewlett-Packard s Basic Values: The HP Way Sharing firm s success with employees Showing trust and respect for employees Providing customers with products/services of the greatest value Being genuinely interested in providing customers with effective solutions to their problems Making profit a high stockholder priority Avoiding use of long-term debt to finance growth Individual initiative, creativity, & teamwork Being a good corporate citizen 1-14 Vision A clear vision provides foundation for comprehensive mission statement Many organizations have both a vision and a mission statement, but the vision statement should be established first and foremost. The vision statement should be short, preferably one sentence, and as many managers as possible should have input into developing the statement. 1-15
3 Example 1-16 Vision Versus Mission 1-17 Vision Statement The Bellevue Hospital is the LEADER in providing resources necessary to realize the community s highest level of HEALTH throughout life. Mission Statement Answers the Question What is Our Business? Vision Statement Answers the Question What Do We Want to Become? Vision: Vision and Mission An overall picture of where the entire organization would like to be in the future Mission: A statement of what the various organizational units do and what they hope to accomplish in alignment with the organizational vision Mission Statements Mission Statements Reveal what an organization wants to be and whom it wants to serve Essential for effectively establishing objectives and formulating strategies Several examples are given in Table 2-1 in the textbook. Example 1-22 Developing Vision & Mission 1-25 Mission Statement The Bellevue Hospital, with respect, compassion, integrity, and courage, honors the individuality and confidentiality of our patients, employees, and community, and is progressive in anticipating and providing future health care services. Clear mission is needed before alternative strategies can be formulated and implemented Important to have as broad range of participation as possible among managers in developing the mission
4 Developing A Mission Reasons for Developing a Written Mission Statement A widely used approach to developing a mission statement is to Select several articles about mission statements and ask all managers to read these as background information. Ask managers to prepare a mission statement for the organization. A facilitator, or committee of top managers, should then merge these statements into a single document and distribute this draft to all managers. A request for modifications, additions, and deletions is needed next along with a meeting to revise the document. Unanimity of purpose within the organization Basis for allocating resources Establish organizational climate Focal point for direction Translate objectives into work structure Cost, time and performance parameters assessed and controlled Mission Characteristics Mission Characteristics Effective mission statements: Effective mission statements: Reflect judgments re: future growth Provide criteria for selecting strategies Basis for generating & screening strategic options Are dynamic in orientation Arouse positive feelings and emotions Motivate readers to action Generate the impression that firm is successful, has direction, and is worthy of time, support, and investment Customer Orientation 1-33 Components of Mission 1-37 According to Vern McGinnis, mission should: Define what the organization is Define what the organization aspires to be Limited to exclude some ventures-not to do Broad enough to allow for creative growth Distinguish the firm from all others Serve as framework to evaluate current activities Stated clearly so that it is understood by all Components of mission and corresponding questions to be answered: Customers: Who are the firm s customers? Products or services: What are the firm's major products or services?
5 Components of Mission 1-39 Components of Mission 1-41 Markets: Geographically, where does the firm compete? survival, growth, and profitability: Is the firm committed to growth and financial soundness? Technology: Is the firm technologically current? Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm? Components of Mission Self-concept: What is the firm s distinctive competence or major competitive advantage? public image: Is the firm responsive to social, community, and environmental concerns? 1-43 Components of Organizational Vision and Mission Statements Employees Public Image Philosophy Customers Markets Technology 1-44 employees: Are employees a valuable asset of the firm? Self-concept Products or Services Survival, Profits, and Growth PepsiCo Mission Statement Ben & Jerry s Mission Statement PepsiCo s mission is to increase the value of our shareholders investment. We do this through sales growth, cost controls, and wise investment resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity. Ben & Jerry s mission is to make, distribute and sell the finest quality all-natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. To operate the Company on a sound financial basis of profitable growth, increasing value for our shareholders, and creating career opportunities and financial rewards for our employees. To operate the Company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life of a broad community local, national and international.
6 Evaluation Matrix of Mission Statements 1-47 Evaluation Matrix of Mission Statements 1-48 COMPONENTS Organization Customers Products Services Markets Survival, Growth, Profitability Technology COMPONENTS Organization Philosophy Self- Concept Public Image Employees PepsiCo PepsiCo Ben & Jerry's Ben & Jerry's
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