strategic management and leadership_unit2_ vision and mission

compiled by Roshan pant 1

Chapter 2:Company Vision and mission


concept• Organizations summarize their goals and objectives in mission and

vision statements. • Both of these serve different purposes for a company but are often

confused with each other. • While a mission statement describes what a company wants to do now,

a vision statement outlines what a company wants to be in the future• Mission Statement concentrates on the present; it defines the

customer(s), critical processes and it informs you about the desired level of performance.

• Vision Statement focuses on the future; it is a source of inspiration and motivation. Often it describes not just the future of the organization but the future of the industry or society in which the organization hopes to effect change.


Mission• A Mission statement talks about HOW you will get to where you

want to be. Defines the purpose and primary objectives related to your customer needs and team values.

• It answers the question,what is our business? And “What do we do? What makes us different?”

• A mission statement talks about the present leading to its future• It lists the broad goals for which the organization is formed. Its

prime function is internal; to define the key measure or measures of the organization's success and its prime audience is the leadership, team and stockholders.

• Your mission statement may change, but it should still tie back to your core values, customer needs and vision.


Characteristics of mission

Should be broad in scope (should include diverse elements to justify its reason for existence in the eyes of different stakeholders)

Generates range of feasible strategic alternatives Not excessively specific Reconcile interest among diverse stakeholders Should be enduring or long-lasting Should not be too long (generally 50-100 words) Should be simple to understand yet

inspiring


Importance of mission• It determines the company’s direction:remind team why their company exists, “It’s your

direction, not your intention, that determines your destination.” • It focuses the company’s future:The mission tells us what we’re doing today that will then

take us where we want to go in the future.• It shapes strategy:strategies must not be created in a vacuum it is the mission that shapes

strategy• It facilitates evaluation and improvement:What you measure will be your mission.” If you

have a clear, written statement of mission you will know exactly what to measure and how to measure it.

• It welcomes helpful change:if the mission is clear, then team members are more likely to see the value of the change and how it helps the organization accomplish the mission

• It provides a template for decision-making:A clear mission sets important boundaries which enable business owners to delegate both responsibility and authority. It provides a framework for thinking throughout the organization.

• It forms the basis for alignment:The mission statement forms the basis for alignment not only with the owner, but the entire team and organization. Your team will all be on the same page when it comes to what you do and why you do it, which leads to better effectiveness and efficiency.


Eg:of mission statement

• “To provide innovative banking services in the ways customers want to be served in every nook & corner of the country – and help the nation achieve its cherished mission of socio-economic transformation. In doing so, we will use state-of-the-art technology and make best use of resources taking into account the requirements of people, profit and planet.”

• (thus What a company does and how it will achieve it is a mission statement)


Writing mission statement


Writing mission statement• WRITE:Start with a market defining :makes your business special for your target customer.

Consider (Who are we?, What is our job?, Why are we doing this?, For whom do we do it?)

•PLAN:To use a mission statement, the next step is translating it into a plan that includes specific goals and actions. This requires three simple steps:•Unbundling the mission statement•Specifying goals•Identifying next steps

Consider what your business does for employees•Qualities like fairness, diversity, respect for ideas and creativity, training, tools, empowerment, and the like, actually really matter.that every one claims•strive for a differentiator and a way to make the general goals feel more concrete and specific.•for example, that business differentiated its goals of training and empowering employees by making a point of bringing in very high-quality educators and presenters to help employees’ business expertise grow.

Define how your customer’s life is better because your business exists•Don’t undervalue your business•Offer trustworthy unique policies, is doing something good.•Claims about being good for the world need to be meaningful, and distinguishable from all the other businesses.

In terms of needs and wants Target customer or buyer persona How your business is different most other(uniqueness) Ethical standard Who it seeks to serve? How it defines its product,market and competency? What are critical actors and measurements


2.DO• :Identify your risk profile

– Assess the risks, identify what could cause harm in the workplace, who it could harm and how, and what you will do to manage the risk– Decide what the priorities are and identify the biggest risks

• Organise your activities to deliver your plansIn particular, aim to: – Involve workers and communicate, so that everyone is clear on what is needed and can discuss issues - develop positive attitudes and

behaviours– Provide adequate resources, including competent advice where needed

• Implement your plan – Decide on the preventive and protective measures needed and put them in place– Provide the right tools and equipment to do the job and keep them maintained– Train and instruct, to ensure everyone is competent to carry out their work– Supervise to make sure that arrangements are followed

3.CHECK:Check to see that the steps that were supposed to be taken have been taken. If they haven’t been taken, ask why not. If they have been taken, ask if there’s been progress towards the goal. The check is a daily or weekly process that allows for learning and adjustment as a project moves forward.

4.ACT:Revisit the mission and related goals on a weekly or monthly basis to make sure that the process is on track and that the steps that have been taken are moving the project forward. The revisit is also an opportunity to ask the questions, “What have I learned? About the project? About myself? About others? About improvement in general?”


Vision• A Vision statement outlines WHERE you want to be. Communicates both

the purpose and values of your business.• It answers the question, “Where do we aim to be?”• A vision statement talks about your future.• It lists where you see yourself some years from now. It inspires you to give

your best. It shapes your understanding of why you are working here.• As your organization evolves, you might feel tempted to change your

vision. However, mission or vision statements explain your organization's foundation, so change should be kept to a minimum.

• A vision is a mental picture of the result you want to achieve---a picture so clear and strong it will help make that result real. A vision is not a vague wish or dream or hope. It’s a picture of the real results of real efforts. It comes from the future and informs and energizes the present.


Importance of vision statement Provides the direction for the entire organization

and sets the context for strategic management process

Motivates, inspires & empowers people Helps people decide what to do and what not to

do in the course of their work Helps to get stakeholder support, as needed Reflects company’s unique capabilities Results in efficiency and productivity


Comparisons

Mission Vision

Answers Why? What?

Definition Statement Snapshot

Length Short Long

Purpose Informs Inspires

Activity Doing Seeing

Source Head Heart

Order First Second

Effect Clarifies Challenges


Strategic intent• The strategic intent of an organisation describes how the firm’s energy and resources are channelled

into a focused and unified overall goal • Strategic intent answers the question: “What exactly are we trying to accomplish?”• Strategic intent can provide a sense of direction, a particular point of view about the long-term market

or competitive position the organization hopes to develop and occupy.• Strategic intent can provide a sense of discovery in that it holds out to the organization’s members the

promise of learning about other organizations that operate in the same market, adopting their best practices and avoiding pitfalls.

• Strategic intent can provide a sense of destiny, a worthwhile goal around which energies can be focused across the organization.

• The strategic intent of a business needs to be easily understood by every member of the firm so that all staff can be working toward a consistent overall goal.

• Yet Strategic Intent is not enough by itself and here is the twist in the entire story. There must be commitment and cooperation. Excellent leaders recognize there are different "Styles" in their organization. Think of these styles: Forceful, Cooperative, High Structure, Command and Control,. How can these significantly different styles work together? This is the question that has to be answered by most of the organizations for effective implementation of Strategic Intent. It is important to create an understanding of both, self and others.


What does Strategic Intent do???

• It is a vision that explains the desired leadership position of a firm and grounds the goals by which success can be assessed.

• Moreover, it takes an active management to focus organizational attention at every level in the firm on the "essence of achieving the goal".

• Employees in a firm which are grounded in strategic intent have the same mission of beating the competition, being the best, being the market leader, etc.

• Strategic intent accomplishes this by setting objectives that require personal efforts throughout the organization and produce a team-commitment to targeted objectives.

• Strategic intent should be constant over time, should provide short term stability to focus on actions, while allowing longer range of flexibility to take advantage of newer opportunities without sacrificing the "strategic intent" itself.


Classification of strategic intent• If we have to broadly divide Strategic Intent into subdivisions then we

may classify it into three parts, namely, Stretch, Leverage and Fit• Stretch stresses on the basic definition of Strategic Intent as to stretch

the resources and capabilities to the extent that achievement of end is ensured.

• Second is Leverage, which refers to the scenario where resources are leveraged by accelerating the pace of organization learning so as to attain impossible goals. Here key success factors are may, namely, Concentration, Accumulation, Complementing and Conservation and Recovering.

• And Third is Fit which refers to the case where ideally resources have been made available in such a manner so that high level of Aspirations may still be easily achieved with help of resources available.


Attributes of strategic intent• There are three major attributes of Strategic Intent, namely Sense of Direction,

Sense of Discovery and Sense of Destiny.• Sense of Direction, refers to the "Long-Term Market or Competitive Position". For

instance, we may consider the case of Canon and Xerox, which are rival organization in the photocopier field for decades now. If we talk of Canon, its long term competitive position, put in simple terms, should be "Beat Xerox" .

• Second attribute which is the Sense of Discovery refers to "the competitively unique point of view about future. It says that Strategic Intent is differentiated because here in this case the employees are affiliated and they are convinced about the concept of Strategic Intent". For instance, employees of a company are taught about the concept and they are in a position to promise higher personal and professional goals to themselves.

• Last but not the least attribute is the Sense of Destiny refers to the emotional edge that is involved with the Strategic Intent. This takes Strategic Intent to an all-together new level by including the employee's emotions with the organization aspirations. This leads to an all over harmonic progress for everyone.


Purpose of strategic intent• Expression of strategic intent is to help individuals and

organizations share the common intention to survive and continue or extend themselves through time and space.

• The logic, uniqueness and discovery that make your strategic intent come to life are vitally important for employees. They have to understand, believe and live according to it.

• Expression of strategic intent is to help individuals and organizations share the common intention to survive and continue or extend themselves through time and space


Conclusion for intent• The crux of entire slide is that top management must involve all

levels of the organization in acquiring global competitiveness. • Managers must have a belief in their capability to succeed in

gaining the strategic intent by ensuring consistency in vision up and down the organization.

• Managers should motivate the organization, should focus attention long enough to vitalize new capabilities, and should have confidence in their own abilities to involve the entire organization in the revitalization versus an incremental change strategy.

• It is only when the entire organization is involved & committed to success can the organization become a global leader.

strategic management and leadership_unit2_ vision and mission

Leadership & Management