strategic+management+5
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Strategic ManagementBHRM 31124
R.A.Ishanka ChathuraniLecturer (prob)Department of Human Resource ManagementFaculty of Commerce & Management StudiesUniversity of Kelaniya
Vision, Mission, Goals and Objectives Learning outcomes
After completing of this topic, students should be able to,
◦ Describe the nature and role of vision, mission, goals and objectives in strategic management
◦ Identity the components of mission statement
◦ Discuss how clear vision and mission statements can be benefit other strategic management activities
◦ Evaluate mission statements in different organizations
◦ Develop good vision and mission statements
What is vision? :- What do we want to become?
Foresight or power of seeingVision must focus on futureServe as a concrete foundation
for the organization Vision never change but it serves
as an enduring promise-remained fixed
Vision
A strategic thinker should have a good vision for the future. This has three aspects. They are,◦What the business is now◦What it could be in the ideal world◦What the ideal world would be like
Problems with vision It ignores real, practical problemsIt can generate into wishful
thinking
Benefits of a visionA vision enhances a wide range
of performance measuresA vision promote changeA vision provides the basis for a
strategic planA vision motivates individuals
and facilitates the recruitment of talents
A vision helps keeping decision making in context
Examples for Vision statements "All Sri Lankans seamlessly
connected with world-class information, communication and entertainment services.“ (Sri Lanka Telecom)
Mission :- What is our business?Organizations basic function in
society, in terms of the products and services it produces for its clients’ (Mintzberg)
Mission Statement
• Captures the essence of why the organization exists – Who we are, what we do • Explains the basic needs that you fulfill• Expresses the core values of the organization• Should be brief and to the point• Easy to understand• If possible, try to convey the unique nature of your organization and the role it plays that differentiates it from others
Components of a of MissionCustomers – Who are the firm’s
customers?Products or services – What are the
firm’s major products or services?Markets – Geographically ,where does
the firm operating?Technology – Is the firm technologically
current?Concern for survival, growth and
profitability – Is the firm committed to growth and financial soundness?
Cont…Components of a of Mission
Philosophy – What are the basic beliefs, values, aspirations and ethical priorities of the firm?
Self-concept – What is the firm’s distinctive competence or major competitive advantage?
Concern for public image – Is the firm responsive to social, community and environmental concern?
Concern for employees – Are employees a valuable asset of the firm?
Characteristics of Mission Statement BrevityFlexibilityDistinctiveness
The importance of missionValues and feelings are integral
elements of consumers’ buying decisions, as evidenced by advertising, branding and market research. Customers not only ask ‘What do you sell? But What do you stand for?
To motivate employeesMany firms take mission seriously in
strategic management
Examples for Mission statements "Your trusted and proven partner
for innovative and exciting communication experiences delivered with passion, quality and commitment“
(Sri Lanka Telecom)
Examples – Good and BadMission Statements
To Make People Happy
To Explore the Universe and Search for Life and to Inspire the Next Generation of Explorers
NASA
Walt Disney
Does a good job of expressing the core values of the organization. Also conveys unique qualities about the organization.
Too vague and and unclear. Need more descriptive information about what makes the organization special.
Evaluating Mission StatementAn evaluation matrix of mission statement (An Example)
Organization
Components
Goals• The intention behind decisions or actions, the states of mind that derive individuals or collectives of individuals called organizations to do what they do (Minzberg) •Describes a future end-state – desired outcome that is supportive of the mission and vision.• Shapes the way ahead in actionable terms.• Best applied where there are clear choices about the future.• Puts strategic focus into the organization – specific ownership of the goal should be assigned to someone within the organization.
Cont….
Examples of GoalsReorganize the entire organization for better responsiveness to customers
Reorganize the entire organization for better responsiveness to customers
We will partner with other businesses, industry leaders, and government agencies in order to better meet the needs of stakeholders across the entire value stream.
We will partner with other businesses, industry leaders, and government agencies in order to better meet the needs of stakeholders across the entire value stream.
Manage our resources with fiscal responsibility and efficiency through a single comprehensive process that is aligned to our strategic plan.
Manage our resources with fiscal responsibility and efficiency through a single comprehensive process that is aligned to our strategic plan.
Improve the quality and accuracy of service support information provided to our internal customers.
Improve the quality and accuracy of service support information provided to our internal customers.
Establish a means by which our decision making process is market and customer focus.
Establish a means by which our decision making process is market and customer focus.
Maintain and enhance the physical conditions of our public facilities.Maintain and enhance the physical conditions of our public facilities.
Goal CongruenceThe goals sets fro different parts
of the organization should be consistent with each other
Eg :-
Objectives
Relevant - directly supports the goalCompels the organization into actionSpecific enough so we can quantify and
measure the resultsSimple and easy to understandRealistic and attainableConveys responsibility and ownershipAcceptable to those who must executeMay need several objectives to meet a
goal
Objectives are
Specific
Measurable
Attainable
Results-oriented
Time –bounded
Types of Objectives
1. Primary and Secondary objectives
2. Long term objectives and short term objectives
Goals vs. Objectives
GOALS OBJECTIVES
Very short statement, few words
Longer statement, more descriptive
Broad in scope Narrow in scope
Directly relates to the Mission Statement
Indirectly relates to the Mission Statement
Covers long time period (such as 10 years)
Covers short time period (such 1 year budget cycle)
Major Components of theStrategic Plan / Down to Action
Mission
Vision
Goals
Objectives
Measures
Why we exist
What we want to be
Indicators and Monitors of success
Desired level of performance and timelines
Planned Actions to Achieve Objectives
O1 O2
AI1 AI2 AI3
M1 M2 M3
T1 T1 T1
Specific outcomes expressed in measurable terms (NOT activities)
Strategic Plan
Action Plans
Evaluate Progress
Targets
Initiatives
What we must achieve to be successful
- The End -