VISON STATEMENT EXERCISE CUM PRESENTATION

Name: Sanjit Kumar Moharana Group: 8 Section: 1

Name of the company: KRBL LTD.

Web site address: http://www.krblrice.com/

Market Capitalization: Rs 5,648.24 Crore as on date 06/01/2016. (Source: http://www.bseindia.com/)

This is an important guided practical exercise in vision building. It pertains to the competency of creating a vision statement to fulfill the role of ‘direction setting’ by a leader.

This is an individual cum group exercise and would bear marks to be included in your class participation, and the skill will be tested in mid and end term examinations with significant weight. There are marks for the written work individually and there are marks for the group for the presentation. Hence both components are important. The overall marks will be your individual mark+group mark divided by 2 and then the marks will be considered for evaluating your class participation which would be not less than 20 percent of the class participation marks but can higher in case of exceptional work.

Exercise Instruction: You must read the Collins and Porras Model (given as readings S4B and S4C of course pack) of vision statement and should follow it strictly for this exercise. Following any other models, will not fetch any marks. This handout clarifies the instructions given under the heading ‘Session 5 and 6 – Presentations’ in page 146 in your course pack. If there are any dichotomies between that and this handout, this handout supersedes the course pack material.

Clarifications:

The two readings mentioned above might tend to create some confusion (some former batch students have mentioned so). It is clarified that vision statements have 1) core values, 2) core purpose, 3) Big Hairy Audacious Goal and 4) a vivid description. In other words, you should find if the vision statement of companies have all the four components. The confusion comes when people write the first three and then add the fourth as vivid description. This is incorrect. Vivid description means describing the first three vividly and not describing the first three and then adding another component called vivid description.

What are core values? If you see your course pack, page 148, we have given a list of values by Rockech (terminal and instrumental values) and also by Schwartz. Follow the Schwartz model as the values given in the table are more organization oriented the values of terminal and instrumental by Rockeach is more individual oriented. For example, the openness to change value with self-direction and stimulation are highly organization oriented and individual oriented. Therefore it is better to evaluate an organization’s values from Schwartz’s model. An organization should have four to six values. If there are too many, it becomes too complicated and no one knows what is core and what not core is.

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Core Purposes. This is in fact a ‘to be’ statement distinguished from ‘to do’ statement. In core purpose organizations tend to make statements such as ‘to be the most admired marketing company, ‘to be known for innovative pharmaceutical company’, ‘trusted name in retain investment’, ‘to be the flavor of coffee in India’ and similar ones. There can be a bit of abstractness in this. It is quite acceptable. The real test is to check whether they indicate the ‘value proposition’ of the business clearly. For example, if you are a coffee company, you can say flavor of coffee. The acid test is what you aspire to be in the value proposition.

Big Hairy Audacious Goal. The tern Big Hairy is a US vestige. Kids in US used to be told the stories of bear. A bear is a symbol of strength and audaciousness in the US. So, the business authors have borrowed the big and hairy from this and called the goal Big, Hairy, Audacious goal (BHAG) pronounced as Bee-haag. The crux of it is that it is the specific stuff that you will do. It has to be SMART (specific, measurable, attainable, realistic and time bound). Additionally, it has to be audacious too. Audaciousness is a matter of probability. We consider something audacious if the probability of achieving it is 70% (a guideline/guestimate). If it is more probable, say 90% probably, it would be too easy and not audacious, and if less, say, 40 percent, it may be too unrealistic. Let us now take an example and say that the BHAG for TAPMI is “to be within top ten ranking business schools in India by 2020”. This can be considered a good BHAG because it is specific (within top 10), measurable (from the ranking outputs), attainable and realistic (70% probability) and time bound (year 2020). Similarly if the Tata group says “to be a US $ 350 billion company by 2025”, it may be also be a good BHAG because it is now more than 100 billion, it grew from 8 billion to 100 billion between 2000 and 2015. So, a 70% growth would be at least 70% probable.

Method of Exercise.

1. Each individual has been allotted a company as per the list attached in S5E of the handout (which has not been attached as hard copy but mailed). You are required to evaluate the direction setting of the company allotted to you. Evaluation should be done as per the method given below. Then meet in your group and discuss which company would be a good one to bring out the lessons. Present the case as a group. Your presentation should be for about 10 minutes to include questions.

2. Direction setting is done through vision statement. A vision statement should: be well communicated have inspiration power have Core values have Core purposes have a Big Hairy Audacious Goal be Vividly described

The format of the exercise will take you through this process. The method is intended to help you evaluate the direction setting of a company through a protocol.

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Well communicated. Let us take ‘well communicated’ first. Since we are not employees of an organization, we can only say that a vision is well communicated if the vision is well articulated in the website of the company. It means that (follow the guideline in the table below):

Pts Score granted by you

1. On opening the website, there is a clear and prominent link to the vision of the company. (if yes, give 10, else 0)

10 0

2. If not, type typed vision in the search box of the web site of the company, and the vision was displayed immediately. (if yes, give 8, else 0)

8 8

3. I clicked various options such as about us and reached the vision statement. I clicked ---- (state the No of clicks in figure) before I was able to reach the vision statement. (Evaluate as per the guideline below and write in the column opposite.

A. If 1 click – 8 ptsB. If 2 clicks – 7 ptsC. If 3 clicks – 6 ptsD. If 4 clicks – 5 ptsE. If 5 clicks – 4 ptsF. If 6 clicks – 3 ptsG. If 7 clicks – 2 ptsH. If 8 clicks – 1 ptI. if 9 or more clicks – 0 pt.

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4. Your comment on the experience of finding the vision statement (round the appropriate choice)

A. Exceptionally exciting experienceB. Very Exciting experienceC. Exciting experienceD. NeutralE. A little frustrating experienceF. Moderately frustrating experienceG. Highly frustrating experience.

Learning Point: This is a surrogate measure for pride in vision and communication of the vision. If your company is proud of the vision statement, they will announce it from roof top.

What is the vision statement? (Copy from the site and paste in the box below). In case you could not find, state “could not find the vision statement”.

Vision Statement:

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To preserve and enrich the legacy of Basmati in India by ensuring the genetic integrity of the seed, by encouraging farmers to adopt scientific agricultural practices and by leveraging world-class rice processing technologies, so as to emerge as the industry benchmark for product quality and customer service.

Your Comment: How inspiring is the vision statement? (round the appropriate answer)

A. Exceptionally inspiring

B. Very inspiring

C. Inspiring

D. Neutral

E. Not very inspiring

F. Not inspiring

G. Not at all inspiring

If you found the vision statement inspiring, what words in the statement inspired you? (State 3 words or terms that inspired you in order of their priority)

1. Priority 1 (word/term): Preserve and enrich the legacy of Basmati in India

2. Priority 2 (word/term): To emerge as the industry benchmark for product quality and customer

service.

3. Priority 3 (word/term) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

If you did NOT find the vision statement neutral or not inspiring, what was the reason for it? (Describe in brief)

Learning point: The need to create a vision is self-explanatory. You need to focus on doing so while making the vision of a company or a vertical or a team.

Core Values.

Are the core values a part of the vision statement? 1. YES 2. NO (Round the appropriate answer)

If NO, where is it given in the web site? _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

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What are the core values of the organization as given in the vision statement? (Narrate ditto from the web site)

1. To preserve and enrich the legacy of Basmati in India

2. By ensuring the genetic integrity of the seed

3. By encouraging farmers to adopt scientific agricultural practices

Learning Point: Core values are important to align people to your vision; whether of the organization, vertical or a team. If the organization does not have the values well-articulated, you will find it difficult to align your team. Remember that in a few months from now, you will be a team leader of a nested team (a team that is part of an organization) and would have to know the vision statement to align your team’s actions to the organizational goals.

Core Purpose

Are the core purpose of the organization clearly a part of the vision statement? 1. YES 2. NO (Round the appropriate answer)

If NO, where is it given in the web site? _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

What is/are the core purpose of the organization as given in the vision statement? (Narrate ditto from the web site)

1. To emerge as the industry benchmark for product quality and customer service.

2. To preserve and enrich the legacy of Basmati in India

3. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Learning Point. Core purpose must be well articulated in the vision statement. It gives the organization a direction to move.

Audacious Goal

Does the vision statement have audacious goals? 1. YES 2. NO (Round the appropriate answer)

Does the audacious goals have a time frame? 1. YES 2. NO (Round the appropriate answer)

The audacious goals and their probability of achievement: (Narrate this in the table below from 1 to 4 and then record the probability of achieving using the rating guide given below). Use the following standards to describe the probability of achieving. Some companies may have more than one BHAG

1. 35 to 45 % probable to achieve the goal – Highly impractical.

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2. 46 to 55 % probable to achieve the goal – Impractical. 3. 56 to 65% probable to achieve the goal – Over audacious. 4. 66 to 75 % probable to achieve the goal –Big Hairy Audacious5. 76 to 85 % probable to achieve the goal – Non-audacious. 6. 86 to 95 % probable to achieve the goal – Highly non-audacious. .7. Greater than 96 % probable to achieve the goal – Very mundane.

S No Audacious goal (as stated in the vision statement) or BHAG Probability of achieving in the time frame (Use the standards such as highly impractical, over audacious etc. given above.

1. To preserve and enrich the legacy of Basmati in India Big Hairy Audacious2.

To emerge as the industry benchmark for customer service Big Hairy Audacious3. To emerge as the industry benchmark for product quality Big Hairy Audacious

4. To emerge as the industry benchmark for agricultural technology, farmer engagement

Big Hairy Audacious

Learning point: Goals that have a probability of achieving should be ‘Big Hairy Audacious’. Only then it will be challenging. Evaluate from current strength of the company, how it has grown so far while making this assessment in relation to the goals specified. For example, Tata group grew from 8 billion to 100 billion between 2000 and 2015. It plans to reach 350 billion by 2025. You could give it at least a 70% chance.

Vivid Description

How vivid is the description?

A. Exceptionally Vivid

B. Very vivid

C. Vivid

D. Neutral

E. Not very vivid

F. Not vivid

G. Not at all vivid

Your Recommendation:

What is the modification you suggest in the vision statement? Specify the statement you recommend

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Option 1 :To preserve and enrich the legacy of Basmati in India and emerge as the industry benchmark for agricultural technology, farmer engagement, product quality and customer service.

Justification for the recommendation:Recommended vision statement covers all the aspects of what the company wants to achieve in long term. It is already a market leader in Indian rice industry. Current vision statement talks about use of scientific technology and agricultural technology, which is getting redundant. Also, the working methodology need not be mentioned in the vision statement.

Option 2:

Justification for the recommendation

Note: If you recommend no change, you should justify why you make such a recommendation in the space below

If you make a recommendation that no change is required, justify the same in the space below:

Learning point: You should able to create a visions statement at organizational, vertical or team level to inspire and align the people. This exercise hones your skill for it.

Note: You might like to keep a copy of this as it can help you to create a new vision statement in the place of your work.

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