Chapter Two- Mission and vision

Vision…
Hickman and Silva (1984): “It is a mental trip
from what is well-known to what is much stranger,
the creation of the future from an assemblage of
real facts, hopes, dreams, risks and opportunities ”.

Hamel and Prahalad (1994): It is a dream widely

shared in which each and every one of the people of
the organization participates.
Vision…
Morrisey (1996): “It is intuition, what is
thought that the future of the organization
should be from the point of view of the clients,
employees, owners and other important
stakeholders”.
 vision statement
— Developing a vision statement is often
considered the first step in strategic
planning, preceding even development of a
mission statement
— A vision statement should answer the basic
question, “What do we want to become?”
— An organization’s vision describes what the
organization hopes to become in the future.

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 VISION
v Vision without Action is a Daydream Action
without Vision is a Nightmare
— Not Optional – all organizations should have

Vision

— Stretch – 30+ Years

— 8-10 Words in length

— Future State

— Brief and Memorable

— Inspiring and Challenging

 Vision Examples
— “A Safer Future for All Communities”

— “See the Mountains – Breathe Freely”

— To Be the Happiest Place on Earth

— To Be the World’s Best Quick Service Restaurant

 Examples of Vision Statements
Ethiopia

The Vision of Ethiopia

— “To see Ethiopia a country where democratic rule,

good-governance and social justice reigns, upon the

involvement and free will of its peoples; and once
extricating itself from poverty becomes a middle-
income economy.”
 Examples of Vision…
Addis Ababa City Government 2025 Vision

“In 2025, Addis Ababa will be world class city, a

green, clean and livable city; with vibrant economy

and residents all living above poverty line, hub of

conference tourism and national bench-mark of

good governance.”
 Examples of Vision…
ETC’s Vision:
• To be a world-class telecommunications service
provider

Ethiopian Airlines Vision

VISION 2025 To become the most competitive and

leading aviation group in Africa by providing safe,
market driven and customer focused passenger
and cargo transport, aviation training, flight
catering, MRO and ground services by 2025.
 Examples of Vision…

CBE’s VISION

— To become a world-class commercial bank by the

year 2025.

EEPCo's Vision

— To be a center of excellence in providing quality

electric service at every ones door and being

competitive export industry.
 Benefits of Vision
• It empowers people and focuses their efforts

• It focuses energy for greater effectiveness

• It raises the standard of excellence

• It establishes meaning for today

• It gives hope for the future

• It brings unity to community

• It provides a sense of continuity

• It raises commitment level

• It brings positive change

 PITFALLS OF VISION
— If it reflects merely the leaders internal needs
— Ifinternal and external factors are not
analyzed well
— Due to lack of acceptance by the market and by
those who implement it
— Ignores stakeholders needs
— Miscalculates the resources needed and
available to achieve it
 Mission Statements
— Mission statements are “enduring statements of

purpose that distinguish one business from other

similar firms.

— A mission statement identifies the scope of a firm’s

operations in product and market terms.

— It addresses the basic question that faces all

strategists “What is our business?”

 Mission Statement Components
1. Customers—Who are the firm’s customers?
2. Products or services—What are the firm’s
major products or services?
3. Markets—Geographically, where does the firm
compete?
4. Technology—Is the firm technologically
current?

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 Mission Statement Components
5. Concern for survival, growth, and
profitability—Is the firm committed to growth
and financial soundness?
6. Philosophy—What are the basic beliefs,
values, aspirations, and ethical priorities of the
firm?
7. Self-concept—What is the firm’s distinctive
competence or major competitive advantage?

2-15
 Mission Statement Components
8. Concern for public image—Is the firm
responsive to social, community, and
environmental concerns?
9. Concern for employees—Are employees a
valuable asset of the firm?

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 Products
Services Markets
Customers

Technology

Employees
Mission
Elements

Survival
Growth
Profit
Public
Image
Self-Concept Philosophy

17 WKU- Beco- MGMT 8/30/2022

 Example Mission Statements
— Fleetwood Enterprises will lead the recreational
vehicle and manufactured housing industries (2, 7) in
providing quality products, with a passion for
customer-driven innovation (1). We will emphasize
training, embrace diversity and provide growth
opportunities for our associates and our dealers (9).
We will lead our industries in the application of
appropriate technologies (4). We will operate at the
highest levels of ethics and compliance with a focus
on exemplary corporate governance (6). We will
deliver value to our shareholders, positive operating
results and industry-leading earnings (5).

2-18
 Example Mission Statements
— We aspire to make PepsiCo the world’s (3)
premier consumer products company, focused
on convenient foods and beverages (2). We
seek to produce healthy financial rewards for
investors (5) as we provide opportunities for
growth and enrichment to our employees (9),
our business partners and the communities
(8) in which we operate. And in everything we
do, we strive to act with honesty, openness,
fairness and integrity (6).

2-19
 Example Mission Statements
— Procter & Gamble will provide branded
products and services of superior quality and
value (7) that improve the lives of the world’s
(3) consumers. As a result, consumers (1) will
reward us with industry leadership in sales,
profit (5), and value creation, allowing our
people (9), our shareholders, and the
communities (8) in which we live and work to
prosper.

2-20
 Example Mission Statements
— At L’Oreal, we believe that lasting business
success is built upon ethical (6) standards
which guide growth and on a genuine
sense of responsibility to our employees
(9), our consumers, our environment and
to the communities in which we operate
(8).

2-21
 Examples of Mission
EEPCo's Mission
— To provide adequate and quality electricity
generation, transmission, distribution and sales
services, through continuous improvement of utility
management practices responsive to the socio-
economic development and environmental
protection need of the public.
ETC’s Mission

• Connect every Ethiopian through Information

Communication Technology.
• Build its managerial capability that enables ethio
telecom to operate in an international standard.
 • Provide telecommunication services and products
that enhance the development of our Nation
• Build reputable brand known for its customers'
consideration.
• Provide telecommunication services and products
that enhance the development of our Nation.
Ethiopian Airlines፡ To become the leading Aviation

group in Africa by providing safe and reliable

passenger and cargo air transport, Aviation

Training, Flight Catering, MRO and Ground

Services whose quality and price “value

proposition” is always better than its competitors,

— To ensure being an airline of choice to its customers,
employer of choice to its employees and an investment
of choice to its Owner,
— To contribute positively to socio economic development
of Ethiopia in particular and the countries to which it
operates in general by undertaking its corporate social
responsibilities and providing vital global air
connectivity,
CBE’s MISSION

• We are committed to best realize stakeholders' needs through

enhanced financial intermediation globally and supporting

national development priorities, by deploying highly motivated,

skilled and disciplined employees as well as state-of-the-art

technology. We strongly believe that winning the public confidence

is the basis of our success.

 Functions of Mission Statements
• Ensures unanimity of purpose

• Provides a basis for motivation

• Assists allocation of organization’s resources

• Establishes the necessary organizational climate

• Facilitates the translation of objectives & goals

 Vision VS Mission
About - Essence
• 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.
• Vision: A Vision statement outlines WHERE you
want to be. Communicates both the purpose and
values of your business.
Time
— A mission statement talks about the present leading to

its future.

— A vision statement talks about your future.

 Vision VS Mission
Function
• Mission: 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.
• Vision: 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.
 Vision VS Mission
Change
• Mission: Your mission statement may change, but it
should still tie back to your core values, customer
needs .
• Vision: As your organization evolves, you might feel
tempted to change your vision. However, vision
statements explain your organization's foundation,
so change should be kept to a minimum.
 Vision VS Mission
Developing a statement
— Mission: What do we do today? For whom do we do
it? What is the benefit? In other words, Why we do
what we do? What, For Whom and Why?
— Vision: Where do we want to be going forward?
When do we want to reach that stage? How do we
want to do it?
30 WKU- Beco- MGMT 8/30/2022
 Values
— Every organization should be guided by a set of
values.
— Values are beliefs which your organization's
members hold in common and endeavor to put into
practice.
— The values guide your organization's members in
performing their work. Specifically, you should
ask, "What are the basic beliefs that we share as
an organization?"
Values
— Values are often rooted in ethical themes,
such as honesty, trust, integrity, respect,
fairness, etc.
— Values should be applicable across the entire
organization
— Values may be appropriate for certain best
management practices – best in terms of
quality, exceptional customer service, etc.
 Values
— Examples of values include: a commitment
to excellent services, innovation, diversity,
creativity, honesty, integrity, and so on.
— By developing a written statement of the
values of the organization, group members
have a chance to contribute to the
articulation of these values, as well as to
evaluate how well their personal values and
motivation match those of the organization.
Goals and Objectives
— The strategic goal setting involves:
— Translating the mission statement into
concrete terms
— Establishing the statement of desired
outcomes
— Define the benefits to be gained
 Goals
— Goals are perceived as broad statements of the end
results
— A goal is an open ended statement of what one wants to
accomplish, with no quantification of what is to be
achieved and no time criteria for completion.
Examples of goals are:
§ HR: cut absenteeism
§ Finance: reduce bad debts
§ Marketing: increase sales levels
§ Production: cut production costs, etc.
 Objectives
Objectives:
— Objectives amplify the set goals with
quantitative terms-considered as specific and
tangible ones
— Performance targets should be:
— Concrete
— Measurable
— Time framed
— Achievable
— Periodically reviewed
Objectives…
— Setting objectives means converting the
strategic vision and business mission into
specific performance outcomes the organization
wants to achieve.
— E.g : to increase sales 4%–6% each year
increase the profit margins from around
10% in 2008 to the mid-tens by 2011, …
 Objectives
— Objectives are the end results of planned activity.
— They should be stated as action verbs and tell what
is to be accomplished by when and quantified if
possible
— The achievement of corporate objectives should
result in the fulfillment of a corporation’s mission
 Goals Vs Objectives
Goals Objectives

Goals are broad Objectives are narrow

Goals are general Objectives are precise

intentions
Goals are abstract Objectives are concrete.

Goals are generally Objectives are

difficult to measure measurable
Long time frame Short term frame
Goals Vs Objectives
— A useful way of making goals and objectives
more powerful and measurable is to use the
SMART mnemonic. While there are plenty
of variants, SMART usually stands for:
—S Specific
—M Measurable
— A Attainable
— R Relevant
— T Time-bound
Exercise: Individual-Group
— What would be the probable vision and
mission of a bookseller?
END of Chapter 2
THANK YOU