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Sumit Mitra IIMK
It paints a picture of a company’s destination and provides a rationale for going there.Strategic Vision • A strategic vision is a road map showing the route a company intends to take in developing and strengthening its business. • Aspirations of a company • How is it developed ? .
Examples: Vision Slogans Scotland Yard “To make London the safest major city in the world.” Greenpeace “To halt environmental abuse and promote environmental solutions.” Charles Schwab “To provide customers with the most useful and ethical financial services in the world.” .
Characteristics of Effective Vision To make London the safest major city in the world • Graphic – paint a picture of what the company is trying to strive for • Directional – say something about future destination • Focused – specific enough to allow managers to make decisions and allocate resources • Flexible – needs to be less specific • Feasible – should be within the realm of achievement • Desirable – address all stakeholders • Easy to Communicate – easy to explain .
Communicating the Strategic Vision Very Important is Effective Communication of Vision to stakeholders- • Levi Strauss & co. • Winning support for the vision involves – Putting “where we are going and why” in writing – Distributing the statement organization-wide – Having executives explain the vision to the workforce . • Nike: to bring innovation and inspiration to every athlete in the world.: we will clothe the world by marketing the most appealing and widely worn casual clothing in the world.
" .Core Purpose OR Mission • Mission defines organization core purpose – Answer to What Business Are We IN or Should Be In? In terms of customers – Ask „Why‟? • Purpose statement from Apple Computer: "To make a contribution to the world by making tools for the mind that advance humankind.
and – Why we are here e.Characteristics of a Mission Statement • Defines current business activities. Google‟s states „to organize the world‟s information and make it universally accessible and useful‟ .g. highlighting boundaries of current business – Present products and services – Types of customers served • Conveys – Who we are. – What we do.
To help people and businesses throughout the world realize their full potential Do these say ‘who we are or what we do?’ .„to benefit and refresh everyone it touches‟ .A company’s mission is not to make a profit! Its true mission is its answer to “What will we do to make a profit?” Making profit is an objective or intended outcome! Are these good Mission statements? .
Strategic Vision vs.“who we are and what we do” – Current product and service offerings – Customer needs being served – Technological and business capabilities . Mission • A strategic vision concerns a firm‟s future business path “where we are going” – Markets to be pursued – Future product/market/ customer/technology focus – Kind of company management is trying to create • The mission statement of a firm focuses on its present business purpose .
Linking Vision/Mission to Values • Core values are beliefs. ethics.G DuPont‟s. respect for people and environment . .May need to conduct value workshops to create support for values. traits that guide pursuit of vision and strategy besides conduct and behaviour of individuals e.Values are DNAs of company .safety.
Setting Objectives • Purpose of setting objectives – Converts vision into specific performance targets – Creates yardsticks to track performance – Pushes firm to be inventive. and focused in its actions Establishing objectives converts the vision into concrete performance outcomes [links strategy making to strategy execution] . intentional.
.both financial and strategic • Spell-out how much of what kind of performance by when • Well-stated objectives are – Quantifiable – Measurable – Contain a deadline for achievement Bill Hewlett of HP said „ you cannot manage what you cannot measure… what gets measured gets done.” • All objectives need to stretch organization..Characteristics of Good Objectives • Represent commitment to achieve specific performance targets.
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