Building your company’s vision

Harvard business review – case study 1 (sept-oct 1996)

– We shall not cease from exploration
– And the end of all our exploring
– Will be to arrive where we started
– And know the place for the first time .

– By T.S . ELIOT
 Developing a vision
• One should understand what should never
change and what should be open for change
• Success lies in the ability to manage
continuity and change
• Possess the discipline to manage change
 How does a vision help
• Should be understood by everyone

• One needs to understand :

– Guidelines about what to preserve (present )
– What lies in the future
Vision – habits of successful visionary c
ompanies
• A well conceived vision has two major
components

Core values
Core ideology Envisioned
Core Future
purpose
Core ideology & Envisioned future

• Core ideology – defines for what we stand

for and our existence

• Envisioned future – Is what we aspire to

become , to achieve , to create – something
that will require significant change and
progress to attain
 Core Ideology
• The enduring character
• Consistent identity that transcends product / market life
cycles, technology, management fads, and individual
leaders
• It is the most lasting and significant contributions for
those who build visionary companies .
• Eg “HP’S Way”- H.P. Core ideology which includes
deep respect for individuals, dedication to affordable
quality and reliability, a commitment to community
responsibility. *pg 66
 Cont:
• It provides the glue that holds an organization
as it grows , decentralizes , diversifies ,
expands globally and develops workplace
diversity.
• Core ideology is further divided :
– Core values-- a system of guiding principals
– Core purposes-- reason for existence
 Core values

Essential tenets, a small set of timeless guiding

principles, require no external justification,
they are intrinsic. They may have competitive
advantage or may even be a competitive
disadvantage.*pg 68(chart)
 Core values:

• Core values are independent of the current

environment ,competitive requirements, or
management fads.
• The key is not what core values an organization
has but that it has core values at all.
• Companies have 3 to 5 core values – visionary
companies . Few values can be core that can
seldom change.
 Cont:
• Strategy can change - core values do not
change.
• Even if the current market does not value ,
find markets, if necessary , to remain true
to it core value.
• Who should be involved in articulating the
core values - Mars group
 Identification of core values :
• Identify what values are truly central
• Don’t confuse core values with operating
practices, business strategies, or cultural norms.
• Values must always stand the test of times.
• If no – ask that should it remain as a core value.
• Eg quality – as a strategy and not a core value
 Core purpose:
• It is the reason for which the organisation
exists.
• Should reflect people’s idealistic motivation
to work
• Purposes should not be confused with goals
and strategies.*pg 68
 Core purposes eg:
• 3M-To solve unsolved problems innovatively
• McKinsey and co . – to help leading corporations
and governments be more successful
• Wal – Mart – To give ordinary folk the chance to
buy the same thing as rich people
• Walt disney – To make people happy.
• We can see purpose cannot be fullfilled it is just a guiding star
which keeps you going .
• Method of getting out core purpose-Five
why’s*pg 70 eg Market Research co.
 Cont:
• Prime role of core purpose is to guide and
inspire
• Maximizing shareholders value cannot be
called a core purpose .
• Get the core purpose by :
– “random corporate killer game”*pg 70
– The Mars group *pg 71
 Discovering core ideology:
• Cannot be set or created but discovered
• Deduce it by looking inside.
• Ideology has to be authentic, you cant fake it.
• Not an intellectual exercise.
• Core ideology is to guide, inspire ,not to
differentiate.
• Core ideology needs to be meaningful inside the
organization but need not be exciting to outsiders.
• Therefore a well articulated ideology can go a
long way for a companies success.
The strong version of the rule is -

“If you find it is not core, - change it”

 ENVISIONED FUTURE :
• Second primary component of vision
framework.
• Consists of two:
– A 10- to- 30 year audacious goal(BHAG)
– Vivid description of what it would be like to
achieve the goal.
 Vision level – BHAG
• BHAG- Big, Hairy, Audacious goals
• Bold mission – to stimulate progress.*pg 73
• BHAG acts as a catalyst for team spirit.
• BHAG engages people , it reaches out , grabs
them. It is tangible,energising,highly focused.
• E.g. NASA *pg 73
• Organization has BHAG at different levels , but
vision requires a special type of BHAG.
• It applies to entire organization- requires 10
– 30 years to complete.
• Setting BHAG requires thinking beyond
current capabilities of the org and current
environment.
 Envisioned Future- BHAG
• It is not a sure bet, but maybe 50-70% chance of
success, requires extraordinary effort and also
luck.

Four Broad Level BHAGs

- Target
- Common Enemy
- Role Model
- Internal Transformation
Envisioned future –vivid description
• A vibrant engaging and specific description of
what it would be like to achieve a B-HAG.
• Translating vision from words into pictures - an
image that people will carry in their heads. Must
evoke a gulp factor.
• Passion - emotion - and conviction are essential
parts of the vivid description
• Picture of what you would like to be / see in the
future
• EG Henry ford *pg 74
 Some important Points:
• Don’t confuse core ideology & envisioned future -
core purpose and B-HAG
• Both have got to be articulated as distinct items.
• Again core purpose – is the reason why an org
exists.While BHAG is a clear articulated goal.
• Core purpose can never be completed while BHAG is
reachable in 10 – 30 years.
• core purpose is the is the star in the horizon to be
chased for, while BHAG is the mountain to be climbed
.once you reach the summit you move on to the next.
• No sense to analyze whether envisioned
future is the right one- no right answer.
• To create envisioned future require certain
level of confidence and commitment.
• Replacing BHAG after achievement.
• Eg NASA – moon
 ALIGNMENT :
• Building is visionary company is still 1%
VISION & 99% ALIGNMENT
• With alignment - even a visitor from
outside can make out what you are.
• Most important work.
• Success depends upon alignment
BUT THE BOTTOM LINE IS :
“To recast our vision or mission into an
effective context for building a visionary
company”
And don’t confuse them with values, goals,
purposes,philosophies,beliefs,practices and
descriptions as they are usually boring
confusing and structurally unsound.
Thank you