CHAPTER TWO

Basic Components of SMGt

2.1. VISION AND MISSION
A) VISION
 Strategic Management activities start
from vision creation for the org/n.
 Managers should understand where
their org/n be in the long run and how
to achieve that.
 In setting vision internal and external
factors need to be assessed. This is to
identify the gap b/n what is and what
will be the firm.
 Vision tells what the org/n wants to be
within time bound.
 It is mental journey.
Eg. ECSU; Vision:
Excellence in public sector capacity
building.
What are the r/ships b/n effective leaders
and vision?
 Purposes of Vision
 Help people to think out of
box( beyond known).
 Provide context for judgment.
 Motivate employees for change and
improvement.
FAILURE OF VISION
Vision can fail for the ff reasons.

 Reflects internal needs of leaders.
 Lack of analysis of internal & external
forces.
 Lack of acceptance by the market and
implementers.
 Failure to accommodate ‘ stake
holders’ need and mismatch of
resources.
b) Mission
 States ‘ purpose of existence’. Specify
the reason why the org/n is established.
It is ‘dream reality’.
 Mission is concise introductions of to
the works of the org/n. It answers the
ff questions.
 Why do we exist ( purpose) .
 Who de we service ( know target).
 What services do we provide & how to
provide.
 Mission is subject to change (not
static).
 Example of Mission Statement  While formulating org/nal mission,
take the ff into consideration.
 Legal freedom and responsibilities.
ECSU’s Mission
 Stakeholders interest who can affect or
 Building the capacity of the public be affected by the org/n.
sector through education, training,  Points in the vision statement should
research, consultancy and
also included in the mission statement.
professional certification services.
Functions:
 Creates Motivation.
 Allocate resources.
 Establish org/nal climate.
 Serves as a base for goals &
objectives translation.
2.2 VALUES AND STRATEGIC ISSUES
Values: Strategic Issues
• Common believes of org/nal members. • are basic policy questions or critical
• Values guide in performing work. challenges that could affect the
mission, vision, values, donors ,
• Values are embodied in ethical themes
such as honesty, integrity, fairness,
finance etc. of the firm. If not solved
respect etc. duly, can lame or paralyze the org/n.
• Every org/n should have these values and
• Identifying strategic issues are
apply by all employees. important: tell on what to focus, render
clues how to solve them, depicts the
Values of ECSU consequences of not addressing them.
 Customer Focus
How to identify strategic
 Commitment
issues?
 Continuous Learning • Org/ns may not aware of the strategic
 Welcoming Diversity issues.
 Attention to the Disadvantaged • They have to be identified by
  conducting SWOT analysis.
STRATEGIC ISSUES…
Strategic issues are 6 to 8 in number and
should be determined based on the ff
criterion.
 Which have the biggest impact
 Which are the most immediate
 Which are closest to the shared
values
2.3. Strategic Goals and Objectives
• Strategic goals are end results the org/n
want to achieve within the strategic
plan period.
• Enables to achieve the mission,
vision , values of the firm.
• Like strategic issues, they are parts of
the strategic planning process.
Strategic goals should:
 Reflect the main ideas of mission, vision,
value.
 Show realities of external business
environment.
 Reflect internal capabilities.
 Reflect strength , weakness, opportunities&
threats stated in your SWOT analysis.
Objectives
 Objectives are specific goals.
 Indicate how the mission can be
achieved
 Represent specific planned levels of
achievement
 Are quantifiable.
 Allow review and appraisal of
achievement
OBJECTIVES CONTINUE..
Objectives make clear:
 What is to be accomplished
 How much is to be accomplished
 By when it is to be accomplished
 By whom it is to be accomplished
• Generally, objectives are SMART.
 S=specificity mean tell what to achieve
 M= measurable mean end result should
be known.
 A= achievable mean feasibility,
consensus & commitment of
stakeholders.
 R= relevance in relation to goals.
 T= time bound.
What is the difference b/n goals &

objectives?
2.4. Strategic Plan
• Are arrangement and ordering of the activities
and tasks that will be necessary to carry out the
goals.
• It involves defining and acquiring resources &
set timeframe to accomplish tasks.
Development of strategic plan involves answering
the ff questions.
 What are the alternatives help to achieve goals?
 What are barriers of these alternatives?
 What methods be used to achieve alternatives
or reduce barriers?
 What specific steps be taken to realize the
methods designed?