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
 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
If internal 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?

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 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 01/01/23

 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).

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 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).

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 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.

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 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).

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 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 01/01/23
 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 intentions Objectives are precise

Goals are abstract Objectives are concrete.

Goals are generally difficult to Objectives are measurable

measure
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
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