Differences Between Strategic Vision and Mission

Statement

Vision Mission

Chief concern: Chief Concern”

“Where we are going” “Who we are and what we do”

Covers future business scope Present business scope oriented

 Developing Strategic Vision

 The Three elements of Strategic Vision

a) The mission statement

b) From Mission statement to Strategic Vision
c) Communicating the strategic vision
 Profit is an objective and a result of what company does – hence the desire to m
profit does not tell anything about the business arena in which profit are to be sou
Developing Strategic Vision

i. The mission is not to make a profit

 TheIncorporating
ii. Three elements
what, whoof Strategic
and how into theVision
mission statement
iii. A broad or narrow Business definition and Mission
iv. Mission statement for functional departments

a) The mission statement

Missions based on profit does not distinguish one type of co from other
either
b) From Mission statement to Strategic Vision
c) Communicating the strategic vision
 Developing Strategic Vision

i. The mission is not to make a profit

 TheIncorporating
ii. Three elements
what, whoof Strategic
and how into theVision
mission statement
iii. A broad or narrow Business definition and Mission
iv. Mission statement for functional departments

a) The What
mission statement
customer need, which customer group to be satisfied
And how the co is planning to create and deliver VALUE to
customers in satisfying their need
b) From Mission statement to Strategic Vision
c) Communicating the strategic vision
 Developing Strategic
•To incorporate what whoVision
how, the mission statement must be
specific enough.
•Broad or narrow definitions are relative to a co’s business
i. The mission is not to make a profit
focus and intent
 TheIncorporating
ii. Three elements
what, whoof Strategic
and how into theVision
mission statement
iii. A broad or narrow Business definition and Mission
iv. Mission statement for functional departments

a) The mission statement

•Key functions and departments within a business can also
b) From Mission statement to Strategic
have Vision
c) Communicating the strategic vision
 Developing Strategic Vision

•A mission highlights the boundaries, who, what how and …a logical vantage
point
 to look down to what co should do now and
The Three elements of Strategic Vision
•Logically strategic vision should tell what co should do fiver years from now
•A series of questions help managers to draw a strategic vision for co

a) The mission statement

b) From Mission statement to Strategic Vision
c) Communicating the strategic vision
 Developing Strategic Vision
•A mission highlights the boundaries, who, what how and …a logical vantage
point to look down to what co should do now and
•Logically strategic vision should tell what co should do fiver years from now
 The Three elements of Strategic Vision
•A series of questions help managers to draw a strategic vision for co

•Answer the following questions:

• What changes are occurring in the mkt?
• What The
a) new mission
or different statement
customer needs should we be moving to satisfy?
• What new or different buyer segment should we be concentrating on?
b)new
• What From Mission
geographic or pdtstatement
mkt should to
we Strategic
be pursuing?Vision
• What should be co;’s business makeup look like in five years?
c) Communicating the strategic vision
• What kind of co should we be trying to become?
•Entrepreneurs need to be visionary
 Developing Strategic Vision
•Breaking down resistance to a new strategic vision

 The Three
•Putting elements
the Vision of Strategic
statement in WritingVision

•The real pay-offs of a well-conceived, well-worded

a) The mission statement
vision
b) From Mission statement to Strategic Vision
c) Communicating the strategic vision
 •Breaking down
Developing resistance
Strategic to a new strategic vision
Vision
•Putting the Vision statement in Writing
 The
•The Three elements
real pay-offs of Strategic well-worded
of a well-conceived, Vision
vision
a) The mission statement
b) From Mission statement to Strategic Vision
Real c) Communicating
pay off are: the strategic vision
i) It crystallizes senior executives own views about the firm’s long-term directions
ii) it Reduces the risk of rudderless decision making.
iii) It conveys org purposes in ways that motivates org members to go all out
iv) It provides a beacon that lower-level managers can use to form departmental mission
v) It help org to prepare for future.
Task 2: Setting Objectives
 Establishing Objectives
Objectives must be quantifiable,
measurable, specific and contain
1. What kind of objectives to set deadline for achievement

› Strategic objectives vs Financial

objectives: Which take precedence? A co exhibits strategic intent
when it relentlessly pursues an
2. The Concept of Strategic intent ambitious strategic objective,
concentrating on the full force of
its resources and competitive
3. The need for Long Range and actions on achieving that
Short range objectives objectives

4. How much stretch should

objectives entail?
5. Objectives are needed at all
Organizational level
Task 3: Crafting A Strategy
 Task 3: Crafting A Strategy

Strategy development entails

addressing a series of questions: Task of Entrepreneur is to

 How to attract and please

customers
 How to compete against rivals
 How to position the co in the •choose among the various strategic
market place alternatives
 How best to respond •In proactively searching for
to
opportunities to do new things or add
changing economic and market new values to existing one
conditions
 How to capitalize on attractive
opportunities to grow the
business Masterful strategies come from
 How to achieve the co’s doing things differently from
competitors
performance targets
 Crafting Strategy contd…..

 A Co’s Strategy- making Hierarchy

› Crafting strategy involves four distinct types of
strategic actions:
 Corporate Strategy
 Business-Level strategy
In a single business co,
 Functional-area strategy the upper most level of
strategy making
 Operating strategy hierarchy is the business
level strategy
 Crafting Strategy contd…..

•For the set of business as a

Developed
by the CEO whole
& other Corporate •Set for managing businesses in
senior Strategy a diversified and muti-business
executives co
•Concerns how to boost the
combined performance of the
set businesses
•Addresses the question – what
business to hold or divest,
which new mkt to enter and
how to enter
 Crafting Strategy contd…..

Developed by the
•Is concerned with building
GM of each co’s
CA in a single business unit
different line of
business often
Business of a diversified co or in a
Level non-diversified single
with advice from
Strategy business co
more senior
exec. And the
heads of
functional area
 Crafting Strategy contd…..

•Developed by the •Is concerned with actions

heads of major and approaches employed
functional Functional in managing particular
activities within a Level functions within a business
particular business Strategy •Addresses questions like –
•Often with how to manage a particular
collaboration with activity in ways that support
other key people the business level strategy
 Crafting Strategy contd…..

•Is concerned with

Developed by the
relatively narrow strategic
brand managers,
the operating
Operational initiatives
managers of the Level •Approaches for managing
plants Strategy key operating units (plants,
distribution distribution center,
center materials)
 Crafting Strategy contd…..

 Using the Strategy- Making Hierarchy

› The strategy hierarchy should be cohesive and mutually reinforcing –
fitting together
› It is the responsibility of the top executive to achieve this duty
 By clearly communicating the co’s vision, objectives and major
strategy components to the down-the-line managers and key
personnel.
› once strategy and down the hierarchy have been created, lower-level
strategies must be scrutinized consistency and support of higher level
strategy.
› Any strategy conflict must be addressed and resolved either by
modifying the lower level strategies with conflicting elements by
adapting the higher level strategy to accommodate what may be more
appealing strategy ideas bubbling up from below
 Crafting Strategy contd…..

 A strategic Vision+Objectives+Strategy =
Strategic Plan
› A co’s strategic plan lays out its future direction and business purpose,
performance, targets and strategy
› It includes a commitment to allocate resources to the plan and
specifies a time period for achieving goals
› Regular review is necessary
› Strategic plan ends up with written document that is circulated to most
managers
Task 4: Executing the Strategy
Task 4: Executing Strategy
› Managing and implementing strategy – most demanding and
time consuming
› Converting strategic plan into action and results – requires
managerial skill to provide direction, motivation of people
who will be executing, create a climate for strategic
implementation
› Managerial action agenda for executing strategy emerges
from What co needs to do to achieve targeted financial
performance
› The agenda usually involves some aspects like:
 Staffing the org
 Developing and strengthening strategy –supporting resources and
capabilities
Task 4: Executing Strategy contd…………..
 Creating a strategy-supporting structure
 Allocating ample R to the activities critical to strategic success
 Ensuring the political procedure facilitate effective strategic
execution
 Organizing the work effort along the lines of the best practice
 Installing information and operating systems that enable co
personnel to perform essential activities a
 Motivating people and tying rewards tightly
 Exerting the internal leadership needed to propel implementation
forward
Task 5:Executing The Strategy
Task 5: Evaluating Performance and Initiating Corrective
Adjustments

› It asks to monitor the new external developments,

evaluating co’s progress and making corrective
adjustments
› A best strategy can turn worst tomorrow - a approach to
strategy execution are never final – managing strategy is
an ongoing process.

END