The Business Vision and Mission

By
Narayan Pradhan

quote 1
“The very essence of leadership is that you have
to have vision. You can’t blow an uncertain
trumpet.”
THEODORE HESBURGH

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 What Do We Want to Become?
• A vision statement should answer the above
question.
• A clear vision provides the foundation for
developing a comprehensive mission
statement.
• The vision statement should be short,
preferably one sentence, and as many
managers as possible should have input into
developing the statement.

Ex 1 3
 Exercise 1
• Review vision statement examples.

mission 4
 What is Our Business?
• Drucker says that asking the question “What
is our business ?” is synonymous with asking
the question “What is our mission?”
• An enduring statement of purpose that
distinguishes one organization from other
similar enterprises, the mission statement is a
declaration of an organization’s “reason for
being.”

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 Mission Statement
• It answers the pivotal question “What is our
business?”
• A clear mission statement is essential for
effectively establishing objectives and
formulating strategies.
• A mission statement reveals what an
organization wants to be and whom it wants
to serve.

Ex 2 6
 Exercise 2
• Review mission statement examples.

process 7
 The Process of Developing Vision &
Mission Statements
1. Select several articles about these statements and ask
all managers to read these as background
statements.
2. Ask managers themselves to prepare a vision and
mission statement for the organization.
3. A facilitator or a committee of top managers, should
merge these statements into a single document and
distribute the draft statement to all managers.
4. A request for modification, additions, and deletions is
needed next, along with a meeting to revise the
document.

importance 8
 Importance of Vision & Mission
Statements
• To ensure unanimity of purpose within the
organization.
• To provide a basis, or standard, for allocating
organizational resources.
• To establish a general tone or organizational climate.
• To serve as a focal point for individuals to identify with
the organization’s purpose and direction.
• To specify organizational purposes and translate these
purposes into objectives.
• To facilitate the translation of objectives into work
structure.

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• Divergent views among managers can be
revealed and resolved through the process.
• Too often, strategists develop vision and
business mission statements only when
organization is in trouble.
• According to Drucker, the important time to
ask seriously , “What do we want to
become?” and “What is our business?” is
when a company has been successful.

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• An organization that fails to develop a vision
statement as well as a comprehensive and
inspiring mission statement looses the
opportunity to present itself favorably to
existing and potential stakeholders.
• The vision and mission statements are
effective vehicles for communicating with
important external and internal stakeholders.

characteristics 11
Characteristics of a Mission Statement
• A Declaration of Attitude
• A Customer Orientation
• A Declaration of Social Policy

Declaration of attitude 12
 A Declaration of Attitude
• A good mission statement allows for the
generation and consideration of a range of
feasible alternative objectives and strategies
without unduly stifling management
creativity.
• A mission statement needs to be broad to
effectively reconcile differences among, and
appeal to, an organization’s diverse stake
holders.

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• An effective mission statement should not be too
lengthy.
• It should arouse positive feelings and emotion
about an organization.
• It should be inspiring in the sense that it
motivates readers to action.
• A mission statement should be enduring.
• An effective mission statement generates the
impression that a firm is successful, has direction,
and is worthy of time, support and investment-
from all socio- economic groups of people.
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• A mission statement reflects judgments about
future growth directions and strategies that
are based upon forward – looking external
and internal analyses.
• The statement of mission should be dynamic
in orientation, allowing judgments about the
most promising growth directions and those
considered less promising.

A customer orientation
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 A Customer Orientation
• A good mission statement reflects the
anticipation of customers.
• Rather than developing a product and trying
to find a market, the operating philosophy of
organizations should be to identify customers’
needs and then provide a product or service
to fulfill those needs.

examples 16
 Examples
• Do not offer clothes. Offer me attractive looks.
• Do not offer me shoes. Offer me comfort for my
feet and the pleasure of walking.
• Do not offer me a house. Offer me security,
comfort, and a place that is clean and happy.
• Do not offer me books. Offer me hours of
pleasure and the benefit of knowledge.
• Do not offer me things. Offer me ideas, emotions,
ambience, feelings and benefits.
• Please, do not offer me THINGS.

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• What the customer buys and considers value
is never a product.
• It is always utility, meaning what a product or
service does for him or her.
• The customer is the foundation of a business
and keeps it in existence.

A declaration of social policy 18

 A Declaration of Social Policy
• Another characteristic of mission statement is
that they should reveal that the firm is socially
responsible.
• The term social policy embraces managerial
philosophy and thinking at the highest levels
of an organization.
• The impact of society on business and vice-
versa is becoming more pronounced each
year.

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• Social policies directly affect a firms
customers, products and services, markets,
technology, profitability, self-concept and
public image.
• An organization’s social policy should be
integrated into all strategic-management
activities , including the development of a
mission statement.

Mission statements components 20

 Mission Statement Components
1. Customers
2. Products or services
3. Markets
4. Technology
5. Concern for survival, growth, and profitability.
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

Experiential exercise 21
Experiential Exercise 2A
Evaluating Mission Statement

conclusion 22
 Conclusion
• Every organization has a unique purpose and
reason for being.
• This uniqueness should be reflected in vision
and mission statement.
• Drucker says that developing a clear business
vision and mission is the “ first responsibility
of strategists.”

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• A good mission statement reveals an
organizations customers; products or services;
markets; technology; concern for survival,
growth, and profitability; philosophy; self-
concept; concern for public image; and
concern for employees.
• Well designed vision and mission statements
are essential for formulating, implementing,
and evaluating strategies.

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