The Roles of Mission, Vision, and Values
By developing a vision statement, your organization makes the beliefs and governing . Five types of specific strategies can help guide most interventions. This is a guiding light of how to get to the destination. Mission – General statement of how you will achieve the vision. . To help you understand the relationship between each of these statements, examples of strategies, goals, objectives. You're so proud of your new vision statement. Your vision lays out a destination ; your destination guides your strategy; and strategy chooses action. reputation and relationship building, creating the perception of value to the distributors.
Make these values specific, not generic. It takes more than one word to define specificity. Values need to be shared. Some values-driven language may be part of your mission statement. Then, incidentally, that turned out to be good business too. It began with us thinking about what is the right thing to do in a business context.
We said we want to really take care of these people, we want to honor them and we love them as individuals. Now that induces the kind of reciprocal trust and diligent effort that made us successful.
But the motivation was not strategy, it was core values. Vision provides a clear mental picture of what your organization will look like in 5 to 10 years from now.
Forming a strategic vision should provide long-term direction, delineate the organizational activities to be pursued and the capabilities the organization plans to develop, and infuse the organization with a sense of purposeful action. It serves as a unifying focal point for everyone in the organization like a North Star. It delineates the future focus and where the organization is going. Here are two examples of visions or BHAGs that were very lofty at the time they were established: We will put a man on the moon before the end of the decade and bring him back.
JFK A computer on every desk and in every home using great software as an empowering tool. Microsoft An effective vision statement consists of the following elements. Your vision statement may or may not incorporate all of these elements, but keep them in mind when writing or evaluating yours. Provides a picture of what your business will look like in the future. Represents a dream that is beyond what you think is possible.
It represents the mountaintop your organization is striving to reach. Visioning takes you out beyond your present reality.
Clarifies the direction in which your organization needs to move and keeps everyone pushing forward to reach it. Worded in engaging language that inspires and engages people. It creates enthusiasm and poses a challenge that inspires and engages people in the organization.
Capitalizes on Core Competencies: To grow a global portfolio of leading specialty chemical businesses, committed to innovation and the creation of value for our stakeholders. Komen for the Cure: A world without breast cancer. To become the provider of first choice for our community by being a leader in rural healthcare and offering innovative technologically advanced services.
Recording for the Blind and Dyslexic: For all people to have equal access to the printed word. To be the premier Toy Brand—today and tomorrow. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.
One result of a well-developed and executed strategic plan is to develop a unique competitive advantage. Successful organizations deliberately make choices to be unique and different in activities that they are really, really good at and they focus all of their energy in these areas. A sustainable competitive advantage s is the foundation, the cornerstone of your strategic plan.
Successful companies strive to create an advantage that continues to be competitive over time. Throughout the planning process you will need to evaluate every part of your plan to determine whether it supports or detracts from this.
This statement should be no longer than one or two sentences or a couple of bullet points. Keep in mind that you should be able to effectively explain what your company does within 30 seconds—or else you could lose your listener. Your organization exists for a very specific reason and has unique abilities, and most likely its purpose is different than any other company out there.
Companies are founded for reasons as varied as something to do during retirement to making the world a better place. You might consider asking your employees for their perspective as well, when you survey them.
4.3 The Roles of Mission, Vision, and Values
You may be amazed at the insightful comments you receive. Later, when developing your goals, make sure to include goals that nurture and grow your competitive advantage. You should also make sure that your competitive advantage is something that is long-lasting and not easy to duplicate. This difference needs to be obvious to your customers, and it must influence their purchasing decision. Your competitive advantage must be difficult to imitate.
You want to have an advantage that your competition cannot easily duplicate. This might be in the form of people, proprietary knowledge within your organization, or business processes that are behind the scenes. The first two bulleted items above must create activities that can be constantly nurtured and improved upon in order to maintain an edge over the competition. Only firm ever featured by American Funds in its advisory newsletter. The only design team chosen by the top 10 luxury developers in the state.
Provides high-quality emergency, primary care, and retail pharmacy within its area. Staffs the hospital with personnel that have superior knowledge to support efficient operations.
Offers the best care possible by maintaining its full staff of highly-experienced nurses. Creating a product portfolio that lowers the cost of health care.
Could become the best capital markets player in anything that pertains to mortgages. Could become the best at building global brands of daily necessities that require sophisticated manufacturing technology. Could become the best at running a bank focused on the western United States. An organization-wide strategy is like an umbrella. It is a general statement s that guides and covers a set of activities.
The organization implementing this strategy provides superior value to their customers by offering them lowest total cost. Live better Walmart, To reiterate, mission statements are longer than vision statements, often because they convey the organizations core values. Roles Played by Mission and Vision Mission and vision statements play three critical roles: These interdependent, cascading roles, and the relationships among them, are summarized in the figure.
Stakeholders are those key parties who have some influence over the organization or stake in its future. You will learn more about stakeholders and stakeholder analysis later in this chapter; however, for now, suffice it to say that some key stakeholders are employees, customers, investors, suppliers, and institutions such as governments.
Typically, these statements would be widely circulated and discussed often so that their meaning is widely understood, shared, and internalized. Second, mission and vision create a target for strategy development. That is, one criterion of a good strategy is how well it helps the firm achieve its mission and vision.
To better understand the relationship among mission, vision, and strategy, it is sometimes helpful to visualize them collectively as a funnel.
Strategy, Mission, and Vision: How Do They All Fit Together?
At the broadest part of the funnel, you find the inputs into the mission statement. Toward the narrower part of the funnel, you find the vision statement, which has distilled down the mission in a way that it can guide the development of the strategy.
In the narrowest part of the funnel you find the strategy —it is clear and explicit about what the firm will do, and not do, to achieve the vision. Vision statements also provide a bridge between the mission and the strategy. In that sense the best vision statements create a tension and restlessness with regard to the status quo—that is, they should foster a spirit of continuous innovation and improvement. Prahalad describe this tense relationship between vision and strategy as stretch and ambition.
Third, mission and vision provide a high-level guide, and the strategy provides a specific guide, to the goals and objectives showing success or failure of the strategy and satisfaction of the larger set of objectives stated in the mission. In the cases of both Starbucks and Toyota, you would expect to see profitability goals, in addition to metrics on customer and employee satisfaction, and social and environmental responsibility.
Exercises What is a mission statement? What is a vision statement? How are values important to the content of mission and vision statements? Where does the purpose of mission and vision overlap? Why are mission and vision important for organizational goals and objectives? The relationship between mission statements and firm performance: Journal of Management Studies, 35, — A model of the impact of mission statements on firm performance.