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Vision and mission of a company
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Strategic Management: Value Creation, Sustainability, and Performance, 3e, 2014
Strategic Direction: Vision, Mission, ValuesChapter 3
1. How vision and mission statements provide effective strategic direction.
2. Process for developing vision statement.
3. Steps in developing effective mission statement.
4. Techniques for communicating vision and mission.
5. How principles and values can lead to superior performance.
Learning Objectives
Many different departments and functions
Many levels from executives down to workers
Employees desire work to be meaningful
Different perspectives on the company and the market
Differences of opinion throughout the organization
Many ways of approaching the market
Need for Coordination and Coherence
Strategy Planning Hierarchy
Vision What we want the company to
become
Mission How the company competes in the
present
Principles The moral and ethical foundations for
the conduct of the company's business activities (both internal and external)
Guiding Statements
% Using
Mission statement 33Vision statement 18Principles or Values statement 27
MVP – all three statements 5
Practice in Fortune 500 Companies
(Source: West, 2014)
Diversification – many business units
Complexity of developing statements
Often involving entire companyRequires deep understanding,
making choices, and commitment to focus
Indirect connection with performance
Possible Reasons for Low Usage
Incorporate foresightProvides an "event horizon"
Connects with current capabilities
Incorporates enduring values
Is shortIs memorable
Vision StatementImage of
the Future
Continuity with
the Present
Useful
Rubbermaid, 1990 "Aisle of Rubbermaid" in every store
JFK, 1961 "Put a man on the moon and return
him safely to earth"
Jeff Bezos, Cadabra.com, 1994: "Biggest bookstore" in the world
Memorable Visions
1. What do we hold to be true & meaningful, factors that should never change?
2. Why is our work meaningful? 10 years from now, what will we be proud of?
3. What are we particularly good at doing?
4. What compelling changes & opportunities should we seek to take advantage of?
5. Where will we be in 10 years?
Developing the Vision
Captures immediate purpose of the company and its unique way of fulfilling that purpose
Short Simple Company specific Actionable Measurable
Mission Statement
"Guided by relentless focus on our five imperatives, we will constantly strive to implement the critical initiatives required to achieve our vision. In doing this, we will deliver operational excellence in every corner of the Company and meet or exceed our commitments to the many constituencies we serve. All of our long-term strategies and short-term actions will be molded by a set of core values that are shared by each and every associate."
(Grocery Store Chain)
Poor Mission StatementShort ?
Simple ?
CompanySpecific ?
Actionable ?
Measurable ?
Increasingly expected by stakeholders
Usually articulates beliefs of senior management
Challenge is for employees to internalize espoused values
Each principle must be defined & explained
Management must regularly & continuously reinforce the principles, in word and deed
Statement of Principles (Values)
BB&T Principles"10 core values represent our over-arching beliefs. Values provide the context for how we make decisions. Values enable us, as individuals, to live, be successful and achieve happiness. At BB&T, our values enable us to achieve our mission and corporate purpose."
Comprehensive Example
Our VisionTo be the model for physician-led health care in America
Our MissionTo be your Medical Home
Our ValuesAs a physician owned and directed company, we are committed to ensuring that patient care is patient centered, safe, equitable, effective, efficient, and timely