Post on 05-Apr-2018
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BuilDing Companys
Vision
Presented by :Abhishek Rai ( 11Ex-002)PGDM (Executive)
2011-12
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Vision : Why & what
Vision provides guidance about what core topreserve and what future to stimulate
progress toward.
Core
Ideology
Envisioned
future
Vision
Vision :Why & what
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Vision :Yin-Yang
Core Ideology
What we stand for
Why we exist
Envisioned Future
What we aspire to become, to
achieve, to create
Something that will requiresignificant change and progress to
attain.
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Core Ideology
Core
Ideology
ConsistentIdentity
TechnologicalBreakthrough
Managementfads
Leaders
Core ideology provides the glue thatholds an organization together as itgrows, decentralizes, diversifies,expands globally and developsworkplace diversity.
Core IdeologyIt defines the enduring character of organization
Core
Values
Core
Purpose
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Core Values
Mostly visionary company have three to five core values.How to find core Values ?
Ask relentlessly and honestly what values are truly central.
Ask about each one , if the circumstances changed and penalized us for
holding this core value, would we still keep it.
A company should not change its core values in respect to marketchanges ; rather it should change markets, if necessary, to remain true to
its core values.
Who should be involved in articulating the core values ?
Mars Group : A representative slice of companys genetic code.
Individual Organization
If you awoke tomorrow with enough money to retire , would you continue to
work with core values ?
Can you envision them being as valid for you 100 years from now ?
Will you hold them even if they become competitive disadvantage ?
Intrinsic values Belief of organization Timeless guiding principles
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Reason forbeing
Soul oforganization
InspirationGuiding star of horizon-forever pursued , never
reached
Core Purpose
Core purpose is reason for someone's existence not a goal or business
strategy.
For Mckinsey & Company, purpose is not to do management consultancy buthelp corporate and governments to be more successful.
Method of getting a purpose
Five Whys i.e. Why it is important ? Five time. After a few why, you will
come down to fundamental purpose of organization.
Can Maximizing shareholders wealth be purpose ?
Not possible as it cannot inspire people at all level of organization.
Mars Group
How could we frame the purpose of firm, so that if you work up tomorrow
morning with enough to retire, you would nevertheless keep working here.
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How ? By looking Inside. Core Ideology is to guide and inspire not to differentiate.
The authenticity, the discipline and the consistency with which the ideology
is lived not- not the content of ideology- differentiate visionary companies
from the rest of the pack.
Discovering Core Ideology
( You do not create or set it, you discover it)
Core ideology needs to be meaningful and inspirational only to the peopleinside the organization, it need not be exciting to outsider.
A clear ideology attracts people with compatible core values and repels
others.
A company can have a strong core ideology without a formal statement.
Dont confuse core ideology with core competency.
Core competency defines capabilities whereas Core ideology captures what
you stand for and why you exist.
Core competency change over decades but core ideology does not.
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10 to 30 years
audacious goal
What it will be like to
achieve the goalEnvisioned Future
Envisioned Future
How ? By looking Inside.
Core Ideology is to guide and inspire not to differentiate.
The authenticity, the discipline and the consistency with which the ideology
is lived not- not the content of ideology- differentiate visionary companies
from the rest of the pack.
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Visionary companies often use goals as Climbing Mount Everest, to stimulate
progress & commitment to a huge-daunting challenge. A true BHAG is :
Clear and compelling
Serves as unifying focal point of effort
Acts as catalyst of team spirit
Has clear finish line
Vision Level BHAG ( Big, Hairy, Audacious Goals)
Become a $ 125 billion company by the year 2000- [ Wal-Mart, 1990]
A BHAG should not be a sure bet- it will have perhaps only a 50% to 70%
probability of success but the organization must believe that it can reach the goal
anyways BHAG : Four Categories-
1. Target BHAGs
2. Common enemy BHAGsWe will destroy Yamaha- [Honda 1970s]
3. Role-model BHAGsBecome Harvard of the west- [Stanford University, 1940s]
4. Internal Transformation BHAGs- Transform this company from defense contractor tobest diversified company in world [Rockwell, 1995]
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What is Vivid description ?
Vibrant , engaging, and specific description of what it is like toachieve BHAG
In 1930s Merck has the BHAG to transform itself from a chemical manufacturerinto one of the preeminent drug-making companies of the world
Passion, emotion and conviction are essential parts of the vivid description.
Vivid Description
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Envisioned future: Key points
Dont confuse core purpose with envisioned future as core purpose can never be
completed whereas the BHAG is reachable in 10 to 30 years.
Did Shakespeare created the right Hamlet ?
It makes no sense to analyze whether the envisioned future is the right one. It is
not prediction but creation and with a creation there can be no right answer.
What about failure to realize the envisioned future ?
Visionary companies set audacious goal but they still achieve them even without
larger than life leaders at helm.
Success lies in process of lets try a lot of stuff and keep what works than by well
defined strategy.
It is about building strength of organization as primary way of creating future.
We have arrived syndrome
It is a complacent lethargy that arises once an organization achieves a BHAG and
fails to replace it with another.
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Building a visionary company requires 1% visionand 99 % alignment and for creating alignment
first step will always be recasting VISION.
Thank you