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STRATEGIC VISION & MISSION

Mohsen Shafiei Nikabadi

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STRATEGIC VISION & MISSIONMISSION STATEMENTS

ENDURING STATEMENTS OF PURPOSE THAT DISTINGUISH ONE ORGANIZATION FROM OTHER SIMILAR FIRMS.

IDENTIFY THE SCOPE OF A FIRM’S OPERATIONS IN PRODUCT AND MARKET TERMS

“MISSION” tends to be concerned with the present…“WHAT IS OUR BUSINESS?”

“VISION” focuses on our future…“WHAT KIND OF BUSINESS ARE WE TRYING TO BECOME?”“WHAT SHOULD OUR BUSINESS BE IN THE FUTURE?”

Questions to Address:1—WHAT NEEDS ARE WE TRYING TO SATISFY?2—WHO DO WE INTEND TO SERVE?3—HOW WILL WE MEET THESE NEEDS?

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VISION/MISSION STATEMENTS TEND TO CONTAIN THE FOLLOWING COMPONENTS…

• PRINCIPAL PRODUCTS AND/OR SERVICES OFFERED

• TARGETED CUSTOMERS AND/OR MARKETS

• GEOGRAPHICAL DOMAIN TO BE SERVED

• THE CORE TECHNOLOGIES THAT WILL BE USED

• A PHILOSOPHICAL STATEMENT OF WHO THE COMPANY IS, AND HOW IT WILL CONDUCT BUSINESS

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BROAD vs NARROW BUSINESS DEFINITIONS

BROAD NARROW

FURNITURE………………………WROUGHT IRON LAWN FURNITURE

FOOTWEAR………………………ATHLETIC FOOTWEAR

BEVERAGES………………………SOFT DRINKS

TRAVEL & TOURISM……...……SHIP CRUISES TO ALASKA

GLOBAL MAIL DELIVERY.……OVERNIGHT PACKAGE DELIVERY

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THREE ASPECTS OF A WELL-CONCEIVED STRATEGIC VISION

1—UNDERSTANDING WHAT BUSINESS A COMPANY IS REALLY IN…

2—COMMUNICATING THE VISION AND MISSION IN WAYS THAT ARE CLEAR, EXCITING, AND INSPIRING…

3—KNOWING WHEN TO ALTER THE COMPANY’S STRATEGIC COURSE AND CHANGE IT’S MISSION…

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EXAMPLES OF MISSION/VISION STATEMENTS

AVISOUR BUSINESS IS RENTING CARS, OUR MISSION IS TOTAL CUSTOMER SATISFACTION.

AMERICAN RED CROSSTHE MISSION OF THE AMERICAN RED CROSS IS TO IMPROVE THE QUALITY OF HUMAN LIFE; TO ENHANCE SELF-RELIANCE AND CONCERN FOR OTHERS; AND TO HELP PEOPLE AVOID, PREPARE FOR, AND COPE WITH EMERGENCIES.

OTIS ELEVATOROUR MISSION IS TO PROVIDE ANY CUSTOMER A MEANS OF MOVING PEOPLE AND THINGS UP, DOWN, AND SIDEWAYS OVER SHORT DISTANCES WITH HIGHER RELIABILITY THAT ANY SIMILAR ENTERPRISE IN THE WORLD.

McDONALDSSERVING A LIMITED MENU OF HOT, TASTY FOOD QUICKLY, IN A CLEAN AND FRIENDLY RESTAURANT, FOR A GOOD VALUE, TO A BROAD BASE OF CUSTOMERS WORLDWIDE

POLAROID (old)PERFECTING AND MARKETING INSTANT PHOTOGRAPHY TO SATISFY THE NEEDS OF MORE AFFLUENT US AND WEST EUROPEAN FAMILIES FOR AFFECTION, FRIENDSHIP, FOND MEMORIES, AND HUMOR.

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MISSION STATEMENTS FOR FUNCTIONAL DEPARTMENTS

HUMAN RESOURCES

The mission of the human resources department is to contribute to organizational success by developing effective leaders, creating high performance teams, and maximizing the potential of individuals.

CLAIMS DEPARTMENT

The mission of the corporate claims department is to minimize the overall cost of liability, workers compensation, and property damage claims through competitive cost containment techniques and loss prevention and control programs.

SECURITY

The mission of corporate security is to provide services for the protection of corporate personnel and assets through preventive measures and investigations.

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DRUCKER’S ORGANIZATIONAL OBJECTIVES

1—MARKET STANDING

2—INNOVATION

3—PRODUCTIVITY

4—PHYSICAL & FINANCIAL RESOURCES

5—PROFITABILITY

6—MANAGERIAL PERFORMANCE & DEVELOPMENT

7—WORKER PERFORMANCE & ATTITUDE

8—PUBLIC & COMMUNITY RESPONSIBILITY

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POSSIBLE CORPORATE OBJECTIVES…

MARKETMARKET SHARE, REPUTATION

PROFITABILITYNET PROFITS, ROA, ROE, EPS

EFFICIENCYLOW COSTS, REDUCED WASTE, LESS IDLE TIME

GROWTHINCREASED UNIT SALES, INCREASED ASSETS

CUSTOMER SATISFACTIONQUALITY, SERVICE, RESPONSIVENESS

EMPLOYEE WELL-BEINGABOVE-AVERAGE WAGES, JOB SECURITY

SOCIAL RESPONSIBILTIYETHICAL BEHAVIOR, CHARITABLE DONATIONS, COMMUNITY SUPPORT

SURVIVALAVOID BANKRUPTCY, KEEP OPERATIONS GOING

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FINANCIAL vs STRATEGIC MARKET OBJECTIVES

FINANCIAL STRATEGIC MARKET

REVENUE GROWTH MARKET SHARE

EARNINGS GROWTH INDUSTRY RANK

PROFIT MARGINS QUALITY IMAGE

DIVIDENDS BREADTH OF PRODUCT LINE

BOND OR CREDIT RATINGS CUSTOMER SATISFACTION

CASH FLOWS CUSTOMER SERVICE

STOCK PRICES INNOVATION

EARNINGS STABILITY INTERNATIONAL EXPANSION

DIVERSIFIED REVENUE BASE

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OBJECTIVES SHOULD…

1—RELATE TO A SINGLE, SPECIFIC TOPIC OR AREA

2—ACT AS GUIDELINES TO INDICATE WHAT NEEDS TO BE ACCOMPLISHED

3—FOCUS ON RESULTS TO BE ACHIEVED, NOT ACTIVITIES TO BE PERFORMED

4—BE CLEAR AND MEASURABLE

5—HAVE A SPECIFIC TIME DEADLINE

6—BE CHALLENGING, BUT ACHIEVABLE (MOTIVATING)

7—ACT AS PERFORMANCE STANDARDS WHICH CAN BE USED TO ASSESS ORGANIZATIONAL PROGRESS AND EFFECTIVENESS

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EXAMPLES OF POOR OBJECTIVES

OUR OBJECTIVE IS TO…

• MINIMIZE COSTS AND MAXIMIZE PROFITS

• INCREASE SALES REVENUES AND UNIT VOLUME

• BOOST ADVERTISING BY 15 %

• BE A PIONEER IN RESEARCH AND DEVELOPMENT

• BE THE MOST PROFITABLE FIRM IN THE INDUSTRY

• EXPAND OUR SALESFORCE INTO NEW TERRITORIES

• INCREASE OUR MARKET SHARE IN MEXICO BY 10%

AVOID GENERALITIES, BE SPECIFIC

STATE IN QUANTIFIABLE OR MEASURABLE TERMS

ESTABLISH A DEADLINE FOR ACHIEVEMENT

YOU CANNOT MANAGE WHAT YOU CANNOT MEASURE!

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EVALUATION OF CORPORATE OBJECTIVES AND STRATEGIES

SCAN THE ANNUAL STOCKHOLDER REPORTS…

GO BACK 2-3 YEARS AND NOTE WHAT PROMISES WERE MADE IN THE ANNUAL MEETINGS AND STOCKHOLDER REPORTS

ARE SPECIFIC PROMISES MADE TO THE STOCKHOLDERS?

ARE SOME OF THESE PROMISES QUANTIFIABLE & EASILY MEASURED? (OBJECTIVES)

ARE SOME OF THEM ACTION PLANS OR STRATEGIC STEPS THEY INTEND TO TAKE? (STRATEGIES)

SEPARATE THESE PROMISES INTO THREE CATEGORIES: FINANCIAL OBJECTIVES, MARKET OBJECTIVES, & SSTRATEGIES

NOW REVIEW THE MOST RECENT STATEMENTS & REPORTS

DID THE STRATEGIES WORK WELL? SHOULD THEY BE REVISED?

WERE THE OBJECTIVES ACHIEVED? DO WE NEED TO CHANGE THEM?