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Building your companys vision
Harvard business reviewcase study 1 (sept-oct 1996)
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We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time .
By T.S . ELIOT
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Developing a vision
One should understand what should never
change and what should be open for change
Success lies in the ability to manage
continuity and change
Possess the discipline to manage change
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How does a vision help Should be understood by everyone
One needs to understand :
Guidelines about what to preserve (present )
What lies in the future
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Vision habits of successful visionary
companies A well conceived vision has two major
components
Core values
Core ideology Envisioned
Core Future
purpose
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Core ideology & Envisioned future
Core ideology defines for what we stand
for and our existence
Envisioned future Is what we aspire to
become , to achieve , to create something
that will require significant change and
progress to attain
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Core Ideology The enduring character
Consistent identity that transcends product /
market life cycles, technology, management fads,
and individual leaders
It is the most lasting and significant contributions
for those who build visionary companies .
Eg HPS Way- H.P.C
ore ideology whichincludes deep respect for individuals, dedication to
affordable quality and reliability, a commitment to
community responsibility. *pg 66
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Cont:
It provides the glue that holds an organization
as it grows , decentralizes , diversifies ,
expands globally and develops workplace
diversity.
Core ideology is further divided :
Core values-- a system of guiding principals
Core purposes-- reason for existence
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Core values
Essential tenets, a small set of timeless guiding
principles, require no external justification,
they are intrinsic. They may have competitive
advantage or may even be a competitive
disadvantage.*pg 68(chart)
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Core values:
Core values are independent of the current
environment ,competitive requirements, or
management fads. The key is not what core values an organization
has but that it has core values at all.
Companies have 3 to 5 core values visionary
companies . Few values can be core that can
seldom change.
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Cont:
Strategy can change - core values do not
change.
Even if the current market does not value ,
find markets, if necessary , to remain true
to it core value.
Who should be involved in articulating the
core values - Mars group
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Identification of core values : Identify what values are truly central
Dont confuse core values with operating
practices, business strategies, or cultural norms.
Values must always stand the test of times.
If no ask that should it remain as a core value.
Eg quality as a strategy and not a core value
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Core purpose:
It is the reason for which the organisation
exists.
Should reflect peoples idealistic motivation
to work
Purposes should not be confused with goals
and strategies.*pg 68
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Core purposes eg:
3M-To solve unsolved problems innovatively
McKinsey and co . to help leading corporations
and governments be more successful Wal Mart To give ordinary folk the chance tobuy the same thing as rich people
Walt disney To make people happy. We can see purpose cannot be fullfilled it is just a guiding star
which keeps you going . Method of getting out core purpose-Five
whys*pg 70 eg Market Research co.
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Cont:
Prime role of core purpose is to guide and
inspire
Maximizing shareholders value cannot be
called a core purpose .
Get the core purpose by :
random corporate killer game*pg 70
The Mars group *pg 71
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Discovering core ideology:
Cannot be set or created but discovered
Deduce it by looking inside.
Ideology has to be authentic, you cant fake it. Not an intellectual exercise.
Core ideology is to guide, inspire ,not todifferentiate.
C
ore ideology needs to be meaningful inside theorganization but need not be exciting to outsiders.
Therefore a well articulated ideology can go along way for a companies success.
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The strong version of the rule is -
If you find it is not core, - change it
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ENVISIONED
FUTURE : Second primary component of vision
framework.
Consists of two:
A 10- to- 30 year audacious goal(BHAG)
Vivid description of what it would be like to
achieve the goal.
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Vision level BHAG BHAG- Big, Hairy, Audacious goals
Bold mission to stimulate progress.*pg 73
BHAG acts as a catalyst for team spirit.
BHAG engages people , it reaches out , grabs
them. It is tangible,energising,highly focused.
E.g. NASA *pg 73 Organization has BHAG at different levels , but
vision requires a special type of BHAG.
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It applies to entire organization- requires 10
30 years to complete.
Setting BHAG requires thinking beyond
current capabilities of the org and current
environment.
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Envisioned Future- BHAG
It is not a sure bet, but maybe 50-70% chance of
success, requires extraordinary effort and also
luck.
Four Broad Level BHAGs
- Target
- Common Enemy
- Role Model
- Internal Transformation
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Envisioned future vivid description A vibrant engaging and specific description of
what it would be like to achieve a B-HAG.
Translating vision from words into pictures - animage that people will carry in their heads. Mustevoke a gulp factor.
Passion - emotion - and conviction are essentialparts of the vivid description
Picture of what you would like to be / see in thefuture
EG Henry ford *pg 74
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Some important Points:
Dont confuse core ideology & envisioned future -
core purpose and B-HAG
Both have got to be articulated as distinct items.
Again core purpose is the reason why an org
exists.While BHAG is a clear articulated goal.
Core purpose can never be completed while
BHAG is reachable in 10 30 years. core purpose is the is the star in the horizon to be
chased for, while BHAG is the mountain to be
climbed .once you reach the summit you move on
to the next.
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No sense to analyze whether envisioned
future is the right one- no right answer.
To create envisioned future require certain
level of confidence and commitment.
Replacing BHAG after achievement.
Eg NASA moon
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ALIGNMENT : Building is visionary company is still 1%
VISION & 99% ALIGNMENT
With alignment - even a visitor from outside
can make out what you are.
Most important work.
Success depends upon alignment
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BUT THE BOTTOM LINE IS :
To recast our vision or mission into an
effective context for building a visionarycompany
And dont confuse them with values, goals,
purposes,philosophies,beliefs,practices anddescriptions as they are usually boringconfusing and structurally unsound.
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Thank you