StrategistsVisionMission statementOpportunitiesThreatsStrengthsWeaknessGoalsObjectivesStrategies

ValuesBeliefsCulturePolicies

Most responsible for the success or failure of an organization

“Vision refers to the goals that are broadest most general and all-inclusive. A vision describes aspirations for the future without specifying the means necessary to achieve those desired ends”.

Alex Miller

A vision is an image of its desired future

A vision refers to the category of intensions that are board, all inclusive and forward thinking.

A vision describes aspirations for the future without specifying the means that will be used to achieve these desired ends.

In short “ vision is the desired future state

“the most successful consumer package goods company in the world.”

IncludeWhat the organization is to become.Broad and general purpose.

Examples,1 A world class manufacture2 A quality organization3 A provider of so-called legendary service

The visioning process addresses the fundamental question “where do we want to be ?”

This question is relevant toIndividualsOrganizationsNations

“To be a fully developed nation on par with USA and Japan”

Nation’s vision of Malaysia – 2020

Characteristics of visionFuturisticPositiveInspiring and challengingNot a fantasy or a wild dream(It is a dream in action)

AchievableBroad and general

Hemel and Prahalad have suggested five criteria for judging the relevance of the vision.

Foresight – what imagination Breadth – how broad Uniqueness – will it cause our

competitors to be surprised

Consensus Actionability

“A vision becomes tangible as a mission statement. Writing such a statement specifies a leader’s values, beliefs about an organization and the directions in which should move. It can also identify what is unique about the character of the organization”

Gregory G Dess, Miller

A mission statement is a generalized statement of the overriding purpose of an organization. It can be through of as an expression of its reason for exist.

There should be an agreement within the organization or with stakeholders.

ORIGINS OF MISSION STATEMENT Set by senior managers Developed as the result of a

consultation exercises with shareholders, staff, consumers, suppliers and others

Developed by consultants

A mission statement is a generalized statement of the overriding purpose of an organization. It can be through of as an expression of its reason for exist.

There should be an agreement within the organization or with stakeholders.

ORIGINS OF MISSION STATEMENT Set by senior managers Developed as the result of a

consultation exercises with shareholders, staff, consumers, suppliers and others

Developed by consultants

To provide a basis for consistent planning decisions

To assist in translating purpose and direction into objectives suitable for assessments and control

To provide consistent purpose between interest groups connected to the firm

To establish organizational goals and ethics

To improve understanding and support from key groups outside the firm.

What is our reason for being? What is our basics purpose ?

What is unique about our organization? Who are , or who should be our major

customers, clients or key market segments ?

What is our principal goods and services, present and future ?

What are the basic values, aspirations and philosophical priorities of the firm ?

Pierce and David suggest that

Target customers and market Principal products and services Geographical domain Core technologies Concern for survival, growth and

profitability Company philosophy Desire for public image

The 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.

American Red Cross

Mission statement establishes boundaries to guide strategy formulation

Mission statement acknowledges responsibilities to various stakeholders and establishes standards for organizational performance along corresponding dimensions

Mission statement suggested standards of individual behavior.

They are often full of meaningless statements such as the “best” or “Quality” which are open to interpretation and can not be formulated as precise objectives

They can not constrain action because they can easily be written and in any case no one take them seriously

They are commonly not shared by staff and other influential stakeholders.

A mission statement focuses on current business activities -- “who we are and what we do” Current product

and service offerings

Customer needs being served

Technological and business capabilities

A strategic vision concerns a firm’s future business path -- “where we are going” Markets to be

pursued Future

technology-product-customer focus

Kind of company that management is trying to create

These are qualitative statement about what the company likes to achieve.

Examples Customer service, profitability,

innovation etc. The following features help goals to be

effective.

A. Consistency Vertically

Vision

mission

goals

objectives

operating targets

Highest quality, widest distribution and least cost may will be inconsistency.

B. FeasibilityC. UnderstandableD. acceptability

Specific results that an organization seeks to achieve……..

Long-term objectives ……in pursuing its basic mission. Short-term objectives ……in order to achieve its long-term

objectives

SMART objectives Specific Precise and understandable Measurable in order to confirm achievement Agreed with those responsible Realistic achievable Times deadline

Forecast of Value system, powerFuture envi relation within the org.

Analysis of opportunities for and The present threats to the org.Environment mix

of

Analysis of strengths and objec The Org weaknesses

Product Productivity Market Profitability Research and innovation Human resources Financial resources physical resources

Customer services Structural development Social responsibility

Type of goals Responsibility Mission Top management L/R objectives Top management S/R objectives Top management SBU L/R S/R objective SBU management Functional Functional Mgt Sub units Sub units Mgt Individuals individual employees

Opportunities & threats Economic, social, political, demographics,

natural, technological and competitive trends events that could significantly benefit (favorable) or harm (unfavorable) an organization in the future

Strengths & weaknesses Controllable activities within an organization

that are performed especially well or poorly. Policies Guidelines rules and procedures established

for support to implement selected strategy. Policies are rules that are explicitly stated or

implicitly understood Eg. We will not be undersold We will not operate east and north of the Sri

Lanka

We will not question why an item is returned. We will not depend upon outside suppliers for

the most critical components for the assembly of our products.

System of shared values and beliefs that shape a company’s people, organizational structures and control systems to produce behavioral norms Alex Miller

Value What is important Belief How things works Behavioral norms The way we do things around here.

Shared philosophies, expectations, attitudes and norms that knit an organization together

KilmannBasic assumptions and beliefs shared by

organization members.Schein