establishing strategic intent
DESCRIPTION
ESTABLISHING STRATEGIC INTENTVISION,MISSION,OBJECTIVES AND GOALLEVELS OF STRATEGIC INTENTVISION MISSION OBJECTIVES PLANS POLICIES GOALS STRATEGIES AND TACTICS³A strategist¶s job is to see the company not as it is«but as it can become ³ John W Teets³A business is not defined by its name, status, or incorporation. It is defined by the business mission. Only a clear definition of the mission and purpose of the organization makes possible clear and realistic business Objectives´ Peter DrTRANSCRIPT
ESTABLISHING STRATEGIC INTENT
VISION,MISSION,OBJECTIVES AND GOAL
LEVELS OF STRATEGIC INTENT
VISION
MISSION
OBJECTIVES
PLANS
POLICIES
GOALS
STRATEGIES AND TACTICS
“A strategist’s job is to see the company not as it is …but as it can become “
John W Teets
“A business is not defined by its name, status, or incorporation.
It is defined by the business mission. Only a clear definition of the mission
and purpose of the organization makes possible clear and realistic business
Objectives”
Peter Drucker
VISION
VISION IS A DREAM
VISION IS A DREAM WITH A DEADLINE
IT IS A PICTURE OF FUTURE THAT PULLS US INTO THE FUTURE
A VISION STATEMENT IS AN ATTEMPT TO CAPTURE THAT DREAM IN WORDS
WHEN ASKED, WHAT WOULD BE WORSE THAN BEING BLIND, HELEN KELLER REPLIED :
“IT WOULD BE DEFINITELY WORSE TO HAVE 20/20 EYESIGHT AND NO VISION, THAN TO BE BLIND, BUT HAVE THAT VISION.”
VISION
A VISION STATEMENT TELLS US WHERE WE ARE GOING.
VISION STATEMENT, TO BE WORTH ANYTHING, HAVE TO DIFFERENTIATE OUR COMPANY FROM THE COMPETITION.
OUR VISION MUST CONNECT WITH THE HEARTS AND DREAMS OF OUR PEOPLE.
VISION
FROM AN ORGANIZATIONAL PERSPECTIVE, VISION HAS TO HAVE FIVE COMPONENTS :
A SENSE OF WORTHINESS.
AN ABILITY TO INSPIRE.
AN INVITATION TO SHARE.
CLEAR AND UNDERSTANDABLE DETAIL.
ACHIEVABILITY.
CORE IDEOLOGIES IN THE VISIONARY COMPANIES
IBM
Cont ...
GIVE FULL CONSIDERATION TO THE INDIVIDUAL EMPLOYEE.
SPEND A LOT OF TIME MAKING CUSTOMERS HAPPY.
GO THE LAST MILE TO DO THINGS RIGHT, SEEK SUPERIORITY IN ALL WE UNDERTAKE.
CORE IDEOLOGIES IN THE VISIONARY COMPANIES
JOHNSON & JOHNSON
Cont ...
THE COMPANY EXISTS “TO ALLEVIATE PAIN AND DECEASE.”
“WE HAVE A HIERARCHY OF RESPONSIBILITIES; CUSTOMERS FIRST, EMPLOYEES SECOND, SOCIETY AT LARGE, THIRD AND SHAREHOLDERS FOURTH.” INDIVIDUAL OPPORTUNITY AND
REWARD BASED ON MERIT.
DECENTRALIZATION = CREATIVITY + PRODUCTIVITY.
CORE IDEOLOGIES IN THE VISIONARY COMPANIES
BOEING
Cont ...
BEING ON THE LEADING EDGE OF AERONAUTICS; BEING PIONEERS.
TAKING HUGE CHALLENGES AND RISKS.
PRODUCT SAFETY AND QUALITY.
INTEGRITY AND ETHICAL BUSINESS.
TO “EAT, BREATHE AND SLEEP THE WORLD OF AERONAUTICS.”
Vision & mission
Vision is what the firm wants to be in future. such a view is often made explicit in a VISION statement of the company. a vision statement gives aspiration and motivation besides guiding the formulation of strategy.
Hamel and Prahalad , term it as strategic intent. Examples:
• To put a man on the moon by the end of the decade– Apollo program.
• Our vision is to dominate the global food service industry– McDonald.
• Project infinity – Coca Cola
Mission
• Mission statement contains the ultimate purpose of the firm. It also is the vision of the founders.
• The corporate mission is an expression of the growth ambition of the firm.
• It is the firms future visualized.
MISSION
A CLEAR AND COMPELLING STATEMENT THAT SERVES TO UNIFY EFFORTS OF AN ORGANISATION.
IT MUST STRETCH AND CHALLENGE THE ORGANIZATION AND YET BE ACHIEVABLE.
IT MUST TRANSLATE ABSTRACTNESS OF PHILOSOPHY INTO TANGIBLE, ENERGISING AND FOCUSED GOAL THAT DRAWS THE ORGANISATION FORWARD.
MISSION
MISSION STATEMENT MUST ANSWER FOLLOWING QUESTIONS
WHAT IS OUR REASON FOR BEING?
WHAT IS OUR BASIS PURPOSE?
WHAT BUSINESS ARE WE IN?
WHAT IS UNIQUE OR DISTINCTIVE ABOUTOUR ORGANISATION?
WHAT DO WE STAND FOR?
MISSION ELEMENTS
TRUSTWORTHY.
QUALITY.
FAIR DEALINGS.
CONTRIBUTION TO THE SOCIETY.
Components of mission
Customers
Product &service
Market
Technology
Concern for survival, growth, profit
Philosophy
Self concept
Contd..
Concern for public image
Concern for employees
Mission statement
Pepsi Co’s mission is to increase the value of our share holders investment. we do this through sales growth, cost controls and wisest investment resources. we believe our commercial success depends upon offering quality and value to our consumers &customers ;providing product that are safe, wholesome economically efficient ,adhering to the highest standards of integrity
Mission statement
Dell computer’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of highest quality; leading technology;comptt pricing; individual and company accountability, best in class service and support; flexible customization capability; superior corporate citizenship; financial stability
Role of mission in strategy formulation
Helps in deciding strategic actions
Helps in clarifying aspirations
Integrating with environment
Conveys clear message to outside world
J.R.D. TATA’S MISSION STATEMENT
STRIVE FOR PERFECTION AND YOU WILL REACH EXCELLENCE.
NO SUCCESS OR ACHIEVEMENT IN MATERIAL TERMS IS WORTHWHILE, UNLESS IT SERVES THE NEEDS OR INTEREST OF THE COUNTRY AND ITS PEOPLE AND IS ACHIEVED BY FAIR AND HONEST MEANS.
GOOD HUMAN RELATIONS NOT ONLY BRING GREAT PERSONAL REWARDS, BUT ARE ESSENTIAL TO THE SUCCESS OF ANY ORGANISATION.
How does mission helps the firm
Lends directionGives focusObjectives , targets and programs are formulated based on mission.Helps people at various levels in the corporation understand in what direction they should move.Guiding the action at all levels.Helps prevent people falling into an activity trap.
A few mission statements
• The mission of our company, is to make cleanliness commonplace, to lesson work for women, to foster health, and to contribute to personal attractiveness that life may be more enjoyable for the people who use our products.--- Unilever
• To preserve and improve human life---Merck• To help business corporations and governments to
more successful.—McKinsey & Co.• To become a major player in the global chemical
business and simultaneously grow in other growth industries like infrastructure ---RIL
• To become a $ 1 billion research based global pharmaceutical company --- Ranbaxy
Mission change only
In change in core business
Crisis situation
Change in demand from coalition group
Change in normal life cycle of the enterprise
Values & beliefs
• Organizational values are a major constituent of mission. It is values that hold the mission in tact. It is the shared values that holds a firm together. Values proclaim the qualities it will cherish and what it will give to and expect from its people and society.
• The firms beliefs can also be found in the mission statement.
Establish organizational direction
Establishing an organizational direction for the company involves determining two indicators:• Organizational mission – the reason why the
organization exists
• Objectives – measurable targets to track the growth of the business
OBJECTIVES
There are 2 types of objectives long run and the short run
Long run objectives specify the results that are desired in pursuing the organization's mission and normally extend beyond the current financial year of the organization
Guidelines in formulating the Objectives
Involvement of all the employees responsible for carrying out
Reachable
Realistic
Contemporary & innovative
Not too many objectives
Ranked according to the priority
Contd..
balanced
Importance of the objectives
Define the organization
Co-ordinates decision making
Formulating strategies
Standards to assessing org. performance
Tangibles the mission
Reflect the change in the env.
Key objective areas
Market standingInnovationProductivityResource levelsProfitabilityManager performance and developmentWorker performance and attitudeSocial responsibility
Types of objectives
Profitability
Growth
Market share
Social responsibility
Employee welfare
Product Quality
Service
R&D
Diversification
Efficiency
Financial stability
Resource conservation
Mgt & labor development
How long term objectives are formulated
Environment analysisDeveloping and formulating vision and missionDeveloping organisational objectives a) formulating general obj.
• B) obj in written form• Formulating specific obj• Ranking the specific obj
Formulation of objectives (W.F.Glueck)
ForcesIn environment
Values of top mgmt
Past History of firm
InternalResources and
power
Set of future obj
To quote Akio Marita, Sony's visionary leader "our plans is to lead the public with new products, rather than ask them what kind of products they want; hence we create a products and then create a market by educating and communicating to the public about the product".
The "Walkman", music system is the best example of the mission of Sony, as seen of reality in action.
Stated below are the Vision statements of some highly focused and successful organisations-
SIEMENS: Where technology touches livesDU PONT: Better things for better living through ChemistryHYUNDAI: Building a better world through innovative technologyNOKIA: Connecting peopleXEROX: The document companyIBM: Solutions for a small planetPHILIPS: Let's make things betterBPL: Believe in the best
BUSINESS DEFINITION
A business definition is a clear cut statement of the business ,the firm is engaged in or is planning to pursue. It is an elaboration of the business arena it will play in . It prescribes the boundaries of the firm’s business
WHAT PURPOSE DOES A BUSINESS DEFINATION SERVE
CLARIFIES WHERE TO LOOK FOR OPPORTUNITIES
PROVIDES THE BLUE PRINT FOR PRODUCT MARKET STRATEGY
SOME BUSINESS DEFINATION
INTEL- “ We are in the business of computing technology and to consistently develop the artifice/ building blocks of computing technology for the entire computer industry of the world is our business”
Contd..
FORD- “we are in the business of automotive and auto related products and services”
ATTRIBUTES OF GOOD BUSINESS DEFINATION
Related to basic human need
Functions performed by the product
Basic benefits
Go beyond immediate product
Wide enough to embrace new opportunities
Give vision of latent comptt