Description
It gives examples of Intel's vision, nike, Heinz, GE, Infosys, wipro, bharti and NTPC. It differentiates between strategic vision and mission. It gives mission statement of ONBC, NIRMA. It also highlights the what are core values of an organization with the help of examples from SAIL, IOCL, Enron.
VISION, MISSION, VALUES
and STRATEGIC INTENT
“If you don’t know where you are going, any road will take you there.?
The Koran
“Management’s job is not to see the
company as it is . . .
but as it can become.?
John W. Teets
Developing a Strategic Vision
?
Involves thinking strategically about
? ?
Future direction of company Changes in company’s product-marketcustomer-technology to improve
• Current market position
• Future prospects
A strategic vision is a road map showing the route a company intends to take in developing and strengthening its business. It paints a picture of a company’s destination and provides a rationale for going there.
Key Elements of Strategic Vision
Delineates management’s aspirations for the business – ? Charts a strategic path for the future “Where are we going?” ? Steers energies of employees in a common direction ? Molds organizational identity ? Is distinctive and specific to a particular organization ? Avoids use of generic language ? Triggers strong emotions ? Is challenging, uncomfortable, nail biting
?
Examples of Strategic Visions Nike
To bring innovation inspiration to every athlete in the world.
Examples of Strategic Visions
Intel’s vision:
Getting to a billion connected computers worldwide, millions of servers, and trillions of dollars of e-commerce.
Intel’s mission:
Being the building block supplier to the Internet economy and spurring efforts to make the Internet more useful. Being connected is now at the center of people’s computing experience. We are helping to expand the capabilities of the PC platform and the Internet . . . We have seen only the early stages of deployment of digital technologies.
Examples of Strategic Visions
Heinz
Our vision, quite simply, is to be the world’s premier food company, offering nutritious, superior tasting foods to people everywhere. Being the premier food company does not mean being the biggest but it does mean being the best in terms of consumer value, customer service, employee talent, and consistent and predictable growth.
Examples of Strategic Visions
General Electric
We will become number one or number two in every market we serve, and revolutionize this company to have the speed and agility of a small enterprise.
Vision of INFOSYS ? to be a globally respected software corporation providing best-in-class business solutions employing best-ofbreed professionals."
Vision of WIPRO
Wipro's Vision is focused on attaining leadership
?
Business Leadership: Among the top 10 Information Technology Services companies globally and the No.1 Information Technology company in India.
Customer Leadership : The No.1 choice of customers through innovative solutions and Six Sigma processes. People Leadership : Among the top 10 most preferred employers globally by creating an environment of empowerment, intellectual challenge and wealth sharing. Brand Leadership : Wipro to be among the 5 most admired brand in India.
?
?
?
Vision of BHARTI to make Bharti
Bharti’s brand essence : ?Big Transformations. Brave Actions.?
?India’s finest conglomerate by 2020?
Vision of NTPC A world class
integrated power major, powering India’s growth, with increasing global presence
Strategic Vision vs. Mission
?
A strategic vision concerns a firm’s future business path “where we are going”
? ?
?
Markets to be pursued Future technologyproduct-customer focus Kind of company management is trying to create
The 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
?
Characteristics of a Mission Statement
?
?
Defines current business activities, highlighting boundaries of current business ? Present products and services ? Types of customers served Conveys ? Who we are, ? What we do, and ? Why we are here A company’s mission is not to make a profit! Its true mission is its answer to “What will we do to make a profit?” Making profit is an intended outcome!
Key Elements of a Mission Statement
?
Three factors to consider
?
Customer needs – What is being satisfied Customer groups – Who is being satisfied
?
?
Technologies/resources/business approaches used and activities performed – How customer needs are satisfied
Mission Statement of ONGC
To be a world class Oil and Gas Company
integrated in energy business with dominant Indian Leadership and global presence
Mission Statement of NIRMA
A customer – focused company
committed to consistently offer better quality products and services that maximize value to the customer
Communicating the Strategic Vision
?
An exciting, inspirational vision
?
Contains memorable language
?
? ?
Clearly maps company’s future direction
Challenges and motivates workforce Provokes emotion and enthusiasm Putting ?where we are going and why? in writing Distributing the statement organization-wide
?
Winning support for the vision involves
? ?
?
Having executives explain the vision to the workforce
Examples: Vision Slogans
Levi Strauss & Company “We will clothe the world by marketing the most appealing and widely worn casual clothing in the world.”
Microsoft Corporation
“Empower people through great software—any time, any place, and on any device.”
Mayo Clinic
“The best care to every patient every day.”
Examples: Vision Slogans
Scotland Yard
?To make London the safest major city in the world.?
Greenpeace ?To halt environmental abuse and promote environmental solutions.?
Linking the Vision With Company Values
?
?
A statement of values is often provided to guide the company’s pursuit of its vision
Values – Beliefs, business principles, and ways of doing things that are incorporated into
? ?
Company’s operations Behavior of workforce
?
Values statements
?
?
Contain between four and eight values
Are ideally tightly connected to and reinforce company’s vision, strategy, and operating practices
Organizational Values..
?Define
the acceptable standards which govern the behaviour of individuals within the organization.
?Without
such values, individuals will pursue behaviours that are in line with their own individual value systems, which may lead to behaviours that the organization doesn't wish to encourage.
?Determine ? ? ? ?
the “character” of organization
Determined by the founders Influenced by successive CEOs Competitive advantage Control mechanism
Spirit of Wipro
Intensity to Win
? ?
Make customers successful Team, Innovate, Excel
Act with Sensitivity
?
?
Respect for the individual
Thoughtful and responsible
Unyielding Integrity
? ?
Delivering on commitments Honesty and fairness in action
Infosys
?
Customer Delight: A commitment to surpassing our customer expectations. Leadership by Example: A commitment to set standards in our business and transactions and be an exemplar for the industry and our own teams. Integrity and Transparency: A commitment to be ethical, sincere and open in our dealings. Fairness: A commitment to be objective and transactionoriented, thereby earning trust and respect. Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve ourselves, our teams, our services and products so as to become the best.
?
?
?
?
SAIL
?
We build lasting relationships with customers based on trust and mutual benefit. We uphold highest ethical standards in conduct of our business We create and nurture a culture that supports flexibility, learning and is proactive to change. We chart a challenging career for employees with opportunities for advancement and rewards. We value the opportunity and responsibility to make a meaningful difference in people's lives.
?
?
?
?
Indian Oil Corporation
NTPC’s Core Values
B usiness Ethics
C ustomer Focus O rganizational and Professional Pride
M utual Respect & Trust
I nnovation and Speed T otal Quality for Excellence
ENRON’s Values
RESPECT: We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness, and arrogance don't belong here. INTEGRITY: We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, we won't do it. COMMUNICATION: We have an obligation to communicate. Here, we take the time to talk with one another...and to listen. We believe that information is meant to move and that information moves people. EXCELLENCE: We are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone. The great fun here will be for all of us to discover just how good we can really be.
Ways to inculcate values
?
Conducting Value workshops
Story telling
?
?
? ?
Reward & Recognition
Disincentive for non compliance Role Modeling
Setting Objectives
?
Purpose of setting objectives
? ? ?
Converts vision into specific performance targets
Creates yardsticks to track performance
Pushes firm to be inventive, intentional, and focused in its actions Complacency Internal confusion Status quo performance
?
Setting challenging, achievable objectives guards against
? ? ?
Characteristics of Objectives
?
Represent commitment to achieve specific performance targets
?
Spell-out how much of what kind of performance by when
Well-stated objectives are
?
? ?
?
Quantifiable
Measurable Contain a deadline for achievement
Establishing objectives converts the vision into concrete performance outcomes!
Types of Objectives Required
Financial Objectives
Outcomes focused on improving financial performance
Strategic Objectives
Outcomes focused on improving long-term competitive business position
Examples: Financial Objectives
?
X % increase in annual revenues ? X % increase annually in after-tax profits ? X % increase annually in earnings per share ? Annual dividend increases of X % ? Profit margins of X % ? X % return on capital employed (ROCE) ? Increased shareholder value ? Strong bond and credit ratings ? Sufficient internal cash flows to fund 100% of new capital investment
Examples: Strategic Objectives
?
Winning an X % market share ? Achieving lower overall costs than rivals ? Overtaking key competitors on product performance or quality or customer service ? Deriving X % of revenues from sale of new products introduced in past 5 years ? Achieving technological leadership ? Having better product selection than rivals ? Strengthening company’s brand name appeal ? Having stronger national or global sales and distribution capabilities than rivals ? Consistently getting new or improved products to market ahead of rivals
Unilver’s Strategic and Financial Objectives
? ? ? ?
Grow annual revenues by 5-6% annually Increase operating profit margins from 11% to 16% within 5 years Trim company’s 1200 food, household, and personal care products down to 400 core brands Focus sales and marketing efforts on those brands with potential to become respected, market-leading global brands Streamline company’s supply chain
?
3M Corporation’s Financial and Strategic Objectives
? ? ? ?
To achieve annual growth in earnings per share of 10% or better, on average A return on stockholders’ equity of 20-25% A return on capital employed of 27% or better Have at least 30% of sales come from products introduced in the past four years
Strategic Performance Fosters Better Financial Performance
?
A company’s achievement of satisfactory financial performance, by itself, is not enough
?
Financial performance measures are “lagging indicators” reflecting results of past decisions and actions
?
Of equal or greater importance is a company’s performance on measures of its strategic well-being — its competitiveness and market position
?
Strategic performance measures are “leading indicators” of a company’s future financial performance and business prospects Achievement of strategic performance targets • Signals growing competitiveness
?
• Signals growing strength in the marketplace
Balanced Scorecard Approach – Strategic and Financial Objectives
?
?
?
Balanced scorecard approach for measuring company performance requires both – ? Financial objectives ? Strategic objectives Emphasis on financial performance may assume priority over strategic performance when company’s ? Financial performance is dismal and ? Survival is threatened Otherwise, put more emphasis on achieving strategic objectives
The surest path to sustained future profitability year after year is to relentlessly pursue strategic outcomes that strengthen a company’s business position and give it a growing competitive advantage over rivals!
Short-Term vs. Long-Term Objectives
?
Short-term objectives
? ?
Targets to be achieved soon Milestones or stair steps for reaching long-range performance
?
Long-term objectives
? ?
Targets to be achieved within 3 to 5 years Prompt actions now that will permit reaching targeted long-range performance later
Objectives Are Needed at All Levels
1. First, establish organization-wide objectives and
performance targets 2. Next, set business and product line objectives 3. Then, establish functional and departmental objectives 4. Individual objectives are established last
Importance of Top-Down Objectives
?
Guide objective-setting and strategy-making at lower levels
?
Ensures financial and strategic performance targets for all business units, divisions, and departments are directly connected to achieving company-wide objectives Integration of objectives has two advantages
?
?
Helps produce cohesion among objectives and strategies of different parts of organization
?
Helps unify internal efforts to move a company along the chosen strategic path
Concept of Strategic Intent
A company exhibits strategic intent when it relentlessly pursues an ambitious strategic objective and concentrates its competitive actions and energies on achieving that objective!
Characteristics of Strategic Intent
?
Indicates firm’s intent to making quantum gains in competing against key rivals and to establishing itself as a winner in the marketplace, often against long odds Involves establishing a grandiose performance target that is out of proportion to its immediate capabilities and market position but then devoting the company’s full resources and energies to achieving the target over time
Signals relentless commitment to achieving a particular market position and competitive standing
?
?
Examples of Strategic Intents
?
NIKE’s Strategic Intent during 1960s – ?Overtake Adidas?
Wal-Mart’s strategic intent during 1980s- ?Overtake SEARS? Honda’s response when Yamaha overtook Honda
?
?
?We will crush YAMAHA?
Canon’s strategic intent – ?Beat XEROX?
?
doc_735356918.pptx
It gives examples of Intel's vision, nike, Heinz, GE, Infosys, wipro, bharti and NTPC. It differentiates between strategic vision and mission. It gives mission statement of ONBC, NIRMA. It also highlights the what are core values of an organization with the help of examples from SAIL, IOCL, Enron.
VISION, MISSION, VALUES
and STRATEGIC INTENT
“If you don’t know where you are going, any road will take you there.?
The Koran
“Management’s job is not to see the
company as it is . . .
but as it can become.?
John W. Teets
Developing a Strategic Vision
?
Involves thinking strategically about
? ?
Future direction of company Changes in company’s product-marketcustomer-technology to improve
• Current market position
• Future prospects
A strategic vision is a road map showing the route a company intends to take in developing and strengthening its business. It paints a picture of a company’s destination and provides a rationale for going there.
Key Elements of Strategic Vision
Delineates management’s aspirations for the business – ? Charts a strategic path for the future “Where are we going?” ? Steers energies of employees in a common direction ? Molds organizational identity ? Is distinctive and specific to a particular organization ? Avoids use of generic language ? Triggers strong emotions ? Is challenging, uncomfortable, nail biting
?
Examples of Strategic Visions Nike
To bring innovation inspiration to every athlete in the world.
Examples of Strategic Visions
Intel’s vision:
Getting to a billion connected computers worldwide, millions of servers, and trillions of dollars of e-commerce.
Intel’s mission:
Being the building block supplier to the Internet economy and spurring efforts to make the Internet more useful. Being connected is now at the center of people’s computing experience. We are helping to expand the capabilities of the PC platform and the Internet . . . We have seen only the early stages of deployment of digital technologies.
Examples of Strategic Visions
Heinz
Our vision, quite simply, is to be the world’s premier food company, offering nutritious, superior tasting foods to people everywhere. Being the premier food company does not mean being the biggest but it does mean being the best in terms of consumer value, customer service, employee talent, and consistent and predictable growth.
Examples of Strategic Visions
General Electric
We will become number one or number two in every market we serve, and revolutionize this company to have the speed and agility of a small enterprise.
Vision of INFOSYS ? to be a globally respected software corporation providing best-in-class business solutions employing best-ofbreed professionals."
Vision of WIPRO
Wipro's Vision is focused on attaining leadership
?
Business Leadership: Among the top 10 Information Technology Services companies globally and the No.1 Information Technology company in India.
Customer Leadership : The No.1 choice of customers through innovative solutions and Six Sigma processes. People Leadership : Among the top 10 most preferred employers globally by creating an environment of empowerment, intellectual challenge and wealth sharing. Brand Leadership : Wipro to be among the 5 most admired brand in India.
?
?
?
Vision of BHARTI to make Bharti
Bharti’s brand essence : ?Big Transformations. Brave Actions.?
?India’s finest conglomerate by 2020?
Vision of NTPC A world class
integrated power major, powering India’s growth, with increasing global presence
Strategic Vision vs. Mission
?
A strategic vision concerns a firm’s future business path “where we are going”
? ?
?
Markets to be pursued Future technologyproduct-customer focus Kind of company management is trying to create
The 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
?
Characteristics of a Mission Statement
?
?
Defines current business activities, highlighting boundaries of current business ? Present products and services ? Types of customers served Conveys ? Who we are, ? What we do, and ? Why we are here A company’s mission is not to make a profit! Its true mission is its answer to “What will we do to make a profit?” Making profit is an intended outcome!
Key Elements of a Mission Statement
?
Three factors to consider
?
Customer needs – What is being satisfied Customer groups – Who is being satisfied
?
?
Technologies/resources/business approaches used and activities performed – How customer needs are satisfied
Mission Statement of ONGC
To be a world class Oil and Gas Company
integrated in energy business with dominant Indian Leadership and global presence
Mission Statement of NIRMA
A customer – focused company
committed to consistently offer better quality products and services that maximize value to the customer
Communicating the Strategic Vision
?
An exciting, inspirational vision
?
Contains memorable language
?
? ?
Clearly maps company’s future direction
Challenges and motivates workforce Provokes emotion and enthusiasm Putting ?where we are going and why? in writing Distributing the statement organization-wide
?
Winning support for the vision involves
? ?
?
Having executives explain the vision to the workforce
Examples: Vision Slogans
Levi Strauss & Company “We will clothe the world by marketing the most appealing and widely worn casual clothing in the world.”
Microsoft Corporation
“Empower people through great software—any time, any place, and on any device.”
Mayo Clinic
“The best care to every patient every day.”
Examples: Vision Slogans
Scotland Yard
?To make London the safest major city in the world.?
Greenpeace ?To halt environmental abuse and promote environmental solutions.?
Linking the Vision With Company Values
?
?
A statement of values is often provided to guide the company’s pursuit of its vision
Values – Beliefs, business principles, and ways of doing things that are incorporated into
? ?
Company’s operations Behavior of workforce
?
Values statements
?
?
Contain between four and eight values
Are ideally tightly connected to and reinforce company’s vision, strategy, and operating practices
Organizational Values..
?Define
the acceptable standards which govern the behaviour of individuals within the organization.
?Without
such values, individuals will pursue behaviours that are in line with their own individual value systems, which may lead to behaviours that the organization doesn't wish to encourage.
?Determine ? ? ? ?
the “character” of organization
Determined by the founders Influenced by successive CEOs Competitive advantage Control mechanism
Spirit of Wipro
Intensity to Win
? ?
Make customers successful Team, Innovate, Excel
Act with Sensitivity
?
?
Respect for the individual
Thoughtful and responsible
Unyielding Integrity
? ?
Delivering on commitments Honesty and fairness in action
Infosys
?
Customer Delight: A commitment to surpassing our customer expectations. Leadership by Example: A commitment to set standards in our business and transactions and be an exemplar for the industry and our own teams. Integrity and Transparency: A commitment to be ethical, sincere and open in our dealings. Fairness: A commitment to be objective and transactionoriented, thereby earning trust and respect. Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve ourselves, our teams, our services and products so as to become the best.
?
?
?
?
SAIL
?
We build lasting relationships with customers based on trust and mutual benefit. We uphold highest ethical standards in conduct of our business We create and nurture a culture that supports flexibility, learning and is proactive to change. We chart a challenging career for employees with opportunities for advancement and rewards. We value the opportunity and responsibility to make a meaningful difference in people's lives.
?
?
?
?
Indian Oil Corporation
NTPC’s Core Values
B usiness Ethics
C ustomer Focus O rganizational and Professional Pride
M utual Respect & Trust
I nnovation and Speed T otal Quality for Excellence
ENRON’s Values
RESPECT: We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness, and arrogance don't belong here. INTEGRITY: We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, we won't do it. COMMUNICATION: We have an obligation to communicate. Here, we take the time to talk with one another...and to listen. We believe that information is meant to move and that information moves people. EXCELLENCE: We are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone. The great fun here will be for all of us to discover just how good we can really be.
Ways to inculcate values
?
Conducting Value workshops
Story telling
?
?
? ?
Reward & Recognition
Disincentive for non compliance Role Modeling
Setting Objectives
?
Purpose of setting objectives
? ? ?
Converts vision into specific performance targets
Creates yardsticks to track performance
Pushes firm to be inventive, intentional, and focused in its actions Complacency Internal confusion Status quo performance
?
Setting challenging, achievable objectives guards against
? ? ?
Characteristics of Objectives
?
Represent commitment to achieve specific performance targets
?
Spell-out how much of what kind of performance by when
Well-stated objectives are
?
? ?
?
Quantifiable
Measurable Contain a deadline for achievement
Establishing objectives converts the vision into concrete performance outcomes!
Types of Objectives Required
Financial Objectives
Outcomes focused on improving financial performance
Strategic Objectives
Outcomes focused on improving long-term competitive business position
Examples: Financial Objectives
?
X % increase in annual revenues ? X % increase annually in after-tax profits ? X % increase annually in earnings per share ? Annual dividend increases of X % ? Profit margins of X % ? X % return on capital employed (ROCE) ? Increased shareholder value ? Strong bond and credit ratings ? Sufficient internal cash flows to fund 100% of new capital investment
Examples: Strategic Objectives
?
Winning an X % market share ? Achieving lower overall costs than rivals ? Overtaking key competitors on product performance or quality or customer service ? Deriving X % of revenues from sale of new products introduced in past 5 years ? Achieving technological leadership ? Having better product selection than rivals ? Strengthening company’s brand name appeal ? Having stronger national or global sales and distribution capabilities than rivals ? Consistently getting new or improved products to market ahead of rivals
Unilver’s Strategic and Financial Objectives
? ? ? ?
Grow annual revenues by 5-6% annually Increase operating profit margins from 11% to 16% within 5 years Trim company’s 1200 food, household, and personal care products down to 400 core brands Focus sales and marketing efforts on those brands with potential to become respected, market-leading global brands Streamline company’s supply chain
?
3M Corporation’s Financial and Strategic Objectives
? ? ? ?
To achieve annual growth in earnings per share of 10% or better, on average A return on stockholders’ equity of 20-25% A return on capital employed of 27% or better Have at least 30% of sales come from products introduced in the past four years
Strategic Performance Fosters Better Financial Performance
?
A company’s achievement of satisfactory financial performance, by itself, is not enough
?
Financial performance measures are “lagging indicators” reflecting results of past decisions and actions
?
Of equal or greater importance is a company’s performance on measures of its strategic well-being — its competitiveness and market position
?
Strategic performance measures are “leading indicators” of a company’s future financial performance and business prospects Achievement of strategic performance targets • Signals growing competitiveness
?
• Signals growing strength in the marketplace
Balanced Scorecard Approach – Strategic and Financial Objectives
?
?
?
Balanced scorecard approach for measuring company performance requires both – ? Financial objectives ? Strategic objectives Emphasis on financial performance may assume priority over strategic performance when company’s ? Financial performance is dismal and ? Survival is threatened Otherwise, put more emphasis on achieving strategic objectives
The surest path to sustained future profitability year after year is to relentlessly pursue strategic outcomes that strengthen a company’s business position and give it a growing competitive advantage over rivals!
Short-Term vs. Long-Term Objectives
?
Short-term objectives
? ?
Targets to be achieved soon Milestones or stair steps for reaching long-range performance
?
Long-term objectives
? ?
Targets to be achieved within 3 to 5 years Prompt actions now that will permit reaching targeted long-range performance later
Objectives Are Needed at All Levels
1. First, establish organization-wide objectives and
performance targets 2. Next, set business and product line objectives 3. Then, establish functional and departmental objectives 4. Individual objectives are established last
Importance of Top-Down Objectives
?
Guide objective-setting and strategy-making at lower levels
?
Ensures financial and strategic performance targets for all business units, divisions, and departments are directly connected to achieving company-wide objectives Integration of objectives has two advantages
?
?
Helps produce cohesion among objectives and strategies of different parts of organization
?
Helps unify internal efforts to move a company along the chosen strategic path
Concept of Strategic Intent
A company exhibits strategic intent when it relentlessly pursues an ambitious strategic objective and concentrates its competitive actions and energies on achieving that objective!
Characteristics of Strategic Intent
?
Indicates firm’s intent to making quantum gains in competing against key rivals and to establishing itself as a winner in the marketplace, often against long odds Involves establishing a grandiose performance target that is out of proportion to its immediate capabilities and market position but then devoting the company’s full resources and energies to achieving the target over time
Signals relentless commitment to achieving a particular market position and competitive standing
?
?
Examples of Strategic Intents
?
NIKE’s Strategic Intent during 1960s – ?Overtake Adidas?
Wal-Mart’s strategic intent during 1980s- ?Overtake SEARS? Honda’s response when Yamaha overtook Honda
?
?
?We will crush YAMAHA?
Canon’s strategic intent – ?Beat XEROX?
?
doc_735356918.pptx