Building Your Company Vision 6v2n4e

Building your company vision Dr. Rajesh Tripathi

Building your company vision

•Vision without Execution is Hallucination –- Thomas Edison

Building your company vision contd.. • Two components of vision: core ideology- what we stand for and why we exist and envisioned future- what we aspire to become. • Core ideology- It defines the enduring character of the organisation. Visionary provide core ideology. • It is a source of guidance and inspiration. It is a glue which holds the organisation. • It consists of 2 parts- core values and core purpose.

Building your company vision • Core values- They are the essential and enduring tenets of the organisation, doesn’t require external justification but have intrinsic value. E.g. P&G, Generally companies have 3 to 5 CV. They will change seldom, if ever. • Core purpose- It is oragnisation reason of existence. Purpose does not change but it inspire change.

Building your company vision • Method of getting at purpose is five whys or probe deeper. E.g. market research company. • None of the core purpose falls into the category of wealth maximisation. • Discovering core ideology- You do not create or set core ideology but you discover it by looking inside. It is not an intellectual exercise. It has to be authentic you cannot fake it.

Building your company vision • Role of core ideology is to guide and inspire not to differentiate. • You can’t force people to share your ideology , those who share will stay and others will move away. You can still have diversity of people. • Words can change to describe core ideology but not CI itself. • Envisioned future- It is the second component of vision framework.

Building your company vision • It consists of 2 parts- BHAG & Vivid description • BHAG- Big hairy audacious goals, concept of strategic intent. • Vivid description- It constitute ion, emotion, and conviction-- Ford, Merck • ion, emotion and conviction are essential parts of VD. Churchill, Movie 300, Enemy at the gates. • Core purpose≠ BHAG

Building your company vision • E.g. Vikram Sarabhai and Indian space research. • It is not audacity of goals but the level of commitment of goals that counts. • Success lies in building the strength of organisation and its people. • Replace the BHAG before on the verge of achieving. • Preserve the core and stimulate progress.

Building your company vision • Building a visionary company requires 1% vision and 99% alignment

Sony : vision • Core Ideology – Core Values – Elevation of the Japanese culture and national status – Being a pioneer—not following others; – doing the impossible – Encouraging individual ability and – creativity

Sony : vision contd.. • Purpose – To experience the sheer joy of innovation – The application of technology for the benefit and pleasure of the general public.

Sony : vision contd. • Envisioned Future – BHAG • Become the company most known for changing the worldwide poor-quality • image of Japanese products

Sony : vision contd. • Vivid Description • We will create products that become pervasive around the world.... We will be the first Japanese company to go into the U.S. market and distribute directly.... • We will succeed with innovations that U.S. companies have failed at—such as the transistor radio.... Fifty years from now, our brand name will be as well known as any in the world...and will signify innovation and quality that rival the most innovative companies anywhere.... “Made in Japan” will mean something fine, not something shoddy.

Vision • The basic dynamic of visionary companies is to preserve the core and stimulate progress. • It is vision that provides the context.

Definition of Vision • Vision : it is a description of something in future (Kotter) • It is mental perception of the kind of an environment an individual , organisation aspires to create in a time horizon (El-Namaki) • Category of forward looking intentions (Miller and Dess)

Benefits • • • •

Inspiring Common identity facilitator Competitive Risk Promoter

Mission • Mission : is a purpose or a reason for the organizations' existence Mission answers : • What is our business, • What it will be • What it should be

Characteristics of Mission • • • • • •

Feasible Precise Clear Motivating Distinctive Reflective of strategy and goal

Mission Formulation • According to Lynch (2003) – – – –

Identify the nature of the business Response of the customer Value and beliefs Emphasize team effort, cherished values and mutual respects – Sustainable competitive advantage – Distinctive core competencies – Analysis of environment and impact of vision statement

Mission formulation contd.. • • • •

Lay down business ethics Specific product/services Technological competences Top-down commitment

Comparison of Vision and Mission • Indian Oil Corporation – Vision: A major diversified transnational energy company with national leadership…………. Playing important role in oil security – Mission: • • • •

To achieve international standards maximize wealth Attain leadership Participative culture

Objective and Goal • Objective: It is an end -which organization intends to reach . It is generally specific and quantified • Goal: It denotes what an organization hopes to achieve . It could be qualitative as well as quantitative both

Characteristics of Objective • • • • • •

Understandable Precise Controllable and Measurable Challenging Correlative Constraints incorporator

Issues in Objective Setting • • • • •

Specificity Periodicity Verifiability Reality Quality

Forces that impacts Objectives • Environment forces • Realities of resources and internal power relationship • Value system of top management • Awareness by management

Types of Objectives • • • •

Strategic Objective Tactical Objective Operational Objective Individual Target