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Vision & Mission
Vision Mission & Values
That business mission is so rarely given
adequate thought is perhaps the most
important single cause of business
frustration.
Importance of Vision and Mission Statements
Characteristics of a mission statement
Components of a mission statement
Writing & evaluating mission statements
—Peter Drucker—
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Vision
“The last thing IBM needs right now is a
vision.” (July 1993)
What IBM needs most right now is a
vision.” (March 1996)
-- Louis V. Gerstner, Jr., CEO, IBM Corporation
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Vision
Agreement on the basic vision for which
the firm strives to achieve in the long
run is critically important to the firm’s
success.
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Important Components of
Organizational Vision
SPECIFIC QUESTIONS THAT HELP
FORM STRATEGIC VISIONS
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What business are we in now?
What business do we want to be in?
What will our customers want in future?
What are expectations of our stakeholders?
Who will be our future competitors? suppliers?
partners?
• What should our competitive scope be?
• How will technology impact our industry?
• What environmental scenarios are possible?
Summary of What
Organization Does
Organizational
Purpose
Broad Goals
Core Values and Beliefs
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Values
Dimensions of
Organizational Culture
Stability
The values of a person or group are
the moral principles and beliefs that
they think important in life and that
they tend to live their lives by.
Aggressiveness
People Orientation
Innovation and
Risk-Taking
Team Orientation
Attention to
Detail
Outcome
Orientation
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Hewlett-Packard’s
Basic Values: “The HP Way”
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Sharing firm’s success with employees
Showing trust and respect for employees
Providing customers with products/services of the
greatest value
Being genuinely interested in providing customers
with effective solutions to their problems
Making profit a high stockholder priority
Avoiding use of long-term debt to finance growth
Individual initiative, creativity, & teamwork
Being a good corporate citizen
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Vision
• A clear vision provides foundation for comprehensive
mission statement
• Many organizations have both a vision and a mission
statement, but the vision statement should be
established first and foremost.
• The vision statement should be short, preferably one
sentence, and as many managers as possible should
have input into developing the statement.
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Vision Versus Mission
Example
Mission Statement
Answers the Question
Vision Statement
“The Bellevue Hospital is the
LEADER in providing resources
necessary to realize the
community’s highest level of
HEALTH throughout life.”
“What is Our
Business?”
Vision Statement
Answers the Question
“What Do We Want
to Become?”
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Vision and Mission
Vision:
An overall picture of where the entire
organization would like to be in the
future
Mission:
A statement of what the various
organizational units do and what they
hope to accomplish in alignment with
the organizational vision
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Mission Statements
Mission Statements
– Reveal what an organization wants to be
and whom it wants to serve
– Essential for effectively establishing
objectives and formulating strategies
Several examples are given in Table 2-1 in the textbook.
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Example
Mission Statement
“The Bellevue Hospital, with respect, compassion,
integrity, and courage, honors the individuality
and confidentiality of our patients, employees,
and community, and is progressive in
anticipating and providing future health care
services.”
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Developing Vision & Mission
• Clear mission is needed before
alternative strategies can be formulated
and implemented
• Important to have as broad range of
participation as possible among
managers in developing the mission
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Developing A Mission
Reasons for Developing a Written Mission 1-28
Statement
A widely used approach to developing a mission statement is to
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Select several articles about mission statements and ask all
managers to read these as background information.
Ask managers to prepare a mission statement for the organization.
A facilitator, or committee of top managers, should then merge
these statements into a single document and distribute this draft
to all managers.
Unanimity of purpose within the organization
Basis for allocating resources
Establish organizational climate
Focal point for direction
Translate objectives into work structure
Cost, time and performance parameters
assessed and controlled
A request for modifications, additions, and deletions is needed next
along with a meeting to revise the document.
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Mission Characteristics
Mission Characteristics
Effective mission statements:
Effective mission statements:
• Reflect judgments re: future growth
• Provide criteria for selecting strategies
• Basis for generating & screening strategic
options
• Are dynamic in orientation
• Arouse positive feelings and emotions
• Motivate readers to action
• Generate the impression that firm is
successful, has direction, and is worthy of
time, support, and investment
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Customer Orientation
Components of Mission
According to Vern McGinnis, mission should:
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Define what the organization is
Define what the organization aspires to be
Limited to exclude some ventures
Broad enough to allow for creative growth
Distinguish the firm from all others
Serve as framework to evaluate current
activities
Stated clearly so that it is understood by all
-not to do
Components of mission and corresponding
questions to be answered:
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Customers:
¾“Who are the firm’s customers?”
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Products or services:
¾“What are the firm's major products or
services?”
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Components of Mission
Components of Mission
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Markets:
¾“Is the firm committed to growth and
financial soundness?”
¾“Geographically, where does the firm
compete?”
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Concern for survival, growth, and
profitability:
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Technology:
Philosophy:
¾“What are the basic beliefs, values,
aspirations, and ethical priorities of the
firm?”
¾“Is the firm technologically current?”
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Components of Organizational
Vision and Mission Statements
Components of Mission
Self-concept:
¾“What is the firm’s distinctive competence or major
competitive advantage?”
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Philosophy
Concern for
Public Image
Customers
Markets
Concern for public image:
¾“Is the firm responsive to social, community, and
environmental concerns?”
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Concern for
Employees
Self-concept
Concern for employees:
Products or
Services
Technology
Concern for
Survival, Profits,
and Growth
¾“Are employees a valuable asset of the firm?”
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PepsiCo Mission Statement
PepsiCo’s mission is to increase the value of
our shareholders’ investment. We do this
through sales growth, cost controls, and wise
investment resources. We believe our
commercial success depends upon offering
quality and value to our consumers and
customers; providing products that are safe,
wholesome, economically efficient and
environmentally sound; and providing a fair
return to our investors while adhering to the
highest standards of integrity.
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Ben & Jerry’s Mission
Statement
Ben & Jerry’s mission is to make, distribute and sell the
finest quality all-natural ice cream and related
products in a wide variety of innovative flavors made
from Vermont dairy products. To operate the
Company on a sound financial basis of profitable
growth, increasing value for our shareholders, and
creating career opportunities and financial rewards
for our employees. To operate the Company in a
way that actively recognizes the central role that
business plays in the structure of society by initiating
innovative ways to improve the quality of life of a
broad community—local, national and international.
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Evaluation Matrix of Mission
Statements
Evaluation Matrix of Mission
Statements
COMPONENTS
Organization
Customers
Products
Services
COMPONENTS
Markets
Concern for
Survival,
Growth,
Profitability
Technology
PepsiCo
Yes
No
No
Yes
No
Ben & Jerry's
No
Yes
Yes
Yes
No
Philosophy
SelfConcept
Concern for
Public Image
Concern for
Employees
PepsiCo
Yes
No
No
No
Ben & Jerry's
No
Yes
Yes
Yes
Organization