Principles of
Management 2.0
Mason Carpenter, Talya Bauer, Berrin Erdogan, and Jeremy Short
©2013 Flat World Knowledge, Inc.
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Chapter 4
Developing Mission, Vision, and Values
Learning Objectives
© Jupiterimages Corporation
 Understand the roles of mission,
vision, and values in the planning
process
 Understand how mission and vision
fit into the planning-organizingleading-controlling (P-O-L-C)
framework
 See how creativity and passion and
creativity relate to vision
 Incorporate stakeholder interests
into mission and vision
 Develop statements that articulate
organizational mission and vision
 Apply mission, vision, and values to
your personal and professional
career
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Mission and Vision as P-O-L-C Components
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Mission, Vision, and Values
63% of over 1,000 firms surveyed globally reported
using mission and value statements as a management
tool.
Firms with clearly communicated, widely understood,
and collectively shared mission and vision have been
shown to perform better than those without them
Bain & Company
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What is the difference?
Mission Statements
Vision Statements
 Communicates the
organization’s reason for
being, and how it aims to
serve its key stakeholders
 Often integrates a
summation of the firm’s
values
 Mission statements tend to
be longer than vision
statements
 A future-oriented
declaration of the
organization’s purpose and
aspirations.
 Addresses what a firm
wants to become
 Vision statements tend to be
relatively brief
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Starbucks 6 Guiding Principles
The following will help Starbucks managers measure
the appropriateness of their decisions:
• Provide a great work environment and treat each other with
respect and dignity.
• Embrace diversity as an essential component in the way
we do business.
• Apply the highest standards of excellence to the
purchasing, roasting and fresh delivery of our coffee.
• Develop enthusiastically satisfied customers all of the
time.
• Contribute positively to our communities and our
environment.
• Recognize that profitability is essential to our future
success.
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Sample Mission Statements
To establish Starbucks as the
premier purveyor of the finest
coffee in the world while
maintaining our uncompromising
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Sample Mission Statements
Google Mission Statement: "Google's mission is
to organize the world's information and make it
universally accessible and useful.
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Vision Statement
Samples
Sample
Visions
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Sample Visions
John F. Kennedy's Moon Landing Mission Statement
“I believe that this nation should commit itself to achieving the goal,
before this decade is out, of landing a man on the moon
and returning him safely to the earth.”
JFK, Man on the Moon Speech
Joint Session of Congress May 25, 1961
http://www.clintburdett.com/process/11_documents/documents_01_3_jfk_vision.htm
(with video)
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Roles Played by Mission and Vision
1. Communicate the purpose of the
organization to stakeholders
2. Inform strategy development
3. Develop the measurable goals and
objectives by which to gauge the success of
the organization’s strategy
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Mission Statement
A Mission statement talks about HOW you will
get to where you want to be. Defines the
About
purpose and primary objectives related to your
customer needs and team values.
Answer “What do we do? What makes us different?”
Time Talk about the present leading to its future.
Vision Statement
A Vision statement outlines WHERE you want
to be. Communicates both the purpose and
values of your business.
“Where do we aim to be?”
Talk about your future.
It lists the broad goals for which the
It lists where you see yourself some years
organization is formed. Its prime function is
from now. It inspires you to give your best. It
internal; to define the key measure or
shapes your understanding of why you are
Function
measures of the organization's success and its working here.
prime audience is the leadership, team and
stockholders.
Your mission statement may change, but it
As your organization evolves, you might feel
should still tie back to your core values,
tempted to change your vision. However,
mission or vision statements explain your
Change customer needs and vision.
organization's foundation, so change should
be kept to a minimum.
Developing What do we do today? For whom do we do it? Where do we want to be going forward?
What is the benefit? In other words, Why we When do we want to reach that stage? How
a statement do what we do? What, For Whom and Why? do we want to do it?
Purpose and values of the organization: Who Clarity and lack of ambiguity: Describing a
Features of are the organization's primary "clients"
bright future (hope); Memorable and
an effective (stakeholders)? What are the responsibilities of engaging expression; realistic aspirations,
statement the organization towards the clients? (Link) achievable; alignment with organizational
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values and culture.
Discussion
 Alone or in a group, think about the concept of a mission
statement. Besides knowing what a mission statement is, do you
feel it is important for organizations to have mission statements?
Why or why not?
 What about a vision statement? Is it as important as or less
important than a mission statement?
 How are values important to the content of mission and vision
statements?
 What happens if an organization’s mission and vision statements
don’t seem sincere? How might this affect an organization?
 How do mission and vision relate to a firm’s strategy?
 In what ways are mission and vision important for organizational
goals and objectives?
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Peter Drucker's the 5 Most Important Questions
About Your Organization
• The self-assessment process is a method for assessing
what you are doing, why you are doing it, and what you
must do to improve an organization's performance.
• It asks the five essential questions:
– What is our mission?
– Who is our customer?
– What does the customer value?
– What are our results?
– What is our plan?
Source: http://www.hesselbeininstitute.org/tools/sat/
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Google Values:
Ten things
we know to be true
Source: http://www.google.com/about/company/philosophy/
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Zappos Core Value
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Deliver WOW Through Service
Embrace and Drive Change
Create Fun and A Little Weirdness
Be Adventurous, Creative, and Open-Minded
Pursue Growth and Learning
Build Open and Honest Relationships With Communication
Build a Positive Team and Family Spirit
Do More With Less
Be Passionate and Determined
Be Humble
http://about.zappos.com/our-unique-culture/zappos-core-values
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V2MOM
CEO of
salesforce.com
• VISION (What do you want?)
• VALUES (What's important about it?)
• METHODS (How do you get it?)
• OBSTACLES (What might stand in the way?)
• MEASURES (How will you know when you
have it?)
http://blogs.salesforce.com/company/2013/04/how-to-create-alignment-within-your-company.html
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V2MOM by Salesforce.com
• Vision, Values, Methods, Obstacles, and Measures.
• The vision helped us define what we wanted to do.
• The values established what was most important about
that vision; it set the principles and beliefs that guided it (in
priority).
• The methods illustrated how we would get the job done by
outlining the actions and the steps that everyone needed
to take.
• The obstacles identified the challenges, problems, and
issues we would have to overcome to achieve our vision.
• The measures specified the actual result we aimed to
achieve; often this was defined as a numerical outcome.19
Salesforce.com’s First V2MOM, 4/12/1999
Vision
Rapidly create a world-class Internet company/site for
Sales Force Automation.
Values
1. World-class organization
2. Time to market
3. Functional
4. Usability (Amazon quality)
5. Value-added partnerships
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Methods
1. Hire the team
2. Finalize product specification and technical
architecture
3. Rapidly develop the product specification to beta
and production stages
4. Build partnerships with big e-commerce, content,
and hosting companies
5. Build a launch plan
6. Develop exit strategy: IPO/acquisition
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Obstacles
1. Developers
2. Product manager/business development person
Measures
1. Prototype is state-of-the-art
2. High-quality functional system
3. Partnerships are online and integrated
4. Salesforce.com is regarded as leader and visionary
5. We are all rich
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Evolving
Visions
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On Mission and Vision
• The vision/mission needs to represent an ambition that
stretches far beyond the current resources and capabilities
of the company. Don’t get stuck in the mud of today.
Unshackle your thoughts and fly unencumbered in the
freedom of tomorrow.
– Gary Hamel and C.K. Prahalad, 1990
• Do not be impatient, and don’t look for small advantages. If
you are impatient, you will not be thorough. If you look for
small advantages, you will never accomplish anything great.
- Confucius, Chinese Philosopher and social critic, 551 BC – 479 BC
《論語‧子路》子夏為莒父宰，問政。子曰：
「無欲速，無見小利。欲速，則不達；見小利，則大事不成。」
(Link)
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http://www.visionsforireland.com/files/2012/01/Visions-for-Ireland-Strategy-Pyramid-1024x622.png
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Mission, Vision, and Leading
Leading involves
influencing others
toward the attainment of
organizational objectives
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Vision, Mission, and Control
Controlling consists of three steps
1. Establish
performance
standards
2. Compare
actual
performance
against standards
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3. Take corrective
action when
necessary
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Discussion
• How might mission and vision influence
organizational design?
• How might mission and vision influence
leadership practices?
• Why might a specific replacement CEO candidate
be a good or poor choice for a firm with an
existing mission and vision?
• Which aspects of controlling do mission and
vision influence?
• What performance standards might reinforce a
firm’s mission and vision?
©2013 Flat World Knowledge, Inc.
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Creativity is the
power or ability to
invent
Passion is an intense
emotion compelling
action
©2013 Flat World Knowledge, Inc.
Mission
and
Vision
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“Engaged employees are not just
Passion as
Inspiration
Passion
about
the
Vision
committed. They are not just
passionate or proud. They have a
line-of-sight on their own future and
on the organization’s mission and
goals. They are ‘enthused’ and ‘in
gear’ using their talents and
discretionary effort to make a
difference in their employer’s quest
for sustainable business success.”
-Employee Engagement Report 2008
Additional reference:
http://en.wikipedia.org/wiki/Employee_engagement
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Disengaged and Dissatisfied Employees
75–80 percent of employees are either “disengaged” or
“actively disengaged”
Only 20 percent feel very passionate about their jobs
Less than 15 percent agree that they feel strongly energized
by their work
Only 31 percent (strongly or moderately) believe that their
employer inspires the best in them
©2013 Flat World Knowledge, Inc.
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Discussion
• Think about a time when you have been especially
creative. What factors do you think helped
contribute to your creativity?
• Why is creativity relevant to vision and vision
statements?
• What are some useful creativity tools?
• What is passion and why is passion relevant to
vision and vision statements?
• What is the relationship between passion and
engagement?
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Stakeholders
The American Federation of
Labor and Congress of
Industrial Organizations
(AFL–CIO) is a powerful
stakeholder as a federation
of unions that represented
over 11 million workers in
2012.
© 2010 Jupiterimages Corporation
http://www.flickr.com/photos/labor2008/3272687139
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http://annual-sustainability-report-2010.pirelli.com/en/creation-value/stakeholder-engagement
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Stakeholder Mapping
©2013 Flat World Knowledge, Inc.
http://www.mindtools.com/pages/article/newPPM_07.htm#Interactive
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Steps in Identifying Stakeholders
Step 1: Determining Influences on Mission,
Vision, and Strategy Formulation
Step 2: Determining the Effects of Key
Decisions on the Stakeholder
Step 3: Determining Stakeholders' Power
and Influence (Interests) over Decisions
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Strategic Assumptions Surfacing and Testing
SAST is a process which reveals the underlying assumptions of a policy
or plan and helps create a map for exploring them. SAST incorporates
the following principles:
• Adversarial - based on the premise that the best way to test an
assumption is to oppose it.
• Participative - based on the premise that the knowledge and
resources necessary to solve and implement the solution to a
complex problem is distributed among a group of individuals.
• Integrative - based on the premise that a unified set of assumptions
and action plan are needed to guide decision making, and that what
comes out of the adversarial and participative elements can be
unified.
• Managerial mind supporting - based on the premise that exposure to
assumption deepens the manager's insight into an organization and
its policy, planning, and strategic problems.
•
http://www.ifm.eng.cam.ac.uk/research/dstools/strategic-assumptions-surfacing-and-testing/
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Discussion
• What are stakeholders and why are they relevant to
mission and vision?
• Are stakeholders equally relevant to all parts of P-O-L-C,
or only mission and vision?
• What is stakeholder analysis? What are the three
identification steps?
• How does stakeholder analysis help you craft a mission
and vision statement?
• Which important stakeholders might you intentionally
exclude from a mission or vision statement?
• What are the risks of not conducting stakeholder analysis
as an input to the formulation of your mission and
vision?
©2013 Flat World Knowledge, Inc.
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The End
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Developing Your Personal Vision & Mission
1. Identify Past Successes
2. Identify Core Values
3. Identify Contributions
4. Identify Goals
5. Write Mission and Vision Statements
©2013 Flat World Knowledge, Inc.
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Discussion
• How does a personal mission and vision statement
differ from one created for an organization?
• What time period should a personal mission and
vision statement cover?
• What type of goals should you start thinking about
in creating a personal mission and vision?
• How are your strengths and weaknesses relevant to
mission and vision?
• What stakeholders seem relevant to your personal
mission and vision?
©2013 Flat World Knowledge, Inc.
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Four Creativity Types
McDonald Ray Kroc
Miller vs. Budweuser
Apple Steve Jobs
3M, Google
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SCAMPER Method for Brainstorming (Eberle, 1971)
Substitute
What could be used instead of an existing
component?
Combine
What could be added to an existing product?
Adapt
How can it be adjusted to suit a condition or
purpose?
Modify,
How can the color, shape, or form be changed?
Magnify, &
How can it be made larger, stronger, or thicker?
Minify
How can it be made smaller, lighter, or shorter?
Put to other What else can it be used for?
uses
Eliminate
What can be removed or taken away from it?
Reverse
How can it be placed opposite its original
&Rearrange position?
How can the pattern, sequence, or layout be
changed?
Creativity Tools: SCAMPER
Come up with examples of SCAMPER
 Inspires lateral thinking vs.
programmed thinking
 Involves a reflective and probing
style of asking questions
A man walks into a bar, and asks the
bartender for a drink of water. The
bartender pulls out a gun, points it at
the man, and cocks it. The man says
"Thank you" and leaves. What
happened?
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Creativity Tools:
Nominal Group Technique
 Generates numerous creative ideas
 Ensures everyone is heard
 Effective when there is concern that some
people may not be vocal
 Builds consensus
 Recommended when there is controversy or
conflict
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