WHICH ROAD DO I TAKE?,"
Asked Alice
"WHERE DO YOU WANT TO GO?“
Responded the Cheshire Cat
"I DON'T KNOW," Alice Answered.
"THEN IT DOESN'T MATTER,” said the Cat.
“IF YOU DON'T KNOW WHERE YOU ARE GOING,
ANY ROAD WILL GET YOU THERE.”

Inspiring
Long-term
Driven by and evokes passion
Broad; Overarching; Brief
Fundamental statement of the organization’s
Values
Aspiration
Goals

3M: To solve unsolved problems innovatively
Cargill: To improve the standard of living around the world
Hewlett-Packard: To make technical contributions for the advancement and welfare of humanity
Lost Arrow Corp: To be a role model and a tool for social change
Mary Kay Cosmetics: To give unlimited opportunity to women
Merck: To preserve and improve human life
Nike: To experience the emotion of competition, winning, and crushing competitors
Wal-Mart: To give ordinary folk the chance to buy the same things as rich people
Walt Disney: To make people happy

Unique purpose of the company
Basis of competition and competitive advantages
More specific than vision
Focused on the means by which the company will compete

It is the mission of Advance Auto Parts to provide personal vehicle owners and enthusiasts with the vehicle related products and knowledge that fulfill their wants and needs at the right price. Our friendly, knowledgeable and professional staff will help inspire, educate and problem-solve for our customers.
Ecolab’s mission is to be the leading global innovator, developer and provider of cleaning, sanitation and maintenance products, systems, and services. As a team, we will achieve aggressive growth and fair return for our shareholders. We will accomplish this by exceeding the expectations of our customers while conserving resources and preserving the quality of the environment.
CVS will be the easiest pharmacy retailer for customers to use.
To nourish and delight everyone we serve. (Darden Restaurants)

The purpose of the Cooper Tire & Rubber Company is to earn money for its shareholders and increase the value of their investment. We will do that through growing the company, controlling assets and properly structuring the balance sheet, thereby increasing EPS, cash flow, and return on invested capital.
We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.

• Statement of ethical priorities
• Guidelines for norms and decision making
• Standards of behavior and practices
• Basis for moral courage

Operationalize the mission statement
SMART (S)
Indicates strategic intent
– BHAG
Strategic v Financial
Long-term v short-term
S stretch

Values Statement

Management – “
Agents”
Shareholders – “
Principals”
Board of Directors

The relationship among various participants in determining the direction and performance of the company
Mechanisms to ensure that management fulfills its basic purpose: to promote the long-term interests of the shareholders
Primary Participants:
Shareholders
Board of Directors
Senior Management

Arises because of separation of ownership
(principals) and management (agents)
Management may act to promote their own interests at the expense of the interests of stockholders (opportunistically)

 Internal
 Responsible BOD
 Active shareholders
Management Compensation
 External
 Takeover constraint
 Auditors
 Banks and investment analysts
 Regulations
 Media and public activists