2. The Business Vision & Mission

1. 2. The Business Vision & Mission DR. KHADIJAH OMAR UMT

2. Introduction • We perhaps can best understand vision and mission by focusing on a business when it is first started. • Vision and mission statements often can be found in the front of annual report • Research conclude that companies have used a mission statement sometime in the previous five years

3. Vision • ‘what do we want to become’ • Vision statement should be establish first and foremost • Preferably in a single sentence • Go to page 76 for examples

4. Mission • ‘What is our business’ • Sometimes called ‘reason for being’ or creed statement • Some firms develop mission statement simply because they feel it is fashionable rather than commitment

5. Should revisit vision and mission statements to realize benefits • Review, reword and reaffirm the firm’s vision and mission

6. The ways of developing vision and mission statements • commonly done – select articles about these statements and read • ask managers to prepare for the statements • then these statements merge into a single document and the draft will be distribute to all managers • the modification done (addition, deletion) • Some firms use discussion group or hire consultants to develop or modify existing statement

7. Importance of Vision and Mission • Ensure unanimity of purpose • Provide basis for allocating resources • Establish general tone/climate • Serve as a focal point • Facilitate the translation of objectives into work structure • To specify organizational purpose

8. Characteristics of a mission statement • A mission statement should portray: • A declaration of attitude • A customer orientation • 9 components of an effective statement

9. A declaration of attitude • Mission statement are not designed to express concrete ends, rather to provide motivation, direction, image, tone, and philosophy. • Vagueness leaves rooms to fill in details and modify the general. • Mission should not be too lengthy. • Broad in scope to allow generation/consideration of alternatives and reconcile the differences • An effective mission statement generates the impression that a firm is successful, has direction, and is worthy of time, support and investment

10. A customer orientation • A major reason for developing mission statement is to attract customers who give meaning to organization • Good mission statements identify the utility of a firm’s products/service to its customers • (AT&T’s mission statement focuses on telecommunication rather than telephone and EXXON mobil’s mission statement focuses on energy rather than oil and gas)

11. General characteristics of a good mission statement • Broad in scope • Less than 250 words • Inspiring • Identify the utility of firm’s product • Reveal the firm’s social responsibility • Reveal the firm’s environmental responsibility • Include 9 necessary components • Enduring

12. Mission Statement 9 Components • Customers - who are the firm’s customers? • Products or services – firm’s major products /services? • Markets –geographically where does firm compete? • Technology – current? • Concern for survival, growth and profitability – committed to growth and financial soundness?

13. Mission Statement 9 Components • Philosophy– basic beliefs, values, aspirations, ethics? • Self-concept – distinctive competence or competitive advantage? • Concern for public image – responsive to social, community and environmental concern? • Concern for employees – are employees valuable assets to the firm?

14. Writing and evaluating mission statements • There is no one best mission statement for a particular organization, so good judgment is required in evaluating mission statement • A better mission statement is when it has more of the nine components in it and clear

15. Ten benefits of having clear mission and vision • 1.achieve clarity of purpose • 2.provide basis for all other strategic planning activities • 3.provide direction • 4.provide focal point for all stakeholders • 5.Resolve divergent views

16. 6.promote a sense of shared expectations • 7.Project a sense of worth and intent to all stakeholders • 8.Project an organized, motivated organization worthy of support • 9.Achieve higher organizational performance • 10.Achieve organizational synergy among employees and managers

17. Go to page 85 (Table 2-4) • Essential components of a mission statement

18. Go to page 75 (table 2-1) • Which mission statement is the best/worst?

19. The End TQVM