STRATEGIC MANAGEMENT LESSON 2 FORMULATING THE VISION, MISSION, AND VALUES

1. STRATEGIC MANAGEMENT LESSON 2 FORMULATING THE VISION, MISSION, AND VALUES

2. VISION and MISSION The vision and mission provide a framework for all stakeholders (employees, current and prospective customers, current and prospective investors, even the public) to delineate the organization’s strategic course and purpose. The vision and mission should be: • Broad; • Distinct, direct, and specific (to the organization); • Real and meaningful; • Motivational; • Translatable into goals and objectives; • Indicative of organizational values; • Clear as to identity, purpose, and reason for being; and • Linked.

3. ORGANIZATIONAL VISION Agreement on the vision for which the organization strives to achieve in the long run is critically important to its success. It focuses upon: • What/who the organization aspires to become; • Commonality of interests; • The purpose of daily challenge! Motivation! Action! • Opportunity; • Reasonable and feasible; • A strategic course and long-term direction; • Clarity and easy to remember.

4. ORGANIZATIONAL VISION The payoff for a clear statement of vision: • Clarifies the perception of direction (from top to bottom of • the organization); • Works as a common guide for decision-making; • Serves as a tool to support change; • Guides functional level planning; • Offers insight into the future and preparations necessary to • achieve long-term goals.

5. EXAMPLES OF VISION STATEMENTS Good vision statements are: • graphic, • focused, • flexible, • feasible, and • memorable.

6. Our vision serves as the framework for our roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality, and growth. This is done through our: • People – Be a great place to work. • Portfolio – Bring to the world a portfolio of quality beverage • brands. • Partners – Nurture a winning network of customers, and • suppliers to achieve enduring value. • Planet – Be a responsible citizen that makes a difference by • helping build and support sustainable communities. • Profit – Maximum long-term return to shareholders. • Productivity – Be a highly effective, lean, and fast-moving • organization.

7. TULIP GROVE BAPTIST CHURCH (A Nonprofit Organization) The Vision of Tulip Grove Baptist Church is to be the people of God, on mission with God, motivated by a love for God, and a love for others.

8. U.S. GEOLOGICAL SURVEY (USGS) (A U.S. Government Agency) The Vision of USGS is to be a world leader in the natural sciences through our scientific excellence and responsiveness to society’s needs.

9. ORGANIZATIONAL MISSION Whereas the vision statement defines the future strategic course of an organization, i.e. its direction and aspirations for the future, the mission statement specifies the organization’s current business and purpose. It focuses upon: • Who we are; • What we do; • Who we do it for; • Why we are here. *90% of all companies have used a mission statement in the previous five years (Prentice-Hall, 2007).

10. ORGANIZATIONAL MISSION The payoff for a clear statement of mission: • Identifies the organization’s products and services; • Specifies the buyer’s needs and wants it seeks to satisfy; • Identifies the customer groups and/or markets it endeavors • to serve; • Specifies the approach to pleasing customers; • Gives the organization its own identity (differentiates and • positions); • Reconcile the interests among diverse stakeholders; • A lead-in to setting of goals and objectives; • Generate strategic alternatives; • Support the image of the organization.

11. EXAMPLES OF MISSON STATEMENTS Good mission statements are: • Clear; • Concise (but broad in scope); • Short; • Easy to understand; • Focused; • Memorable; • Motivators!

12. Dell’s mission is to be the most successful computer company in the world at delivering the best customer service in markets we serve. In doing so, Dell will meet customer expectations of: • Highest quality; • Leading technology; • Competitive pricing; • Accountability; • Best in class service and support; • Flexible customization capability; • Superior corporate citizenship; • Financial stability.

13. TARRANT COUNTY ASSOCIATION FOR THE BLIND (A Nonprofit Organization) The mission of Lighthouse for the Blind of Fort Worth, a nonprofit organization, is to provide services to assist legally and totally blind individuals to achieve their highest level of personal and economic self-sufficiency consistent with their specific skills, general abilities and interests.

14. U.S. Department of Interior (DOI) (A U.S. Government Agency) Our Mission is: Protecting America’s Great Outdoors and Powering Our Future The U.S. Department of the Interior protects America’s natural resources and heritage, honors our cultures and tribal communities, and supplies the energy to power our future.

15. LINKING VISION AND MISSION TO ORGANIZATIONAL CORE VALUES The core values of the organization relate to: • Beliefs; • Traits; • Behavioral norms.

16. CORE VALUES Core values flow from and are supported by the vision and mission of the organization. Vision and mission statements refer to these core values as they portray (among others): • Fair treatment of stakeholders (employees, customers, investors); • Shareholder value; • Integrity; • Ethical behavior; • Diversity; • Innovation; • Trust; • Quality; • Customer service; • Relationships; • Social responsibility; • Community citizenship.

17. CORE VALUES Smart leaders are committed to a corporate culture that supports and encourages the desired beliefs, traits, and behavioral norms that characterize the values of organization. They ensure that the vision, mission, and ensuing strategy is continually crafted to match these values as they link and work together to achieve organizational success.