Building an Enduring Corporate Vision

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This presentation discusses the framework of constructing an enduring Corporate Vision. It covers topics of Core Ideology, Envisioned Future, BHAGs, Core Values, Mars Group, Five Whys, and other related concepts. Includes case examples and a set of PowerPoint templates for use in your own analyses and presentations. Presentation largely based on the HBR article, Building Your Company’s Vision.

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Building an Enduring Corporate Vision

  1. 1. Crowdsourced BusinessPresentation Design ServiceBuilding an Enduring Corporate VisionCore Ideology and EnvisionedFutureJune 19, 2013This presentation discusses the framework of constructing an enduring CorporateVision. It covers topics of Core Ideology, Envisioned Future, BHAGs, Core Values,Mars Group, Five Whys, and other related concepts. Includes case examples and aset of PowerPoint templates for use in your own analyses and presentations.Presentation largely based on the HBR article, Building Your Company’s Vision.ORIGINAL PROJECT DETAILShttp://pptlab.com/ppt/HBR-Building-Your-Companys-Vision-18
  2. 2. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 2PPT Lab (www.pptlab.com) is the only crowdsourcedpresentation design service. Get consulting-qualitypresentations at a fraction of the cost!Each month, we will create well over 50 slides of for our members.As a member, you will drive what business slides we create bysubmitting your own presentation projects to our team. Allpresentations will be created by a team of managementconsultants and follow the Consulting Presentation Framework.www.PPTLab.comsupport@pptlab.com
  3. 3. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 3Contents Overview 4 Core Ideology 9 Envisioned Future 24 Case Example 35 Templates 37
  4. 4. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 4This document discusses the science and art behind building an enduringcorporate visionExecutive SummaryThere are some companies with exceptionally durable visions that have been built to last. Whatdistinguishes their visions from most others?This document explains a framework around building an enduring company vision, developed bybusiness professors James Collins and Jerry Porras. There are two key components to an enduringcorporate vision:• Core Ideology. The Core Ideology defines a company’s timeless character—it is the glue thatolds the organization together even when everything else is subject to chain. This core iscomprised of Core Values and a Core Purpose.• Envisioned Future. The Envisioned Future is comprised of Big, Hairy,Audacious Goals (BHAGs) and a Vivid Description of what it will belike to achieve those BHAGs.A company’s Core Ideology and Envisioned Future are two distinctconcepts. A BHAG is a clearly articulated goal that takes 10 to 30years to reach—whereas our Core Purpose can never be completed.In this presentation, we break down the process of constructing acompany’s vision in detail. PowerPoint templates are also included for youto use in your own analyses and presentations.COREIDEOLOGYENVISIONEDFUTURETHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  5. 5. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 5There are many vague, descriptive definitions for vision—the one we defineis structured and consists of Core Ideology and an Envisioned FutureWhat is Vision? (2 of 2)Deeply HeldValuesOutstandingAchievementExhilaratingGoalsMotivatingForcesSocietal BondsCOREIDEOLOGYENVISIONEDFUTURECONVENTIONALDEFINITION OFVISIONSTRUCTUREDEFINITION OFVISIONCHARACTERISTICS COMPONENT(S)• Conventionally, vision has beendescribed in vague, unstructured,and descriptive terms• “Vision” is an abstract conceptwith numerous interpretations• We define vision in a well-conceived, structured, andprescriptive manner• Vision consists of 2 components:• Core Ideology• Envisioned FutureTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  6. 6. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 6Our Core Ideology consists of Core Values and Core PurposeCore Values and Core PurposeCOREIDEOLOGYENVISIONEDFUTURECORE VALUES Core Values are the handful of guiding principles bywhich a company navigations They require no external justification Instead of changing its Core Values, a great companywill change its markets in order to remain true to its CoreValuesCORE PURPOSE The Core Purpose is an organization’s mostfundamental reason for being It’s not to be confused with the organization’s currentproduct lines or customer segments—rather, it reflectsemployee’s idealistic motivations for doing thecompany’s work1 2COREIDEOLOGYTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  7. 7. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 7The Core Values are the essential and enduring tenets of anorganizationCore Values – DefinitionCOREIDEOLOGYENVISIONEDFUTURECORE VALUESDEFINITIONCore Values are the essential and enduring tenets of an organization.• Core Values require no external justification—they have intrinsic value and importance tothose inside the company• A great company decides for itself what values it holds to be core—largely independent of thecurrent environment, competitive requirements, or management fads• Organizations tend to have only a few Core Values—usually 3-5• Core Values stand the test of time• To identify the Core Values of our organization, we must push with relentless honesty todefine what values are truly central• Ralph Larsen, former CEO of Johnson & Johnson, said: “The core values embodied in ourcredo might be a competitive advantage, but that is not why we have them. We have thembecause they define for us what we stand for, and we hold them even if they became acompetitive disadvantage in certain situations.”DETAILSTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  8. 8. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 8Here are several examples of enduring companies withenduring valuesCore Values – Examples (1 of 2)COREIDEOLOGYENVISIONEDFUTURECORE VALUES Corporate social responsibility Unequivocal excellence in all aspects of the company Science-based innovation Honesty and integrity Profit, but profit from that benefits humanity Service to the company above all else Hard work and individual productivity Never being satisfied Excellence in reputation; being part of something special The right to freedom of choice Winning—beating others in a good fight Encouraging individual initiative Opportunity based no metric—no one is entitled to anything Hard work and continuous self improvement Elevation of the Japanese culture and national status Being a pioneer—not following others, doing the impossible Encouraging individual ability and creativityTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  9. 9. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 9Who should be involved in articulating the Core Values ofour company?Mars Group Exercise (1 of 2)COREIDEOLOGYENVISIONEDFUTURECORE VALUESAn organization’s valuesmay vary with its size, age,and geography.In such a state, how do wedetermine who should beinvolved in articulating anorganization’s CoreValues?Use an exercise calledMars Group.Mars Group:• It works like this: imagine that you’ve been asked torecreate the very attributes of our organization on anotherplanet, but you have seats on the spaceship for only 5-7people• Whom should you send?Invariably, the selected “Mars Group” is composed of highly credible representativesthat represent the company’s genetic code.THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  10. 10. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 10Who should be involved in articulating the Core Values ofour company?Mars Group Exercise (2 of 2)COREIDEOLOGYENVISIONEDFUTURECORE VALUESThe Mars Group needs to address thesefundamental questions: What Core values do you personally bring to your work? What would you tell your children are the Core Values that you hold at workand that you hope they will hold when they become working adults? If you awoke tomorrow morning with enough money to retire for the rest ofyour life, would you continue to live those Core Values? Can you envision them being as valid for you 100 years from now as theyare today? Would you want to hold those Core Values, even if at some point one ormore of them become a competitive disadvantages? If you were to start a new organization tomorrow in a different line of work,what Core Values would you build into the new organization regardless of itsindustry?These last 3 questions are particularly important, because they make the crucialdistinction between enduring values and practices that should be constantlychanging.? THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  11. 11. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 11Here are several examples of enduring companies and theirCore PurposesCore Purpose Examples (1 of 2)COREIDEOLOGYENVISIONEDFUTURECORE PURPOSE3M  To solve unsolved problems innovativelyCargill  To improve the standard of living around the worldFannie Mae  To strengthen the social fabric by continually democratizing home ownershipHewlett-Packard  To make technical contributions for the advancement and welfare of humanityLost Arrow Corporation  To be a role model and a tool for social changePacific Theatres  To provide a place for people to flourish and to enhance the communityMary Kay Cosmetics  To give unlimited opportunity to womenMcKinsey & Company  To help leading corporations and governments be more successfulMerck  To preserve and improve human lifeNike  To experience the emotion of competition, winning, and crushing competitorsTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  12. 12. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 12One powerful method for arriving at our Core Purpose isthrough asking the Five WhysFive Whys ExerciseCOREIDEOLOGYENVISIONEDFUTURECORE PURPOSEStart with a descriptivestatement about ourpurpose.E.g., We make X products.Next, ask, Why isthat important?Ask again, Why isthat important? Why?1 2 3 4 5 6• Ask “Why is that Important?” five times• After a few Whys, you’ll find that we’re getting down to thefundamental purpose of the organization• The Five Whys can help companies in any industry frame theirwork in a more meaningful wayThe Core Purpose never falls into the category of Maximizing Shareholder Value(SHV).THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  13. 13. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 13You can utilize the Mars Group again to determine yourorganization’s Core PurposeMars Group – Part TwoCOREIDEOLOGYENVISIONEDFUTURECORE PURPOSEPeter Drucker once asserted the most dedicated people are ultimately volunteers, asthey have the opportunity to do something else with their lives.?Another approach to extracting Core Purpose is to ask eachmember of the Mars Group…• How could we frame the purpose of this company, sothat if you woke up tomorrow morning with enoughcash in hand to retire, you would continue to workhere?• What deeper sense of purpose would motivate you tocontinue to dedicate your precious creative energiesto this organization’s efforts?THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  14. 14. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 14Envisioned Future is composed of a Vision-level BHAG anda Vivid DescriptionEnvisioned Future ComponentsVISION-LEVEL BHAG The vision-level BHAG (pronounced BEE-hag) is a toolto stimulate progress Whereas all companies have goals, the BHAG is uniquein that it is a huge, daunting challenge A true BHAG is clear and compelling, serves as aunifying focal point of effort, and acts as a catalyst forteam spiritVIVID DESCRIPTION The Vivid Description is a vibrant, engaging, andspecific description of what it will be like to achieve theBHAGs They make the BHAGs tangible1 2COREIDEOLOGYENVISIONEDFUTUREENVISIONEDFUTURETHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  15. 15. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 15BHAG stands for Big, Hairy, Audacious Goal—it’s a strategicbusiness statement focused on a transformative goalBHAG OverviewCOREIDEOLOGYENVISIONEDFUTUREWhat is a BHAG?BHAG stands for Big, Hairy, Audacious Goal. It is astrategic business statement which is created to focus anorganization on a single medium-long term organization-wide goal which is audacious, likely to be externallyquestionable, but not internally regarded as impossible.Visionary companies often use bold missions—i.e. BHAGs—as a powerful way to stimulate progress.A true BHAG is clear and compelling, serving as a unifyingfocal point of effort and acting as a catalyst for team spirit.It has a clear finish line, so the company can know when ithas achieved the goal. People like to shoot for finish lines.A BHAG engages people. It is tangible, energizing, highlyfocused. People should get it right away—i.e. it requireslittle or no explanation.Most corporate statements do little to spur forwardmovement, because they do not contain the powerfulmechanism of a BHAG.BHAGTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  16. 16. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 16Here are several guiding principles when constructing ourBHAGsBHAG Guiding PrinciplesCOREIDEOLOGYENVISIONEDFUTUREBHAG Setting the vision-level BHAG far into the future requires thinking beyond the currentcapabilities of the organization and the current competitive environment Inventing such a goal forces our executive team to be visionary—rather than strategic ortactical A BHAG should not be a sure bet—it will carry perhaps only a 50% to 70% probability ofsuccess Even though a BHAG is not a sure bet, the organization must believe that it can reach thegoal anywayTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  17. 17. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 17A BHAG generally falls under 1 of 4 categoriesTypes of BHAGsENVISIONEDFUTURECOREIDEOLOGYBHAGA vision-level BHAG requires 10 to 30 years of effort to complete.Target BHAGs can be quantitative orqualitativeCommon-enemy BHAGs involve David-vs-Goliath thinkingRole-model BHAGs suit up-and-comingorganizationsInternal-transformation BHAGs suit large,established organizations1 23 4THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  18. 18. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 18Target BHAGs can be quantitative or qualitative1Wal-Mart(1990) Become a $125B company by the year 2000Ford Motor Company(early 1900s) Democratize the automobileCity Bank(Predecessor to Citicorp,1915) Become the most powerful, the most serviceable, the most far reachingworld financial institution that has ever beenBoeing(1950) Become the dominant player in the commercial aircraft and being theworld into the jet ageA BHAG can be either quantitative or qualitativeBHAG ExamplesENVISIONEDFUTURECOREIDEOLOGYBHAGRole-model BHAGs suit up-and-coming organizations2Giro Sport Design(1986) Become the Nike of the cycling industryWatkins-Johnson(early 1900s) Become as respected in 20 years as Hewlett-Packard is todayTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  19. 19. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 19Here are a couple examples of Vivid Descriptions and theircorresponding BHAGsVivid Description ExamplesENVISIONEDFUTURECOREIDEOLOGYVIVIDDESCRIPTIONBHAG: Democratize the automobileVivid Description:I will build a motor car for the great multitude.... It will be so low in price that no man making a good salary will be unable to own one and enjoy with his family the blessing of hours of pleasure in Gods great open spaces.... When Im through, everybody will be able to afford one, and everyone will have one. The horse will have disappeared from our highways, the automobile will be taken for granted [and we will] give a large number of men employment at good wages.BHAG: Transform from a chemical manufacturer into one of the preeminent drug-makingcompanies in the world, with a research capability to rival any major universityVivid Description:We believe that research work carried on with patience and persistence will bring to industry and commerce new life; and we have faith that in this new laboratory, with the tools we have supplied, science will be advanced, knowledge increased, and human life win ever a greater freedom from suffering and disease.... We pledge our every aid that this enterprise shall merit the faith we have in it. Let your light so shine -- that those who seek the Truth, that those who toil that this world may be a better place to live in, that those who hold aloft that torch of science and knowledge through these social and economic dark ages, shall take new courage and feel their hands supported.THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  20. 20. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 20CORE IDEOLOGY ENVISIONED FUTUREPutting it all together… here is a breakdown of Sony’s Core Ideology andEnvisioned Future in the 1950sCase Example – Sony in the 1950sCOREIDEOLOGYENVISIONEDFUTURECORE VALUES•Elevation of the Japanese culture andnational status•Being a pioneer (not following others,doing the impossible)•Encouraging individual ability and creativityPURPOSETo experience the sheer joy of innovationand the application of technology for the benefit andpleasure of the general publicBHAGBecome the companymost known for changing theworldwide poor-quality image ofJapanese productsVIVID DESCRIPTIONWe will create the products that become pervasive around the world… We will be the first Japanese company to go into the U.S. market and distribute directly… We will succeed with innovations that U.S. companies have failed at—such as the transistor radio… Fifty years from now, our brand name will be as well known as any in the world… and will signify innovation and quality that rival the most innovative companies anywhere… “Made in Japan” will mean something fine, not something shoddy.THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  21. 21. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 21Insert HeadlineYin Yang Diagram – TEMPLATE ALTERNATECORE IDEOLOGYENVISIONED FUTURE• Core Values• Core Purpose• 10-to-30 Year BHAG• Vivid DescriptionTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  22. 22. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 22Insert HeadlineCase Example – TEMPLATECOREIDEOLOGYENVISIONEDFUTURECORE VALUESPURPOSEBHAGVIVID DESCRIPTION• Filler text filler text filler text• Filler text filler text• Filler text filler text filler text• Filler text filler text• Filler text filler text filler text• Filler text filler text• Filler text filler text filler text• Filler text filler textTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  23. 23. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 23CORE IDEOLOGY ENVISIONED FUTUREInsert HeadlineCase Example – TEMPLATE ALTERNATECOREIDEOLOGYENVISIONEDFUTURECORE VALUES•Filler text filler text filler text•Filler text filler text filler text•Filler textPURPOSEFiller text filler text filler text filler text fillertext filler text filler text filler textBHAGFiller text filler text fillertext filler text filler text filler textVIVID DESCRIPTIONFiller text filler text filler text filler text fillertext filler text filler textTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  24. 24. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 24Insert HeadlineFive Whys – TEMPLATEInsert descriptive statement about company’s purposeWhy is this important?•Filler text filler text filler text filler text filler text filler text filler text•Filler text filler text filler text filler text filler text filler text filler textWhy is this important?•Filler text filler text filler text filler text filler text filler text filler text•Filler text filler text filler text filler text filler text filler text filler textWhy is this important?•Filler text filler text filler text filler text filler text filler text filler text•Filler text filler text filler text filler text filler text filler text filler textWhy is this important?•Filler text filler text filler text filler text filler text filler text filler text•Filler text filler text filler text filler text filler text filler text filler textWhy is this important?•Filler text filler text filler text filler text filler text filler text filler text•Filler text filler text filler text filler text filler text filler text filler text12345THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  25. 25. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 25Insert HeadlineMars Group – TEMPLATENAMERole• Filler text filler text filler text• Filler text filler text filler textNAMERole• Filler text filler text filler text• Filler text filler text filler textNAMERole• Filler text filler text filler text• Filler text filler text filler textNAMERole• Filler text filler text filler text• Filler text filler text filler textNAMERole• Filler text filler text filler text• Filler text filler text filler textNAMERole• Filler text filler text filler text• Filler text filler text filler textNAMERole• Filler text filler text filler text• Filler text filler text filler textTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  26. 26. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 26Insert HeadlineMars Group – TEMPLATE ALTERNATEINSERT NAME INSERT NAMEINSERT NAMEINSERT NAME INSERT NAMEINSERT NAME INSERT NAME• What Core values do you personallybring to your work?• What would you tell your children arethe Core Values that you hold atwork and that you hope they will holdwhen they become working adults?• If you awoke tomorrow morning withenough money to retire for the restof your life, would you continue tolive those Core Values?• Can you envision them being asvalid for you 100 years from now asthey are today?• Would you want to hold those CoreValues, even if at some point one ormore of them become a competitivedisadvantages?• If you were to start a neworganization tomorrow in a differentline of work, what Core Values wouldyou build into the new organizationregardless of its industry?THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  27. 27. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 27PPT Lab (www.pptlab.com) is the only crowdsourcedpresentation design service. Get consulting-qualitypresentations at a fraction of the cost!Each month, we will create well over 50 slides of for our members.As a member, you will drive what business slides we create bysubmitting your own presentation projects to our team. Allpresentations will be created by a team of managementconsultants and follow the Consulting Presentation Framework.www.PPTLab.comsupport@pptlab.com

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