Your SlideShare is downloading. ×
0
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Building an Enduring Corporate Vision
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Building an Enduring Corporate Vision

644

Published on

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go …

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/building-an-enduring-corporate-vision-236


Building an Enduring Corporate Vision: Core Ideology and Envisioned Future

There are some companies with exceptionally durable visions that have been built to last. What distinguishes their visions from most others?

This document explains a framework around building an enduring company vision, developed by business professors James Collins and Jerry Porras. There are two key components to an enduring corporate vision:

*Core Ideology. The Core Ideology defines a company's timeless character--it is the glue that olds the organization together even when everything else is subject to chain. This core is comprised 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 be
like to achieve those BHAGs.

A company's Core Ideology and Envisioned Future are two distinct
concepts. A BHAG is a clearly articulated goal that takes 10 to 30
years to reach--whereas our Core Purpose can never be completed.

In this presentation, we break down the process of constructing a
company?s vision in detail. PowerPoint templates are also included for you
to use in your own analyses and presentations.

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
644
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Crowdsourced Business Presentation Design Service Building an Enduring Corporate Vision Core Ideology and Envisioned Future June 20, 2013 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. ORIGINAL PROJECT DETAILS http://pptlab.com/ppt/HBR-Building-Your-Companys-Vision-18
  • 2. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 3 Contents  Overview 4  Core Ideology 9  Envisioned Future 24  Case Example 35  Templates 37
  • 3. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 5 This document discusses the science and art behind building an enduring corporate vision Executive Summary There are some companies with exceptionally durable visions that have been built to last. What distinguishes their visions from most others? This document explains a framework around building an enduring company vision, developed by business professors James Collins and Jerry Porras. There are two key components to an enduring corporate vision: • Core Ideology. The Core Ideology defines a company’s timeless character—it is the glue that olds the organization together even when everything else is subject to chain. This core is comprised 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 be like to achieve those BHAGs. A company’s Core Ideology and Envisioned Future are two distinct concepts. A BHAG is a clearly articulated goal that takes 10 to 30 years to reach—whereas our Core Purpose can never be completed. In this presentation, we break down the process of constructing a company’s vision in detail. PowerPoint templates are also included for you to use in your own analyses and presentations. CORE IDEOLOGY ENVISIONED FUTURE
  • 4. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 7 There are many vague, descriptive definitions for vision—the one we define is structured and consists of Core Ideology and an Envisioned Future What is Vision? (2 of 2) Deeply Held Values Outstanding Achievement Exhilarating Goals Motivating Forces Societal Bonds CORE IDEOLOGY ENVISIONED FUTURE CONVENTIONAL DEFINITION OF VISION STRUCTURE DEFINITION OF VISION CHARACTERISTICS COMPONENT(S) • Conventionally, vision has been described in vague, unstructured, and descriptive terms • ―Vision‖ is an abstract concept with numerous interpretations • We define vision in a well- conceived, structured, and prescriptive manner • Vision consists of 2 components: • Core Ideology • Envisioned Future  
  • 5. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 9 Contents  Overview  Core Ideology  Envisioned Future  Case Example  Templates
  • 6. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 11 Our Core Ideology consists of Core Values and Core Purpose Core Values and Core Purpose CORE IDEOLOGY ENVISIONED FUTURE CORE VALUES  Core Values are the handful of guiding principles by which a company navigations  They require no external justification  Instead of changing its Core Values, a great company will change its markets in order to remain true to its Core Values CORE PURPOSE  The Core Purpose is an organization’s most fundamental reason for being  It’s not to be confused with the organization’s current product lines or customer segments—rather, it reflects employee’s idealistic motivations for doing the company’s work 1 2 CORE IDEOLOGY
  • 7. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 13 Here are several examples of enduring companies with enduring values Core Values – Examples (1 of 2) CORE IDEOLOGY ENVISIONED FUTURE CORE 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 creativity
  • 8. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 15 Who should be involved in articulating the Core Values of our company? Mars Group Exercise (1 of 2) CORE IDEOLOGY ENVISIONED FUTURE CORE VALUES An organization’s values may vary with its size, age, and geography. In such a state, how do we determine who should be involved in articulating an organization’s Core Values? Use an exercise called Mars Group. Mars Group: • It works like this: imagine that you’ve been asked to recreate the very attributes of our organization on another planet, but you have seats on the spaceship for only 5-7 people • Whom should you send? Invariably, the selected ―Mars Group‖ is composed of highly credible representatives that represent the company’s genetic code.
  • 9. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 17 The Core Purpose is the organization’s reason for being Core Purpose Definition DEFINITION Core Purpose is the organization’s reason for being. • An effective Core Purpose reflects employees’ idealistic motivations for doing the company’s work • The Core Purpose doesn’t just describe the organization’s output or target consumers—it captures the soul and essence of the organization • The Core Purpose should last at least 100 years • It should not be confused with specific goals or corporate strategies (which should change many times in 100 years) • A Core Purpose cannot be fulfilled—it is to be forever pursued, but never attained • The very fact that the core Purpose can never fully realized implies that an organization can never stop stimulating change and progress DETAILS CORE IDEOLOGY ENVISIONED FUTURE CORE PURPOSE
  • 10. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 19 Here are several examples of enduring companies and their Core Purposes Core Purpose Examples (1 of 2) CORE IDEOLOGY ENVISIONED FUTURE CORE PURPOSE 3M  To solve unsolved problems innovatively Cargill  To improve the standard of living around the world Fannie Mae  To strengthen the social fabric by continually democratizing home ownership Hewlett-Packard  To make technical contributions for the advancement and welfare of humanity Lost Arrow Corporation  To be a role model and a tool for social change Pacific Theatres  To provide a place for people to flourish and to enhance the community Mary Kay Cosmetics  To give unlimited opportunity to women McKinsey & Company  To help leading corporations and governments be more successful Merck  To preserve and improve human life Nike  To experience the emotion of competition, winning, and crushing competitors
  • 11. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 21 One powerful method for arriving at our Core Purpose is through asking the Five Whys Five Whys Exercise CORE IDEOLOGY ENVISIONED FUTURE CORE PURPOSE Start with a descriptive statement about our purpose. E.g., We make X products. Next, ask, Why is that important? Ask again, Why is that 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 the fundamental purpose of the organization • The Five Whys can help companies in any industry frame their work in a more meaningful way The Core Purpose never falls into the category of Maximizing Shareholder Value (SHV).
  • 12. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 23 You can utilize the Mars Group again to determine your organization’s Core Purpose Mars Group – Part Two CORE IDEOLOGY ENVISIONED FUTURE CORE PURPOSE Peter Drucker once asserted the most dedicated people are ultimately volunteers, as they have the opportunity to do something else with their lives. ? Another approach to extracting Core Purpose is to ask each member of the Mars Group… • How could we frame the purpose of this company, so that if you woke up tomorrow morning with enough cash in hand to retire, you would continue to work here? • What deeper sense of purpose would motivate you to continue to dedicate your precious creative energies to this organization’s efforts?
  • 13. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 25 With our Core Ideology defined, the second component is the Envisioned Future Envisioned Future – Overview CORE IDEOLOGY ENVISIONED FUTURE The Envisioned Future captures where we would like our organization in 10 to 30 years time. It consists of two components: vision-level, Big, Hairy, Audacious Goals (BHAGs) and the Envisioned Future. Creating an effective Envisioned Future requires a level of unreasonable confidence and commitment. The Envisioned Future should answer such questions as: • Does it get our juices flowing? • Do we find it stimulating? • Does it spur forward momentum? It should be exciting in its own right, such that I would continue to keep the organization motivated even if the original leadership who set the goal left. The concepts of Core Ideology and Envisioned Future should not be confused, as they are two distinct concepts. Managers often mistakenly exchange Core Purpose and BHAGs. Remember the Core Purpose is not a specific goal—it is the reason the company exists. The BHAG is a clearly articulate goal. The BHAG is reachable in 10 to 30 years. The Core Purpose can never be fulfilled Setting the Envisioned Future is a creative process. Identifying the Core Ideology is a discovery process.
  • 14. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 27 BHAG stands for Big, Hairy, Audacious Goal—it’s a strategic business statement focused on a transformative goal BHAG Overview CORE IDEOLOGY ENVISIONED FUTURE What is a BHAG? BHAG stands for Big, Hairy, Audacious Goal. It is a strategic business statement which is created to focus an organization on a single medium-long term organization- wide goal which is audacious, likely to be externally questionable, 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 unifying focal point of effort and acting as a catalyst for team spirit. It has a clear finish line, so the company can know when it has achieved the goal. People like to shoot for finish lines. A BHAG engages people. It is tangible, energizing, highly focused. People should get it right away—i.e. it requires little or no explanation. Most corporate statements do little to spur forward movement, because they do not contain the powerful mechanism of a BHAG. BHAG
  • 15. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 29 A BHAG generally falls under 1 of 4 categories Types of BHAGs ENVISIONED FUTURE CORE IDEOLOGYBHAG A vision-level BHAG requires 10 to 30 years of effort to complete. Target BHAGs can be quantitative or qualitative Common-enemy BHAGs involve David-vs- Goliath thinking Role-model BHAGs suit up-and-coming organizations Internal-transformation BHAGs suit large, established organizations 1 2 3 4
  • 16. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 31 Role-model BHAGs suit up-and-coming organizations (cont.) 2 Stanford University (1940s)  Become the Harvard of the West BHAGs often involve comparison with another organization, either as model or a competitor BHAG Examples ENVISIONED FUTURE CORE IDEOLOGYBHAG Common-enemy BHAGs involve David-vs-Goliath thinking 3 Philip Morris (1950s)  Knock off RJR as the number one tobacco company in the world Nike (1960s)  Crush Adidas Honda (1970s)  Yamaha wo tsubusu!  Translation: we will destroy Yamaha!
  • 17. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 33 The Vivid Description translates the BHAG into something engaging and tangible Vivid Description Overview ENVISIONED FUTURE CORE IDEOLOGY VIVID DESCRIPTION • A Vivid Description is as it sounds—it is a vibrant, engaging, and specific description of what it will be like to achieve the BHAG • You can think of it as translating the vision from words into pictures—of creating an image that people can carry around in their heads • Picture painting is essential for making the 10-to-30 year horizon BHAG tangible in people’s minds • Passion, emotion, and conviction are essential parts of the Vivid Description Some managers are uncomfortable expression strong emotion about their dreams— however, emotion is what motivates others.
  • 18. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 35 Contents  Overview  Core Ideology  Envisioned Future  Case Example  Templates
  • 19. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 37 Contents  Overview  Core Ideology  Envisioned Future  Case Example  Templates
  • 20. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 39 Insert Headline Yin Yang Diagram – TEMPLATE ALTERNATE CORE IDEOLOGY ENVISIONED FUTURE • Core Values • Core Purpose • 10-to-30 Year BHAG • Vivid Description
  • 21. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 41 CORE IDEOLOGY ENVISIONED FUTURE Insert Headline Case Example – TEMPLATE ALTERNATE CORE IDEOLOGY ENVISIONED FUTURE CORE VALUES •Filler text filler text filler text •Filler text filler text filler text •Filler text PURPOSE Filler text filler text filler text filler text filler text filler text filler text filler text BHAG Filler text filler text filler text filler text filler text filler text VIVID DESCRIPTION Filler text filler text filler text filler text filler text filler text filler text
  • 22. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 43 Insert Headline Mars Group – TEMPLATE NAME Role • Filler text filler text filler text • Filler text filler text filler text NAME Role • Filler text filler text filler text • Filler text filler text filler text NAME Role • Filler text filler text filler text • Filler text filler text filler text NAME Role • Filler text filler text filler text • Filler text filler text filler text NAME Role • Filler text filler text filler text • Filler text filler text filler text NAME Role • Filler text filler text filler text • Filler text filler text filler text NAME Role • Filler text filler text filler text • Filler text filler text filler text
  • 23. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 45 PPT Lab (www.pptlab.com) is the only crowdsourced presentation design service. Get consulting-quality presentations 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 by submitting your own presentation projects to our team. All presentations will be created by a team of management consultants and follow the Consulting Presentation Framework. www.PPTLab.com support@pptlab.com
  • 24. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com

×