Strategic ManagementBHRM 31124 R.A.IshankaChathurani Lecturer (prob) Department of Human Resource Management Faculty of Commerce & Management Studies University of Kelaniya
Vision, Mission, Goals and Objectives Learning outcomes After completing of this topic, students should be able to, Describe the nature and role of vision, mission, goals and objectives in strategic management Identity the components of mission statement Discuss how clear vision and mission statements can be benefit other strategic management activities Evaluate mission statements in different organizations Develop good vision and mission statements
What is vision? :- What do we want to become? Foresight or power of seeing Vision must focus on future Serve as a concrete foundation for the organization Vision never change but it serves as an enduring promise-remained fixed
Vision A strategic thinker should have a good vision for the future. This has three aspects. They are, What the business is now What it could be in the ideal world What the ideal world would be like
Problems with vision It ignores real, practical problems It can generate into wishful thinking
Benefits of a vision A vision enhances a wide range of performance measures A vision promote change A vision provides the basis for a strategic plan A vision motivates individuals and facilitates the recruitment of talents A vision helps keeping decision making in context
Examples for Vision statements "All Sri Lankans seamlessly connected with world-class information, communication and entertainment services.“ (Sri Lanka Telecom)
Mission :- What is our business? Organizations basic function in society, in terms of the products and services it produces for its clients’ (Mintzberg)
Captures the essence of why the organization
exists – Who we are, what we do
Explains the basic needs that you fulfill
Expresses the core values of the organization
Should be brief and to the point
Easy to understand
If possible, try to convey the unique nature of your
organization and the role it plays that differentiates it from others
Components of a of Mission Customers – Who are the firm’s customers? Products or services – What are the firm’s major products or services? Markets – Geographically ,where does the firm operating? Technology – Is the firm technologically current? Concern for survival, growth and profitability – Is the firm committed to growth and financial soundness?
Cont…Components of a of Mission Philosophy – What are the basic beliefs, values, aspirations and ethical priorities of the firm? Self-concept – What is the firm’s distinctive competence or major competitive advantage? Concern for public image – Is the firm responsive to social, community and environmental concern? Concern for employees – Are employees a valuable asset of the firm?
Characteristics of Mission Statement Brevity Flexibility Distinctiveness
The importance of mission Values and feelings are integral elements of consumers’ buying decisions, as evidenced by advertising, branding and market research. Customers not only ask ‘What do you sell? But What do you stand for? To motivate employees Many firms take mission seriously in strategic management
Examples for Mission statements "Your trusted and proven partner for innovative and exciting communication experiences delivered with passion, quality and commitment“ (Sri Lanka Telecom)
Examples – Good and BadMission Statements NASA To Explore the Universe and Search for Life and to Inspire the Next Generation of Explorers Does a good job of expressing the core values of the organization. Also conveys unique qualities about the organization. Walt Disney Too vague and and unclear. Need more descriptive information about what makes the organization special. To Make People Happy
Evaluating Mission StatementAn evaluation matrix of mission statement (An Example)
The intention behind decisions or actions, the states of mind that derive individuals or collectives of individuals called organizations to do what they do (Minzberg)
Describes a future end-state – desired outcome that is supportive of the mission and vision.
Shapes the way ahead in actionable terms.
Best applied where there are clear choices about the future.
Puts strategic focus into the organization – specific ownership of the goal should be assigned to someone within the organization.
Examples of Goals Reorganize the entire organization for better responsiveness to customers We will partner with other businesses, industry leaders, and government agencies in order to better meet the needs of stakeholders across the entire value stream. Manage our resources with fiscal responsibility and efficiency through a single comprehensive process that is aligned to our strategic plan. Improve the quality and accuracy of service support information provided to our internal customers. Establish a means by which our decision making process is market and customer focus. Maintain and enhance the physical conditions of our public facilities.
Goal Congruence The goals sets fro different parts of the organization should be consistent with each other Eg :-
Objectives Relevant - directly supports the goal Compels the organization into action Specific enough so we can quantify and measure the results Simple and easy to understand Realistic and attainable Conveys responsibility and ownership Acceptable to those who must execute May need several objectives to meet a goal
Objectives are Specific Measurable Attainable Results-oriented Time –bounded
Types of Objectives Primary and Secondary objectives Long term objectives and short term objectives
Goals vs. Objectives
Major Components of theStrategic Plan / Down to Action Strategic Plan Action Plans Evaluate Progress Mission Why we exist Vision What we want to be Goals What we must achieve to be successful Specific outcomes expressed in measurable terms (NOT activities) Objectives O1 O2 Planned Actions to Achieve Objectives Initiatives AI3 AI2 AI1 Indicators and Monitors of success Measures M1 M2 M3 Targets T1 T1 T1 Desired level of performance and timelines