1. “BuilDing Company’s
Vision”
on Paper of James C Collins & Jerry I Porrar
Presented by :
Abhishek Rai ( 11Ex-002)
PGDM (Executive)
2011-12

2. Vision ::Why& what
Vision Why & what
Vision provides guidance about what core to
preserve and what future to stimulate
progress toward.
Core
Ideology
Vision
Envisioned
future

3. Vision :Yin-Yang
Core Ideology
• What we stand for
• Why we exist
Envisioned Future
• What we aspire to become, to
achieve, to create
• Something that will require
significant change and progress to
attain.

4. Core Ideology
Core Ideology
Core ideology provides the glue that
holds an organization together as it
Consistent
Identity
grows, decentralizes, diversifies,
expands globally and develops
workplace diversity”.
Leaders
Core
Core Core Technological
Ideology
Purpose Values Breakthrough
Manageme
nt fads

5. Core Values
Intrinsic values Belief of organization Timeless guiding principles
• Mostly visionary company have three to five core values.
How to find core Values ?
• Ask relentlessly and honestly what values are truly central.
• Ask about each one , if the circumstances changed and penalized us for
holding this core value, would we still keep it.
• “ A company should not change its core values in respect to market
changes ; rather it should change markets, if necessary, to remain true to
its core values”.
Who should be involved in articulating the core values ?
• Mars Group : A representative slice of company’s genetic code.
Individual Organization
 If you awoke tomorrow with enough money to retire , would you continue to
work with core values ?
 Can you envision them being as valid for you 100 years from now ?
 Will you hold them even if they become competitive disadvantage ?

6. Core Purpose
Guiding star of horizon-
Reason for Soul of
Inspiration forever pursued , never
being organization
reached
“ Core purpose is reason for someone's existence not a goal or business
strategy”.
For Mckinsey & Company, purpose is not to do management consultancy but
help corporate and governments to be more successful.
Method of getting a purpose
“Five Whys” i.e. Why it is important ? Five time. After a few why, you will
come down to fundamental purpose of organization.
Can “Maximizing shareholders wealth” be purpose ?
Not possible as it cannot inspire people at all level of organization.
Mars Group
How could we frame the purpose of firm, so that if you work up tomorrow
morning with enough to retire, you would nevertheless keep working here.

7. Discovering Core Ideology
( You do not create or set it, you discover it)
• How ? By looking Inside.
• Core Ideology is to guide and inspire not to differentiate.
• The authenticity, the discipline and the consistency with which the ideology
is lived not- not the content of ideology- differentiate visionary companies
from the rest of the pack.
• Core ideology needs to be meaningful and inspirational only to the people
inside the organization, it need not be exciting to outsider.
• A clear ideology attracts people with compatible core values and repels
others.
• A company can have a strong core ideology without a formal statement.
• Don’t confuse core ideology with core competency.
• Core competency defines capabilities whereas Core ideology captures what
you stand for and why you exist.
• Core competency change over decades but core ideology does not.

8. Envisioned Future
10 to 30 years What it will be like to
Envisioned Future
audacious goal achieve the goal
• How ? By looking Inside.
• Core Ideology is to guide and inspire not to differentiate.
• The authenticity, the discipline and the consistency with which the ideology
is lived not- not the content of ideology- differentiate visionary companies
from the rest of the pack.

9. Vision Level BHAG ( Big, Hairy, Audacious Goals)
• Visionary companies often use goals as “Climbing Mount Everest”, to stimulate
progress & commitment to a huge-daunting challenge.
• A true BHAG is :
– Clear and compelling
– Serves as unifying focal point of effort
– Acts as catalyst of team spirit
– Has clear finish line
“Become a $ 125 billion company by the year 2000”
- [ Wal-Mart, 1990]
• A BHAG should not be a sure bet- it will have perhaps only a 50% to 70%
probability of success – but the organization must believe that it can reach the goal
anyways
• BHAG : Four Categories-
1. Target BHAGs
2. Common enemy BHAGs –”We will destroyy Yamaha”- [Honda 1970s]
3. Role-model BHAGs – “Become Harvard of the west”- [Stanford University, 1940s]
4. Internal Transformation BHAGs- “Transform this company from defense contractor to
best diversified company in world” – [Rockwell, 1995]

10. Vivid Description
What is Vivid description ?
Vibrant , engaging, and specific description of what it is like to
achieve BHAG
• In 1930s Merck has the BHAG to transform itself from a chemical manufacturer
into one of the preeminent drug-making companies of the world
• Passion, emotion and conviction are essential parts of the vivid description.

11. Envisioned future: Key points
• Don’t confuse core purpose with envisioned future as core purpose can never be
completed whereas the BHAG is reachable in 10 to 30 years.
“Did Shakespeare created the right Hamlet ? ”
• It makes no sense to analyze whether the envisioned future is the right one. It is
not prediction but creation and with a creation there can be no right answer.
“What about failure to realize the envisioned future ? ”
• Visionary companies set audacious goal but they still achieve them even without
larger than life leaders at helm.
• Success lies in process of lets try a lot of stuff and keep what works than by well
defined strategy.
• It is about building strength of organization as primary way of creating future.
We have arrived syndrome
• It is a complacent lethargy that arises once an organization achieves a BHAG and
fails to replace it with another.

12. Building a visionary company requires 1% vision
and 99 % alignment and for creating alignment
first step will always be recasting VISION.
“Thank you”