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SETTING ASPIRATION
CONTENT:
 Introduction
 Personal aspiration
 Organizational aspiration
 Aspiration and strategy
 Framework for analyzing aspiration
 Aspiration and business performance
 Using aspirations
 Setting aspiration
 Mission
 Vision
 Values
 Aspirations and brands
 Aspirations and the strategy process
 Perils of the misuse of aspirations
 conclusion
A hope or ambition of achieving something
 Personal aspiration
 Organizational aspiration
Connection between individuals motivation & behavior and organizational strategies
MISSION a purpose
VISION
A desired future
VALUES
,Why we exist
What is important to usWhat future we want to
create
MISSIONS:
George Orewell, an animal farmer:
“Making political writing in to an art”.
Patagonia:
“Build the best product, cause no unnecessary harm and use business to inspire
and implement solutions to the environmental crises.”
VISIONS:
Martin Luther King:
“I have a dream that my four children will one day live in a nation where they
will not be judged by the color of their skin but by the content of their character”.
Henry Ford:
I will build the motor car for the great multitude, it will be so low in price that no man
making good wages will be unable to own one and to enjoy with his family the blessing
of hour of pleasure GODs great open spaces..when I’m through everyone will be able to
afford one and everyone will have one
Henry Ford:
“I will build the motor car for the great multitude, it will be so low in price that no man making
good wages will be unable to own one and to enjoy with his family the blessing of hour of
pleasure GOD’s great open spaces. when I’m through everyone will be able to afford one and
everyone will have one”.
VALUES:
Evelyn Hall:
“I disapprove of what you say , but I will defend to the death your right to say it.”
Mark Zuckerberg:
“Hackers try to build the best services over the long term by quickly releasing
and learning from smaller iterations rather than trying to get everything right all
at once . We have the words Done is better than perfect painted on our walls.”
 An aspiration is a pre-requisite for a strategy.
 Organizational Aspirations provide the motivation.
 Organizational Aspiration emphasize the strategy.
 Organizational Aspirations provided both.
 Aspirations provide a valuable complement to strategy.
 Patagonias aspiration is both “motivational and strategic”.
 Fords aspiration is “strategic”.
ASPIRATION:
Strategy:
It is an integrated set of choices that positions the business in its industry so as to
create superior financial returns over the long run”
 An aspiration that is strategic will reflect some of the high levels choices the
organization has made about how to compete , but it will rarely articulate the
detailed strategy. If an aspiration does not contain any information about how
the organization chooses to compete, it will not strategic”.
 Aspiration is an important part of strategy.
 Aspiration is useful when:
 Shared by employees and when they complement a
carefully developed strategy based on understanding of
the business environment.
 Aspiration is useless when:
 It is poorly crafted like Enron ’s
PERSONALASPIRATIONS
Individual purpose is based on intrinsic desires or
motivation based on deep motivation. It can be built in not
by imposing.
ORGANIZATIONAL ASPIRATION:
 A business is not defined by its name, status or articles of
incorporation . It is defined by the business mission . Only a clear
definition of the mission and the purpose for the organization makes
possible clear and realistic business objective.”
 It is set by managers
 O.S comprised of vision, mission and values
Mission:
 Fundamental reason for the organizational existence
 David collis and Michael rukstad:
“spells out the underlying motivation for being in business in the first
place-the contribution to society that the firms aspires to nake”
Vision:
 It is a specific direction and a picture of intended future after getting the
mission
Values:
 It will reflect on organizational culture.
 It is all about what is important for the organization about how it conducts it
self as it persues its mission and works to achieve its vision and describes the
behaviors that are rewarded.
 align results
not align results
 results
Employees
aspiration
organization MOTIVATION
Employers
aspiration
organization
Lose
motivation
Organizations will move towards EXTRINSIC MOTIVATION i.e pay, promotion,recoginition,
incentives etc
WHY ORGANIZATION NEED ASPIRATION?
 Non profit organizations can not express their purpose in financial terms.
Greenpeace:
“non-violent, creative confrontation to expose global environmental problems and force solutions for
a green and a peaceful future”
 Profit organizations express their prpose to maximize profit or long-term share holder value.
Milton friedmon:
“there is one and only one social responsibility of business-to use its resources and engage in
activities designed to increase its profits so long as it stays within the rules of the game ,which is to
say, engages in open and free competition without deception or fraud”.
Aspiration and Strategy:
Aspiration Strategy
 People, with their
motivation,
direction, Purpose.
Questions Address:
 Why do we exist?
 What future are we
trying to create?
 What is important
to us?
 Concerned with
competition
Question Address:
 How will we
position
ourselves in our
industry to
achieve returns
superior to our
competitors.
A Framework for Analyzing Aspirations:
Coherent
Motivational
and strategicMotivational
Strategic
(Head)
Motivational
(heart)
Aspiration specify
sufficient choices
about how to compete
and guide all other
choices and decisions
Every employees
personal
aspiration must
align with
organization's
aspiration
No Alignment
No choices
specify
ASPIRATIONS AND BUSINESS PERFORMANCE:
 Framework about business performance and Aspiration impact
 Jim Collins and Jerry Porras in their book Built to Last said “the fundamental
distinguishing characteristic of the most enduring and successful corporations
is that they preserve a cherished core ideology while simultaneously
stimulating progress and change in everything that is not part of their core
ideology.”
 well-crafted organizational aspirations have multiple benefits:
• They establish boundary conditions for strategy decisions.
• They provide a stable purpose to guide the organization through changing times.
• They help with coordination.
• They communicate to stakeholders.
USING ASPIRATIONS:
 Patagonia
 Environmental mission
 Reduce, Repair, Reuse, Recycle and Reimagine
 Tesla Motors
• Aspirations:
• Intention of business
• Translated through mission and vision of the company
• Aspiration frames strategy and both compliment each other
• Strategy without an aspiration is vague
Aspiration – Jack Welch and GE
 Says; mission requires companies to make choices about people, investment and
other resources and forces companies to delineate their strength and weaknesses in
order to access where they can profitably play.
 Jack Welch says;
 “We want to be the most competitive enterprise in the world by being No. 1 or No.
2 and this is the vision of the company and this aspiration is very specific there
should be no doubt about it”
Lou Gerstner and the turnaround of IBM
ELEMENTS OF VISION:
• Keep company together and not spin off the pieces
• Reinvest in the mainframe
• Turn company into a market-driven rather than an internally focused, process-
driven enterprise
 Gerstner’s choice was strategic since it represented how to compete in the
market.
 He says:
 We never lose sight of our strategic vision
SETTING ASPIRATION:
CHARACTERISTICS OF ASPIRATION:
• Motivational and strategic
• Coherent, consistent and reinforcing
 There must be:
• Shared sense of mission,
• Shared vision,
• Set of shared values
• Leadership
• Culture, consistent with organizational aspiration
•
• Communicate aspirations to all the employees and articulate them
• Aspirations should be both motivational and strategic
• Should be consistent with the mission, vision and the value of the company
• Should fit with business model, culture of the organization
ASPIRATIONS AND BRAND:
• Aspirations should be inspiring
• Motivate employees
• Inclined customers towards company’s brand, since brands communicate what the
company stands for.
ASPIRATIONS AND BRAND COKE:
 Coke’s mission is consistent with its brand:
• To refresh the world
• To inspire moments of optimism
• To create vale and make difference
ASPIRATIONS AND BRAND DISNEY:
 Mission statement says:
 We create happiness by providing the finest in the entertainment to people of
all ages, everywhere
 To stay consistent with their mission, Disney developed 3 basic guidelines:
• No bad language
• No uncomfortable situations
• No gratuitous violence
ANALYZE THE
ENVIRONMNET
DECIDE ON
POSITIONING
BUILD OUT
THE BUSINESS
MODEL
TRACK
PROGRESS
AND REFINE
OR REVISIT
ASPIRATIONS AND STRATEG PROCESS:
ASPIRATION AND STRATEGY PROCESS:
 Many companies use top-down strategy development process that
encompasses of the following 4 steps process:
1. What business are we in and why? (Mission, Vision and values)
2. Where are we going? (Strategic goals)
3. What are the key issues that our strategy must address? (Strategic analysis)
4. How can we best compete? (Strategy formulation)
PERILS OF MISUSE OF STRATEGY:
1. Confusing a mission statement with a sense of mission
2. Confusing aspiration with strategy
3. Assuming that visions are self-fulfilling
4. Developing cookie-cutter aspirations
5. Using aspirations as public relations
6. Creating conflict between aspirations and financial objectives

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Setting aspiration

  • 2. CONTENT:  Introduction  Personal aspiration  Organizational aspiration  Aspiration and strategy  Framework for analyzing aspiration  Aspiration and business performance  Using aspirations  Setting aspiration  Mission  Vision  Values  Aspirations and brands  Aspirations and the strategy process  Perils of the misuse of aspirations  conclusion
  • 3. A hope or ambition of achieving something  Personal aspiration  Organizational aspiration Connection between individuals motivation & behavior and organizational strategies
  • 4. MISSION a purpose VISION A desired future VALUES ,Why we exist What is important to usWhat future we want to create
  • 5. MISSIONS: George Orewell, an animal farmer: “Making political writing in to an art”. Patagonia: “Build the best product, cause no unnecessary harm and use business to inspire and implement solutions to the environmental crises.” VISIONS: Martin Luther King: “I have a dream that my four children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character”. Henry Ford: I will build the motor car for the great multitude, it will be so low in price that no man making good wages will be unable to own one and to enjoy with his family the blessing of hour of pleasure GODs great open spaces..when I’m through everyone will be able to afford one and everyone will have one
  • 6. Henry Ford: “I will build the motor car for the great multitude, it will be so low in price that no man making good wages will be unable to own one and to enjoy with his family the blessing of hour of pleasure GOD’s great open spaces. when I’m through everyone will be able to afford one and everyone will have one”. VALUES: Evelyn Hall: “I disapprove of what you say , but I will defend to the death your right to say it.” Mark Zuckerberg: “Hackers try to build the best services over the long term by quickly releasing and learning from smaller iterations rather than trying to get everything right all at once . We have the words Done is better than perfect painted on our walls.”
  • 7.  An aspiration is a pre-requisite for a strategy.  Organizational Aspirations provide the motivation.  Organizational Aspiration emphasize the strategy.  Organizational Aspirations provided both.  Aspirations provide a valuable complement to strategy.  Patagonias aspiration is both “motivational and strategic”.  Fords aspiration is “strategic”. ASPIRATION:
  • 8. Strategy: It is an integrated set of choices that positions the business in its industry so as to create superior financial returns over the long run”  An aspiration that is strategic will reflect some of the high levels choices the organization has made about how to compete , but it will rarely articulate the detailed strategy. If an aspiration does not contain any information about how the organization chooses to compete, it will not strategic”.
  • 9.  Aspiration is an important part of strategy.  Aspiration is useful when:  Shared by employees and when they complement a carefully developed strategy based on understanding of the business environment.  Aspiration is useless when:  It is poorly crafted like Enron ’s
  • 10. PERSONALASPIRATIONS Individual purpose is based on intrinsic desires or motivation based on deep motivation. It can be built in not by imposing.
  • 11. ORGANIZATIONAL ASPIRATION:  A business is not defined by its name, status or articles of incorporation . It is defined by the business mission . Only a clear definition of the mission and the purpose for the organization makes possible clear and realistic business objective.”  It is set by managers  O.S comprised of vision, mission and values
  • 12. Mission:  Fundamental reason for the organizational existence  David collis and Michael rukstad: “spells out the underlying motivation for being in business in the first place-the contribution to society that the firms aspires to nake” Vision:  It is a specific direction and a picture of intended future after getting the mission Values:  It will reflect on organizational culture.  It is all about what is important for the organization about how it conducts it self as it persues its mission and works to achieve its vision and describes the behaviors that are rewarded.
  • 13.  align results not align results  results Employees aspiration organization MOTIVATION Employers aspiration organization Lose motivation Organizations will move towards EXTRINSIC MOTIVATION i.e pay, promotion,recoginition, incentives etc
  • 14. WHY ORGANIZATION NEED ASPIRATION?  Non profit organizations can not express their purpose in financial terms. Greenpeace: “non-violent, creative confrontation to expose global environmental problems and force solutions for a green and a peaceful future”  Profit organizations express their prpose to maximize profit or long-term share holder value. Milton friedmon: “there is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game ,which is to say, engages in open and free competition without deception or fraud”.
  • 15. Aspiration and Strategy: Aspiration Strategy  People, with their motivation, direction, Purpose. Questions Address:  Why do we exist?  What future are we trying to create?  What is important to us?  Concerned with competition Question Address:  How will we position ourselves in our industry to achieve returns superior to our competitors.
  • 16. A Framework for Analyzing Aspirations: Coherent Motivational and strategicMotivational Strategic (Head) Motivational (heart) Aspiration specify sufficient choices about how to compete and guide all other choices and decisions Every employees personal aspiration must align with organization's aspiration No Alignment No choices specify
  • 17. ASPIRATIONS AND BUSINESS PERFORMANCE:  Framework about business performance and Aspiration impact  Jim Collins and Jerry Porras in their book Built to Last said “the fundamental distinguishing characteristic of the most enduring and successful corporations is that they preserve a cherished core ideology while simultaneously stimulating progress and change in everything that is not part of their core ideology.”  well-crafted organizational aspirations have multiple benefits: • They establish boundary conditions for strategy decisions. • They provide a stable purpose to guide the organization through changing times. • They help with coordination. • They communicate to stakeholders.
  • 18. USING ASPIRATIONS:  Patagonia  Environmental mission  Reduce, Repair, Reuse, Recycle and Reimagine  Tesla Motors
  • 19. • Aspirations: • Intention of business • Translated through mission and vision of the company • Aspiration frames strategy and both compliment each other • Strategy without an aspiration is vague
  • 20. Aspiration – Jack Welch and GE  Says; mission requires companies to make choices about people, investment and other resources and forces companies to delineate their strength and weaknesses in order to access where they can profitably play.  Jack Welch says;  “We want to be the most competitive enterprise in the world by being No. 1 or No. 2 and this is the vision of the company and this aspiration is very specific there should be no doubt about it”
  • 21. Lou Gerstner and the turnaround of IBM ELEMENTS OF VISION: • Keep company together and not spin off the pieces • Reinvest in the mainframe • Turn company into a market-driven rather than an internally focused, process- driven enterprise  Gerstner’s choice was strategic since it represented how to compete in the market.  He says:  We never lose sight of our strategic vision
  • 22. SETTING ASPIRATION: CHARACTERISTICS OF ASPIRATION: • Motivational and strategic • Coherent, consistent and reinforcing  There must be: • Shared sense of mission, • Shared vision, • Set of shared values • Leadership • Culture, consistent with organizational aspiration •
  • 23. • Communicate aspirations to all the employees and articulate them • Aspirations should be both motivational and strategic • Should be consistent with the mission, vision and the value of the company • Should fit with business model, culture of the organization
  • 24. ASPIRATIONS AND BRAND: • Aspirations should be inspiring • Motivate employees • Inclined customers towards company’s brand, since brands communicate what the company stands for. ASPIRATIONS AND BRAND COKE:  Coke’s mission is consistent with its brand: • To refresh the world • To inspire moments of optimism • To create vale and make difference
  • 25. ASPIRATIONS AND BRAND DISNEY:  Mission statement says:  We create happiness by providing the finest in the entertainment to people of all ages, everywhere  To stay consistent with their mission, Disney developed 3 basic guidelines: • No bad language • No uncomfortable situations • No gratuitous violence
  • 26. ANALYZE THE ENVIRONMNET DECIDE ON POSITIONING BUILD OUT THE BUSINESS MODEL TRACK PROGRESS AND REFINE OR REVISIT ASPIRATIONS AND STRATEG PROCESS:
  • 27. ASPIRATION AND STRATEGY PROCESS:  Many companies use top-down strategy development process that encompasses of the following 4 steps process: 1. What business are we in and why? (Mission, Vision and values) 2. Where are we going? (Strategic goals) 3. What are the key issues that our strategy must address? (Strategic analysis) 4. How can we best compete? (Strategy formulation)
  • 28. PERILS OF MISUSE OF STRATEGY: 1. Confusing a mission statement with a sense of mission 2. Confusing aspiration with strategy 3. Assuming that visions are self-fulfilling 4. Developing cookie-cutter aspirations 5. Using aspirations as public relations 6. Creating conflict between aspirations and financial objectives