Vision Setting Tools & Frameworks.pptx

1. 1
Vision Setting
“There are those who look at
things the way they are, and ask
why... I dream of things that never
were, and ask why not?”
— Robert Kennedy
Ashleigh McDougall
Tools & Frameworks

2. 2
Vision....often quoted, rarely practiced
“There are those who look at things the way they are, and ask why... I
dream of things that never were, and ask why not?”
— Robert Kennedy
“Good business leaders create a vision, articulate the vision,
passionately own the vision, and relentlessly drive it to completion.”
— Jack Welch
“A leader has the vision and conviction that a dream can be achieved. He
inspires the power and energy to get it done.”
— Ralph Lauren

3. 3
The Flow
• What is “Vision”
• Applications
• Methodology
• Business Example
• Key Sources

4. Vision: An inspirational description of what success will be at a
particular time in future
4
An effective vision:
• Creates a vivid mental image of the desired
future state
• Sets the broad long-term direction that
does not fluctuate from year to year
• Inspires those who pursue it and pushes
the organization/individuals to see what
they can become
• Ambitious but actionable, focused on the
future but grounded in today
• Provides focus: “Specific enough that
everyone can use it to decide if their work is
moving the company forward.”*
*Stever Robbins Inc

5. What are the key elements of a good vision statement?
5
A vision statement should reflect three key elements:
1. Purpose: It answers the question  “Why does the organization exist?”
• It clarifies from a customer perspective “what business are we really in?”
2. Core Values: Provides broad guidelines on ”How” to proceed according to
values
3. Envisioned Future: This answers the question : “Where/What” do we want to
get?
“The best visions imply whom the company serves,
what it provides and what distinguishes it from
other companies providing the same products and
services.
The vision tells us the market, product, the
distinguisher, and the progress measurement.”*
The best visions….

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Description Determines Example
Vision
•Timeless, broad direction, ideal state
•Internally generated
•Specific enough to know what to say “No”
to
•Major markets
•Major
uniqueness/skill/advantage
•Possible strategies
“Go West, young man.”
Strateg
y
• Time specific , competitors, market
conditions
•Answers the question, “How do we
achieve our vision in the current market,
regulatory, and competitive environment?”
•Market segments to pursue
•Which relationships to pursue
(distributors, complementors,
customers)
•Organization structure and
priorities
“We’re going West, but we ran
into this grand canyon. We can
go around to the North or
South. Let’s choose South.”
Tactic
•Goal, typically < 1 year
•To be achieved with existing resources,
market structures, etc
•Day-to-day actions to take
”We will travel 800km West by
car daily and be 60% of the way
by year end.”
Why set a vision? A vision establishes broad direction and is
essential for prioritizing opportunities and guiding strategy and
tactics
* Source: Stever Robbins Inc.
Vision lays out a destination; your destination guides your strategy; and strategy chooses
action.*
• At the end of the day, your vision exists to drive tactics and provide guidance to individuals
to help them effectively prioritize opportunities and allocate resources when faced with
tradeoffs
• Without vision, you/the organisation no doubt will wind up somewhere—you just don’t
know where

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Vision, purpose, mission and goals are often confused as they hold different
meanings to different people
SMART = Specific, Measurable, Realistic, Attainable and Time bound
* Source: Stever Robbins Inc., http://www.businessnewsdaily.com/3882-vision-statement.html
WHY we exist?
WHAT we aim to achieve?
HOW we plan to
achieve our vision?
WHAT we stand for
and how we behave?
HOW we differentiate
from our competitors?
Purpose
Vision
Mission
Values
Positioning
While many organizations use mission and vision interchangeably, they do distinctly
different jobs
•Purpose (often called mission)
statements are present-based and
designed to convey a sense of why the
company exists to both members of the
company and the external community.”
•”Vision statements are future-based and
are meant to inspire and give direction
to employees, not externally” Where do I
see my business going ?
•It is important for each organization to
clarify and agree what each of these
terms mean
To be effective, a vision should not be confused with a goal
Vision Goals
• Abstract ambition that’s difficult to measure
• The big picture of how the organization will
look when it has achieved its goals
• Longer term view (10+ yrs)
• Inspirational
• Tangible and SMART
• What we will do to achieve our vision
• Can be both short term and long term
• Actionable

8. 8
The Flow
• Key Sources
• What is “Vision”
• Applications
• Methodology
• Business Example

9. 9
Applications of Vision Setting for Shell projects
1. Vision setting can be performed at the corporate, business unit
or country level. Once set, vision should provide long term
direction but strategy and goals will need to evolve.
2. Vision setting may be relevant in a variety of projects where
scenario planning / setting strategic direction is required;
however it is important to determine if vision setting is required
or if the team will be working on strategy within an existing
vision:
• CoB Growth Plans (5 years +)
• OU Integrated Strategy Reviews (normally 10 year view)
• Segment / Sector specific growth plans (5 years +)
• Organizational change projects (blueprint for Downstream-One)

10. 10
Examples of mission statements: There is no cookie cutter model
for a great mission statement, but rather organizational culture is
the driving force
There are four basic types of vision statements with examples of each:
1. Role-Model
• To preserve and improve human life – Merck
• To give unlimited opportunity to women –Mary Kay Cosmetics
• To solve unsolved problems innovatively – 3M
• To make people happy –Walt Disney
2. Quantitative
• Become a $125 billion company by the year 2000. - Wal-Mart, 1990
• A computer on every desk and in every home; all running Microsoft software. - Microsoft, 1990s
• We will put a man on the moon and return him safely within the decade. - JFK, early 1960s
3. David-versus-Goliath
• Crush Adidas - Nike, 1960s
• Yamaha wo tsubusu! We will destroy Yamaha! - Honda, 1970s
4. Internal Transformations
• Become number one or two in every market we serve and revolutionize this company to have the
strengths of a big company combined with the leanness and agility of a small company. - GE, 1980s
• Transform this company from a defense contractor into the best-diversified high-tech company in the
world. - Rockwell, 1995
• Become the company most known for changing the worldwide poor-quality image of Japanese
products. - Sony, 1950s
Source: http://www.whyvisionmatters.com/seeing-through-a-foggy-future/ with additions
Which style best
fits your vision?

11. 11
The Flow
• Key Sources
• What is “Vision”
• Applications
• Methodology
• Business Example

12. 1. When writing a vision statement, you first need to identify your organizations purpose
• Why is it important for this organization to exist? What would be lost if this organization ceased to
exist?
• Ask – Why is that important? Continue to ask why many times until you find the true emotional
connection
2. With purpose statement in hand, brainstorm your vision with a group to visualize where you
see yourself in the long-term. Be sure to agree your vision’s timeframe up front.
• What problem does your company exist to solve? What does your company hope to achieve?
• Why does anyone care what we do?
• Who is your target customer base, and what do you want to do for them?
• What do you, your customers and other stakeholders value most about how your organization will achieve its
purpose? What are you most proud of?
• What will the world look like in 2030?
• What does our organization look like? How big is it? What are we famous for?
• How do people feel about their jobs? How do I as the leader feel about the business?
• Beyond money, why would anyone dedicate their precious time, energy and passion to this
project/organization?
3. Based on your question responses, ask the group what success will look like if you accomplish
those things?
4. Write the first draft consolidatating the brainstormed ideas
 It may be useful to create multiple options to consider as you develop the corresponding
statements
How to write a vision statement: 7 steps
Source: http://www.whyvisionmatters.com/seeing-through-a-foggy-future/
http://www.businessnewsdaily.com/3882-vision-statement.html
Consider the following questions using a mind map to document discussions:

13. 5. Test it for effectiveness: Does it paint your future picture of success?
6. Solicit feedback
 It is often helpful to put it aside for a few days prior to polish the final version
7. Share the vision with everyone who will be involved in implementing it
 Communicate it a million times across the organisation as it helps to rally people around a
cause
 Communicate the Vision in personal terms – articulate in terms of what is in it for key
stakeholders
How to write a vision statement: 7 steps
Source: http://www.inc.com/magazine/20110201/creating-a-company-vision.html
3 tests of an effective vision statement

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• Be constrained by the past and remove perceived constraints
• Define it in terms of competition which can change
• Talk about HOW things get done
• Spend too much time on it
• Require knowledge about the customer to understand
• Confused vision with a mission statement, goal, tactic or
strategy
• Focus on what you want to get rid of
Some tips
• Dream big, focus on success and possibility
• Paint a graphic mental picture of the business you want
• Keep it simple and don’t try to put too much into it; you have
other statements to complete the idea
• Use present tense language as if we were already there
• When describing goals, project five to 10 years in the future
• Ensure it reflects core values and core purpose
• Focuses on what you want to create
• Check if it could be relevant forever
• Infuse your vision statement with passion and emotion
• Make it bigger than the individual –creates a desire for
teamwork
• Get personal -be authentic and relevant for everyone
• Think about how you will define progress towards your vision?
• Use your vision to govern strategy and tactics daily - Think
about what capabilities are required to deliver?
• COMMUNICATE IT!
Do’s Don’ts

15. 15
The Flow
• Key Sources
• What is “Vision”
• Applications
• Methodology
• Shell Example

16. 16
20
15
16
Dec 2010
CONFIDENTIAL
Indonesia Lubricants
2015 vision is to become the #1 IOC in XXXXX* Lubricants market,
a New Shell Heartland and the preferred business partner of
customers
XX% market share, XXXX M Ltrs Volume,
XXX M US$ C3, XX M US$ C5 by 2015
B2C
Indirect
56 ML
Accelerate
MCO
owner-driver
HDDEO
growth
B2B
Indirect
17ML
Distributor
capability,
Price
competitivene
ss
B2B
Direct
60 ML
Penetrate
Mining,
Power and
Fleet,
Direct Supply
OEM
8 ML
Win
factory fill
from
Japanese
brands incl
GPO
On strategy RTM Resource (SP&A)
Best
Sales
&
Marketing
Team
in
XXXX
LSC
capability/reliability
Talent and competency
GOALS
CORE
BUSINESS
STRATEGY
ENABLERS
FOUN-
DATION Technology Leadership
B2C
Direct
8 ML
Increase
IWS, FWS
penetration
Marine
11 ML
Leverage
B2B &
distributor
network
XXXXX Partnership
SGBP & HSSE
* All confidential information removed

17. 17
The Flow
• What is “Vision”
• Applications
• Methodology
• Business Example
• Key Sources

18. 18
Key Sources used
• Demystifying the Development of an Organisational Vision – Mark
Lipton, Director The Leadership Centre, Milano Graduate School of
Management
• Built to Last: Successful Habits of Visionary Companies by James C.
Collins and Jerry I. Porras.
• Summary of HBR article by Collins and Porras: http
://www.tecker.com/wp-content/uploads/2011/07/CollinsBuildingVisionSept96.pdf
• Vision Framework workshop document by Jim Collins. Most relevant to
higher level organisational vision. http://www.jimcollins.com/tools/vision-framework.pdf
• Jack – Straight from the Gut. Jack Welch
• Full Steam Ahead!: Unleash the Power of Vision in Your Work and Your
Life. Ken Blanchard and Jesse Lyn Stoner
• GBLP Training Material: Setting Strategic Direction – J Stewart Black,
Professor, Insead
• Video on YouTube:
Jack Welch: http://www.youtube.com/watch?v=LnMTMVqZL8o&&