Developing a Vision and Mission Statement

Structure of a mission statement

        The following elements can be included in a mission statement. Their sequence can be different. It is important, however, that some elements supporting the accomplishment of the mission be present and not just the mission as a "wish" or dream.,

• Purpose and values of the organization (products or services, market) or who are the organization's primary "clients" (stakeholders)

• What are the responsibilities of the organization toward these "clients ". 

• What are the main objectives supporting the company in accomplishing its mission

A mission statement explains the company's core purpose and values.

1. At is most basic, the mission statement describes the overall purpose of the organization.

2. If the organization elects to develop a vision statement before developing the mission statement, ask “Why does the image, the vision exist -- what is it’s purpose?” This purpose is often the same as the mission.

3. Developing a mission statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational mission.

4. When wording the mission statement, consider the organization's products, services, markets, values, and concern for public image, and maybe priorities of activities for survival.

5. Consider any changes that may be needed in wording of the mission statement because of any new suggested strategies during a recent strategic planning process.

6. Ensure that wording of the mission is to the extent that management and employees can infer some order of priorities in how products and services are delivered.

7. When refining the mission, a useful exercise is to add or delete a word from the mission to realize the change in scope of the mission statement and assess how concise is its wording.

8. Does the mission statement include sufficient description that the statement clearly separates the mission of the organization from other organizations? 

Mission Statements of Well Known Enterprises

"To solve unsolved problems innovatively" -Mary Kay Cosmetics

"To make people happy.” - Walt Disney

Developing a Vision Statement

1. The vision statement includes vivid description of the organization as it effectively carries out its operations.

2. Developing a vision statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational vision.

3. Developing the vision can be the most enjoyable part of planning, but the part where time easily gets away from you.

4. Note that originally, the vision was a compelling description of the state and function of the organization once it had implemented the strategic plan, i.e., a very attractive image toward which the organization was attracted and guided by the strategic plan. Recently, the vision has become more of a motivational tool, too often including highly idealistic phrasing and activities which the organization cannot realistically aspire.

Devamını Oku »

Understanding Vision Statement with 10 Examples

        If you were to take a photo of your future business now, what would it look like? What do you want your business to be recognized for one day? You need to have a crystal clear vision when you start out, otherwise you can get easily lost in deciding the best way forward. When you are making strategic decisions for your business and even daily operation decisions, your vision statement will give you the inspiration and targeted direction you need.

If you don’t aim for anything, you might not hit anything. The more specific and clear you are, the better your chances are at seeing your vision turn into reality. The importance of a vision statement cannot be overlooked; not only does it provide long term direction and guidance, but it also gives you the inspiration and the necessary energy to keep going when you feeling lost.

There are many different types of vision statements and there is not a wrong or right way to do it. The most important is that you resonate with it, it inspires you and is clear enough to give you targeted direction.

Here are examples of  10 different vision statements :

Ø  Short vision statements made up of a few words only:

1. Disney – To make people happy.

2. Ikea – To create a better every day life for the many people.

Ø  Quantitative statements are based on numbers, quantities:

3. Nike – Current: To be the number one athletic company in the world.

4. Wal-Mart – Become a $125 billion company by the year 2000.

Ø  Qualitative statements are based on qualities that you want to have:

5. Microsoft – At Microsoft, our mission and values are to help people and businesses throughout the world realize their full potential.

6. Avon – To be the company that best understands and satisfies the product, service and self-fulfillment needs of women—globally.

Ø  Competitor based statements – this type is becoming less common, but famous examples are:

7. Honda – in 1970: We will destroy Yamaha.

8. Nike – in 1960s: Crush Adidas.

Ø Role Model Vision Statements – using another company as an example:

9. Giro Sport Design – To become the Nike of the cycling industry.

10. Stanford University – To become the Harvard of the West.

  

Devamını Oku »

Are You A Manager Or A Leader?

        Remember childhood? Anything was possible. We all dreamed of being a firefighter, a ballerina, a future president or something grand. We grabbed the hose, twirled in our tutus, or stood on the highest step shouting to the imaginary masses. Whatever the dream, whatever the vision, we all had one thing in common: in those moments, we were leaders. We wanted to take anyone who would listen on our adventures. More than that, we made them believe in our ventures.

        So what does that have to do with business today? Everything. The confidence and conviction children so often display, are the same characteristics that make a great leader. Modern visionaries have learned to channel those child-like attributes and transition from managers to leaders that shape business vision into real success.

Are You A Leader Or A Manager?

        There are certainly great leaders all over the world ,but at the heart of every great leader is a visionary.  A visionary in business is a leader who has a clear understanding of the overall end goal and uses that goal to task every move he or she makes. Where a manager only tells someone what to do, a leader involves everyone in the plan.  Where a manager instructs people, a real leader encourages, motivates, and shares their passion, enabling others to take part in the strategic vision and execution that will ensure success.

Leaders Plan

        Philosopher, Lao Tzu said, “A journey of a thousand miles begins with one step.” Taking that first step is great, but without a plan you won’t get very far. Leaders know this, and the best ones use smart strategic tools to devise the right plan and execute their overall goal. From strategic planning models to strategy software, leaders carefully map out individual strategic plans of action that support the overall aim. If the plan is not working, leaders change it but not the goal. Successful leaders recognize that flexibility and agility are critical components to the right strategic plan.

Leaders Don’t Stand Alone

        Great leaders stand out, but they do not stand alone. They lead, motivate, and offer others the strategic tools they need to become leaders in their own right. With the right strategy, every manager can become a leader and learn how to direct themselves as well as those around them. Leaders empower others, helping them move beyond a manager perspective to become a strategic visionary. While managers add value to an organization and help execute strategic plans, true leaders display a passion and confidence for turning strategic vision into operational success.

Devamını Oku »

What Do Clear Vision & Mission Statements Contribute to the Strategic Management Process?

        Managers must define and communicate a clear strategy if the company is to be successful. Vision and mission statements summarize a company's business strategy in a form that can be communicated and understood easily by stakeholders.

Ø  Vision Statement :

        A vision statement sets out a company's long-term goals and aspirations clearly and concisely. A vision statement is intended to inspire and motivate the company's workforce by providing a picture of where the organization is heading. It also provides a reality check for managers, who can compare their strategic objectives and operational plans to the vision statement. If a planned course of action doesn't move the company toward its vision, it may need to be revised.

 Ø  Mission Statement :

        A mission statement defines the business sector in which a company operates and sets out its key purpose. It summarizes what the company does and why. It also sets out how the company conducts its business and identifies key stakeholders, such as shareholders, customers and employees. A mission statement helps employees understand where their contribution fits into the company's objectives. It also helps other stakeholders decide whether they want to do business with the organization.

Ø  Strategic Management Process :

        The development of vision and mission statements is an essential part of the strategic management process. Having clearly defined the vision and mission of the organization, managers then can set strategic objectives that are aligned with the company's long-term goals. Managers translate these strategic objectives into an operational strategy that can be implemented, monitored and evaluated. The outcome of the evaluation will determine whether any revision of the vision statement, mission statement, objectives or operational strategy is required.

Ø  Alignment :

     

         Well-written vision and mission statements ensure that each element of the strategic management process is aligned to the company's long-term goals. Managers use clear and concise vision and mission statements to communicate their aspirations to stakeholders. Employees understand where to focus their efforts if they align their daily work with the vision and mission. Clear vision and mission statements allow customers, suppliers and shareholders to choose whether or not they want to do business with the company

Devamını Oku »

The Advantages of Having a Mission Statement

        Starting a new business is an inherently risky venture but business owners can increase the chances of success through diligent planning. A common task undertaken by new business owners is creating a business plan – essentially a road map describing what a business does, how it does it and how it will achieve profitability. A mission statement is a short summary of a business's purpose, which is a key element of a business plan.

Mission Statement Basics :

        A mission statement describes the basic goals of a business or any other organization. According to the U.S. Small Business Administration, a mission statement could be two words, two sentences, a paragraph, or even a single image. Whatever its form, a mission statement should give readers a clear idea of what a business does and its overall philosophy in a minimal amount of time.

Business Plans :

        A mission statement is commonly included as a part of the executive summary of a business plan and may be the very first thing that appears in a business plan. The executive summary provides a brief overview of the entire plan. The executive summary is the most important part of a business plan because it is the first section that potential investors, lenders and strategic partners read. A strong mission statement can set the tone for the executive summary of a business plan and may ultimately help a business attract investment, funding or business partners.

Company Direction :

        Another benefit of creating a mission statement is that it gives establishes a business's underlying purpose beyond the simple goal of making profit. This purpose can help guide the types of products and services the company offers as well as the company's policies. For example, an environmentally conscious entrepreneur might include in his mission statement that his company will not use environmentally harmful production methods.

Advertising :

        A mission statement can potentially be beneficial to a business by acting as form of advertisement. For instance, an entrepreneur might be able to attract business from other environmentally conscious individuals and businesses by including the mission statement in advertisements.

Devamını Oku »

Key Terms in Strategic Management

           
           There are some of basic strategic management key terms that need to be considered at the beginning in order to completely understand strategic management. These strategic management key terms are eight in numbers and are the base of strategic management.

               1.    Strategists

               2.    Vision & Mission Statement

               3.    External Opportunities & Threats

               4.    Internal Strengths & Weaknesses

               5.    Long Term Objectives

               6.    Strategies

               7.    Annual Objectives

               8.    Policies,

> 8 Important Strategic Management Key Terms :

        Below is the detail all the 8 important strategic management key terms, which are important to understand for developing a successful strategic plan in business.

1.    Strategists :

          

          Strategists are individuals who are most responsible for the success or failure of an organization. Strategists are individuals who form strategies. Strategists have various job titles, such as chief executive officer, president, and owner, chair of the board, executive director, chancellor, dean, or entrepreneur. Strategists help an organization gather, analyze, and organize information.

2.    Vision & Mission Statement :

Vision Statement: Vision statement is quite necessary for the operation of the organization as it provides answer to the question that should be the organization wants to become? The first step in the strategic planning is to develop the vision statement and after that mission statement is prepared. Mostly the organizations develop single sentence vision statements.

Mission Statement: Mission statement is long lasting statement that differentiates one organization from other similar organization. The scope of the operations of the                                          organization in terms of market and product is identified                                           through mission statement.

3.    External Opportunities & Threats :

    

    External opportunities and external threats refer to economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization in the future. Opportunities and threats are largely beyond the control of a single organization, thus the term external. The computer revolution, biotechnology, population shifts, changing work values and attitudes, space exploration, recyclable packages, and increased competition from foreign companies are examples of opportunities or threats for companies. These types of changes are  creating a different type of consumer and consequently a need for different types of products, services, and strategies.

4.    Internal Strengths & Weaknesses:

         Those activities of the organization that are under control of the organization, and may show good and bad impact on the organization are known as internal strengths and weaknesses of organization. These are present in the marketing, management, production/operation, finance/accounting, and information technology research and development activities of the organization. It is quite essential strategic activity for an organization to identify and evaluate organizational strengths and weaknesses.

5.    Long Term Objectives :

           

        Long term objectives are also from one of the important strategic management key terms. Long term objectives are referred to as particular results that organization wants to accomplish in targeting the mission. Expected results by targeting certain strategies are represented by long term objectives. Strategies include those actions that are executed for the accomplishment of the long term objectives. There should be consistent time frame for strategies & objectives which range from two to five years.

The objectives are important for the success of the organization because of the following reasons:

– Provide direction                                                            

      –  Helps in evaluation

– Create synergy

– Reveal priorities

– Focus coordination

– Assist in making plans, organizing data, motivating employee and controlling each and everything

6.    Strategies :

             

   The means through which allow us to achieved long term objectives. Following are included       in the business strategies.

– Geographic Expansion

– Diversification

– Product development

– Acquisition

– Retrenchment

 – Market penetration

 – Liquidation & Joint venture

Large amount of the resources of organization are required along with the decisions of top management for the application of strategies in the form of actions. 

7.    Annual Objectives :

      Those short term targets that are helpful in achieving long term objectives of the organization are called annual objectives. The annual objectives must be quantitative, measurable, realistic, challenging, consistent and prioritized. These must be developed at functional, divisional & corporate levels in large organizations. Annual objectives are significant for strategy implementation whereas strategy formulation phase contains long term objectives.

8.    Policies :

     Annual objectives are accomplished by the means of policies. Policies contain rules, guidelines & procedures developed to assist efforts to accomplish stated objectives. Decision making is guided through policies & recurring and repetitive situations are also addressed through policies.

     Policies are usually mentioned in terms of marketing, finance/accounting, Management and production/operation, activities related to information technology and research and development.

   

Devamını Oku »