Chapter 4 Organisational Mission: Vision, Purpose And Values

Chapter 4

Organisational Mission:

Vision, Purpose And Values

Strategic Management 4e., Viljoen & Dann © 2002 Pearson Education Australia2

Objectives

differentiate between vision, purpose and values

describe an Australian perspective on organisational vision,

purpose and values

give a detailed explanation of the nature and purpose of the

vision, purpose and values

identify and articulate the primary components of the vision,

purpose and values, and

describe ways commitment to the organisation’s vision, purpose

and values can be strengthened

Matt H. Evans, [email protected]

Major Components of theStrategic Plan / Down to Action

Mission

Vision

Goals or purpose

Objectives

Measures

Why we exist

What we want to be

Indicators and Monitors of success

Desired level of performance and timelines

Planned Actions to Achieve Objectives

O1 O2

AI1 AI2 AI3

M1 M2 M3

T1 T1 T1

Specific outcomes expressed in measurable terms (NOT activities)

Strategic Plan

Action Plans

Evaluate Progress

Targets

Initiatives

What we must achieve to be successful


Mission statement

Typically contains three elements

Vision statement

Purpose statement

Values statement


The Mission:Vision, Purpose And Values

StrategiesHow we are going

to get there

VisionOur ideal future

ObjectivesWhat we want

to achieve

PurposeOur core business

ValuesThings we Believe in

Figure 4.1

Mission & VisionVision: Defines the desired or intended future state of an

organization or enterprise in terms of its fundamental objective and/or strategic direction. Vision is a long-term view, sometimes describing how the organization would like the world to be in which it operates. For example, a charity working with the poor might have a vision statement which reads "A World without Poverty." The vision is usually developed by the organization’s leader.

Mission: Defines the fundamental purpose of an organization or an enterprise, succinctly describing why it exists and what it does to achieve its Vision.

It is sometimes used to set out a "picture" of the organization in the future. A mission statement provides details of what is done and answers the question: "What do we do?" For example, the charity might provide "job training for the homeless and unemployed."

Mission & Vision

Organizations sometimes summarize goals (or purpose) and objectives into a mission statement and/or a vision statement. Others begin with a vision and mission and use them to formulate goals (or purpose) and objectives. In some cases this mission statement is used as part of the company’s promotion material.

A Mission statement tells you the fundamental purpose of the organization. It defines the customer and the critical processes. It informs you of the desired level of performance.

A Vision statement outlines what the organization wants to be, or how it wants the world in which it operates to be. It concentrates on the future. It is a source of inspiration. It provides clear decision-making criteria.

Create a Mission StatementOnce you have clarified your beliefs, build on them to define your

mission statement which is a statement of purpose and function. Your mission statement draws on your belief statements. Your mission statement must be future oriented and portray your organization as it will be, as if it already exists. Your mission statement must focus on one common purpose. Your mission statement must be specific to the organization, not generic. Your mission statement must be a short statement, not more than one or two sentences.

Here is an example mission statement: "By providing quality education, we empower individuals to become caring, competent, responsible citizens who value education as a lifelong process."

Creating a Vision

When you begin the process of strategic planning, visioning comes first. When visioning the change, ask yourself, "What is our preferred future?" and be sure to: Draw on the beliefs, mission, and environment of the organization. Describe what you want to see in the future. Be specific to each organization. Be positive and inspiring. Do not assume that the system will have the same framework as it does today. Be open to dramatic modifications to current organization, methodology, teaching techniques, facilities, etc.


Keeping the Vision Relevant in Organisations

Aspirations forDivision A

Aspirations forDivision B

Aspirations forDivision C

Organisational vision(overreaching)

Key Components for Your Vision

Incorporate Your Beliefs : Your vision must be encompassed by your beliefs. Your beliefs must meet your organizational goals as well as community goals. Your beliefs are a statement of your values. Your beliefs are a public/visible declaration of your expected outcomes. Your beliefs must be precise and practical. Your beliefs will guide the actions of all involved. Your beliefs reflect the knowledge, philosophy, and actions of all. Your beliefs are a key component of strategic planning.

Exercise in Creating a Vision

Take the time to assimilate this information, use the following example to exercise your planning techniques:

It is five years from today’s date and you have, marvelously enough, created your most desirable district. Now it is your job, as a team, to describe it - as if you were able to see it, realistically around you.

Respond to the following questions:How has the job market changed? What have we done to prepare our students for success in this world? What do we as board members spend most of our time doing? How are our meetings structured?


Purpose statement

Issues in defining purpose - narrow versus broad purpose

purpose and relevant environment

purpose and customer needs

purpose and customer segments

purpose and technology


Fundamental purpose

defines organisation’s business

is the central reference point of strategic management

can be defined too broadly or too narrowly

identifies the statement of organisational purpose


Key areas in defining organisational purpose

customer need

customer group

technology utilised

Setting Goals and Objectives

The difference between where we are (current status) and where we want to be (vision and goals) is what we do (target objectives and action plans).

As this statement shows, setting goals and objectives builds on the previous steps of visioning and taking stock. Goals are simply a clearer statement of the visions, specifying the accomplishments to be achieved if the vision is to become real. The target objectives are clearer statements of the specific activities required to achieve the goals, starting from the current status.


Goals vs. Objectives

GOALS OBJECTIVES

Very short statement, few words

Longer statement, more descriptive

Broad in scope Narrow in scope

Directly relates to the Mission Statement

Indirectly relates to the Mission Statement

Covers long time period (such as 10 years)

Covers short time period (such 1 year budget cycle)


Examples of Goals

Reorganize the entire organization for better responsiveness to customersReorganize 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.

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.

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.

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.

Establish a means by which our decision making process is market and customer focus.

Maintain and enhance the physical conditions of our public facilities.Maintain and enhance the physical conditions of our public facilities.

Examples of Objectives

Develop a customer intelligence database system to capture and analyze patterns in purchasing behavior across our product line.

Develop a customer intelligence database system to capture and analyze patterns in purchasing behavior across our product line.

Launch at least three value stream pilot projects to kick-off our transformation to a leaner organization.

Launch at least three value stream pilot projects to kick-off our transformation to a leaner organization.

Centralize the procurement process for improvements in enterprise-wide purchasing power.

Centralize the procurement process for improvements in enterprise-wide purchasing power.

Consolidate payable processing through a P-Card System over the next two years.Consolidate payable processing through a P-Card System over the next two years.

Monitor and address employee morale issues through an annual employee satisfaction survey across all business functions.

Monitor and address employee morale issues through an annual employee satisfaction survey across all business functions.


Values statement

Values: Beliefs that are shared among the stakeholders of an organization. Values drive an organization's culture and priorities and provide a framework in which decisions are made. For example, "Knowledge and skills are the keys to success" or "give a man bread and feed him for a day, but teach him to farm and feed him for life". These example values may set the priorities of self sufficiency over shelter.


Values statement

The values of an organisationEncourage unanimity in the way activities are carried out, thereby reducing internal conflict

Establish the climate, or culture, of the organisation

Establish the rights and obligations of staff

Specify standards for individual behaviours within the organisation.


Optional components of a mission statement

strategic distinctiveness

stakeholder promises

public image.


Strategic distinctiveness

Competitive differential advantages which can include:

superior customer service

perceived quality

public image

efficiency


Other components

stakeholder promises

values and beliefs

standards and behaviours

public image


Measuring success

evaluating mission statements

creating a sense of mission


Mission statement versus sense of mission

effective organisations take their mission seriously

knowledge and understanding of mission encourages better performance

effective strategic managers engender sense of mission in the organisation

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Chapter 4 Organisational Mission: Vision, Purpose And Values