“0TPR”Session 2 : Vision, Mission and Goals

COORDINATOR & FACILITATOR

Prof. Manoj Ghadge

Understanding of “Vision”

Mental picture of what an organization wants to achieve over time

– How things will look if the group is successful.

Provides guidance and inspiration as to what an organization is

focused on achieving in five, ten, or more years – a guiding force

– Where the group is headed.

It is what all employees understand their work every day

ultimately contributes towards accomplishing over the long term

– Total engagement with utmost commitment.

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Why should we have a “Vision”

What is the advantage?

- Forces peers & subordinates to think and demands the top

executives to do the same for the entire company

Who are involved in its formulation?

- Employees from all levels

“DIRECTION to an ORGANIZATION”

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The Known “FACTS” of Vision

One of the things leaders struggle with the most is communicating an

image of the future that draws others in - that speaks to what

others see and feel.

Leaders may change, but a clearly established vision encourages

people to focus on what's important.

Being forward-looking – envisioning/predicting exciting possibilities

and enlisting/engaging others in a shared view of the future – is

the attribute that most distinguishes leaders from non-leaders.

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Vision Statement

Is written concisely in an inspirational manner that makes it

easy for all employees to repeat it at any given time.

A vision statement should answer the basic question, “What

do we want to become?”

“MEANINGFUL”

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Vision Statements – Example(s)

They should be;

Compelling – forceful, convincing

Exciting – thrilling, stimulating

Focus attention – noticeable, interesting

Clear concepts – understandable, organized

Inspirational – encouraging, motivating

Gut-grabbing – appealing, recommending

Eg.:

Alzheimer Association: "Our Vision is a world without Alzheimer disease.”

Microsoft: "Empower people through great software anytime, anyplace, and on any device."

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Mission

Mission statement defines the present state or purpose of an

organization; purpose is a motivating factor and not a

differentiating factor – implications for companies

Explains why the organization exists ; What the group is

supposed to do (3 questions to be answered)

WHAT they do;

WHO they do it for; and

HOW they do what they do.

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Mission Statement

Mission statement defines the present state or

purpose of an organization;

Is in the form of a sentence or two, but for a shorter

timeframe (one to three years) than a Vision statement.

Is something that all employees should be able to articulate

upon request.

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Visionary Company – Example(s)

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Industry Company

Airplane Manufacturing Boeing

Automobile Manufacturing Ford

Computer/Electronic Apple, IBM, Compaq

Electric General Electric (GE)

Entertainment Walt Disney

Pharmaceuticals Merck, Johnson & Johnson

Retail Wal-Mart

The Vision Framework

Vision consists of 2 major components: –

1. Guiding Philosophy

2. Tangible Image

“They are related to each other yet distinct.”

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Organizational Vision“Guiding Philosophy and Tangible Image”

PURPOSE

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CoreBeliefs and

Values

Environment

VividDescription

Mission

Guiding Philosophy Tangible Image

The Indian way - Example

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Who are the clients/customers?

What product/ services do we provide?

What do we do the best?

What else do we do that no one else can do?

What values govern our work?

What is our purpose ?

Guiding philosophy, core values…..?

…………

Guiding Philosophy

‘Philosophy of life’

Originates from early leaders; must transcend thefounder

Important to know ‘who you are’ than ‘where youare going’

It is the ‘glue’ that holds the organization

“Do we really need that” – TATA NANO ( cost consciousand price conscious)

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Guiding Philosophy …

1. Core Values and Beliefs

Perception about what is important in

both business and life

Requires to no external justification/

have intrinsic value

Core values are independent of

environment

Companies can have 3-5 core values

E.g.:

Integrity, Respect, Concern, Fairness

Visionary Leaders

Thomas J. Watson (CEO, IBM,) :

Faithful adherence to sound set of

beliefs important in order to

survive and achieve success;

Change everything of an

organization as it moves through

corporate life except its beliefs.

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Examples

1. Quality will be a prime aspect of our product offering

2. Strive to reduce costs to offer reasonable priced drugs

3. Customers’ orders to be serviced promptly and accurately

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Guiding Philosophy …

2. Purpose

Purpose is “how the organization

fills its basic / fundamental

human needs.”

Purpose is the ‘reason for being’ ;

Should be able to guide for

100 years

Understanding

• “Purpose is a motivating factor, not a

differentiating factor” - implication

for Companies ?

• Purpose is an outgrowth of the

organization’s core values and beliefs

• “Maximize shareholder’s wealth” –

can it be a purpose ?

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Examples

Merck’s Purpose (1989)

Statement of Corporate Purpose:

We are in the business of

preserving and improving

human life. All of our actions

must be measured by our

success in achieving this.

Merck’s Purpose (1935)

Statement of Corporate Purpose (Fundamental enduring purpose; George Merck II):

[We] are workers in industry who

are genuinely inspired by the

ideals of advancement of

medical science, and of

service to humanity.

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Tangible Image…

What is it!

It clearly focuses on the

efforts of the organization.

It helps focusing people’s

attention on a specific goal.

It is bold, exciting, and

emotionally charged.

Convey

A sense of concreteness –

something vivid and real

A picture of future – dreams,

hopes, and aspirations.

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Tangible Image…

1. Mission

Mission statement is a clear and compelling goal unifying organization’s efforts.

Has a finish line and specific time frame for its achievement.

It engages people

Organizations may have mission at various level.

Mission is intuitive; need not be a sure bet .

FOUR - Approaches to setting a Mission

1. Targeting

2. Common Enemy

3. Role Model

4. Internal Transformation

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Approaches to Mission …

1. Targeting – setting a clear, definable target and aiming for it.

E.g.: Wal-Mart – setting a precise target of being $1 billion

company in 4 years (1997).

2. Common Enemy – to create a goal focused on defeating a

common enemy. Not to survive but to win E.g.: Pepsi’s

mission at one time to beat Coke.

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Approaches to Mission …

3. Role Model – these are set by small to mid-sized companies with

bright prospects in their industries. E.g.: GIRO Sport Design

Bicycling Products Co. used both targeting and role models in

setting its mission (of Nike Sports Shoes and Apple)

4. Internal Transformation – tend to be effective in old organizations

that need to dramatically change themselves in order to remain

competitive and healthy. E.g.: Standford University in 1990 with a

mission to create a new blend of teaching and research by the

year 2010.

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2. Vivid Description

What will be like to achieve the mission:

“The Tata Group will undoubtedly play an important role in

the continued development of our country, providing

leadership in various industrial segments in which they

operate and living by the value systems and ethical standards

on which our Group was founded……”

Mr. Ratan Tata’s last letter to employees as chairman of the TATA Group

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Why to have a Vision and Mission?

Vision:

- To bring a sense of collective identity

Mission:

- To make a profit doing what and for whom

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Formulation of Vision & Mission Statement

E.g. MDC(I), Merck Group KGaA, Germany

Collection of Shared Views - Everyone’s contribution and

understanding was taken into consideration

Formulated over a period of time without any hurry with a clear

understanding of every individuals’ role-play in the organization

“To develop intrinsically safe, environment friendly and cost-effective

innovative processes for the manufacture of APIs/Drug substances

adhering to total regulatory compliances and company’s code of

conduct”

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