The Vision Trap

By:A V Raghu Vamshi 08IT-001Aseem Sidhu 08IT-009G Lakshmanan 08IT-012Praveen Sebastian 08IT-021Puneet Kukreja 08IT-022Rishabh Garg 08IT-025

A Case in Strategic Drift

Company : Timeline

Company : Timeline (Contd.)

Company : Timeline (Contd.)

Articulating a vision based on current short term objective

– (Beat Daisy)

Articulating a vision based on current short term objective

– (Beat Daisy)Mistake-1

Consequence

The Company paid heavily in terms of deteriorating

product quality, decreasing stock value and employee

burnout, aimlessness

The Company paid heavily in terms of deteriorating

product quality, decreasing stock value and employee

burnout, aimlessness

Management did not comprehend clearly, the definition of ‘Vision’

Letting the followers define the terms of Leadership

Letting the followers define the terms of LeadershipMistake-2

Consequence

Management did not comprehend clearly, the definition of ‘Vision’

A more grandiose vision partly based on customer

comments

A more grandiose vision partly based on customer

comments

Getting locked into the inappropriately defined vision

of ‘Leadership in Six Boxes’

Getting locked into the inappropriately defined vision

of ‘Leadership in Six Boxes’Mistake-3

Consequence

Management did not comprehend clearly, the definition of ‘Vision’

The company competed in non-core competence areas

and lost heavily

The company competed in non-core competence areas

and lost heavily

10x imperative – an even more abstract vision

10x imperative – an even more abstract visionMistake-4

Consequence

Management did not comprehend clearly, the definition of ‘Vision’

Loss of focus on improving internal processes. Focusing on customers did not yield

any results

Loss of focus on improving internal processes. Focusing on customers did not yield

any results

Changing the Way the World Designs. Together.

Changing the Way the World Designs. Together. Mistake-5

Consequence

Management did not comprehend clearly, the definition of ‘Vision’

Schedule slippage because of unending stream of problems

got 8.0 delayed.

Schedule slippage because of unending stream of problems

got 8.0 delayed.

The management should have..

What went right for the company was that of..

The attitude of “Believe in Yourself”

The acquisition of a Californian company

The Return to Basics – Getting the vision right this time

GM’s loss to Toyota

- A Modern example of ‘Strategic Drift’

"GM’s vision is to be the world leader in transportation products and related services. We

will earn our customers’ enthusiasm through continuous improvement driven by the integrity,

teamwork, and innovationof GM people."

Toyota becomes the World Leader..

• 24th April 2007 – Toyota ditches GM to take the No. 1 spot

• Main Drivers of Growth– Lean Production System– Pioneering Petrol / Electricity hybrid car – Prius– Camry, the most popular car in the US

Why GM lost out?

Focused on Gas Guzzling SUV’s – Strategy was fine as long as gas was cheap

Was late to enter the Hybrid car market – GM’s Volt still not released in the market

Labor Issues – Rising Labor cost

Thank You..!