Vision : : (Ultimate goal)

The creation of a vision statement can be a great asset to just about any type of organization.
Essentially, a vision statement takes into account the current status of the organization, and serves to
point the direction of where the organization wishes to go. As a means of setting a central goal that
the organization will aspire to reach, the vision statement helps to provide a focus for the mission of
the corporation, business, or non-profit entity. Here is some information about the construction of a
vision statement.

The vision statement, by contrast, is not about what the company currently is, but what the company
hopes to become. As an example, a vision statement may acknowledge that the company already
meets industry standards in customer support, while at the same time setting goals for moving
customer care to a higher level within a given time period.

WHY VISION IS NEED FOR US::

As a means of reaching toward the future, a properly drafted vision statement can provide motivation
and inspiration, without stifling creativity in finding the way to the ultimate aim of the statement.

EG ::

The vision statement, by contrast, is not about what the company currently is, but what the
company hopes to become. As an example, a vision statement may acknowledge that the company
already meets industry standards in customer support, while at the same time setting goals for
moving customer care to a higher level within a given time period

Vision eg
.
"No child in our city will go hungry to bed in the evening." (Soup kitchen)

Vision EG::

'An Image of the future we seek to create'.

An effective vision should be:

 Vividly imaginable: Conveys a clear picture of what the future will look like
 Desirable: Appeals to the long-term interests of employees and other stakeholders
 Compelling: Is so much better than the current state that people will gladly undertake the
effort and sacrifices necessary to attain it
 Realistic: Comprises feasible goals that are attainable for a hardworking group of people
 Focused: Limits itself to a manageable and coherent set of goals and is clear enough to
provide guidance to others in decision making
 Flexible: Is general enough to be adapted to changing circumstances
 Easy to communicate: Can be successfully and succinctly explained to people throughout
different levels of your organization

Consider the following example of an effective vision, taken from a large corporation:

"It's our goal to become the world leader in the pharmaceutical industry within 10 years. This means
we will increase profits, focus more on customer-centered innovation, offer better employee benefits
than any of our competitors. Achieving this objective will require that we become more globally
focused. If we all work together, we can achieve this vision."

Here is another example of an effective vision, from a business unit:

"It is our aim to reduce our costs by at least 25% and increase our sales group's revenues by at least
25%. These are stretch goals but, based on our analysis, we know they are achievable within four
years if we all work together. When this is done, our unit will be publicly recognized for our
achievement. Likewise, our unit will serve as a model for process improvement across the
organization."

Be sure that the vision you craft is consistent with your organization's overall mission. A vision should
appeal to an organization's core values—the guiding principles by which the organization navigates—
like honesty, creativity, or social responsibility. It should also draw upon an organization's core
purpose—its most fundamental reason for being—like helping people to do something or improving a
practice worldwide.

Mission : :

Mission statements are formal written pronouncements of the core purpose of a business or other
type of organization. In some cases, a mission statement is relatively brief and uncomplicated. At
other times, a mission statement may be longer and somewhat more detailed. The exact structure of
the statement will depend on the type of organization drafting the document, as well as the reason
for the organization’s existence.

WHY IT IS REQUIRED::

With businesses, there are generally four key factors that are addressed in the text of the mission
statement. The central issue is to address the aim and purpose of the company, using verbiage that is
clear, concise, and as brief as possible. This central affirmation forms the basis for the rest of the
document, and helps to convey the relevance of the other factors included within the text.
Characteristics of a Mission Statement
 
A mission statement defines the basic reason for the existence of that organisation. Such a statement
reflects the corporate philosophy, identity, character,
and image of an organisation. It may be defined explicitly or could be deduced from the
management’s actions, decisions, or the chief executive’s press statements. When explicitly defined
it provides enlightenment to the insiders and outsiders on what the organisation stands for. In order
to be effective, a mission statement should possess the following seven characteristics.
 
1. It should be feasible. A mission should always aim high but it should not be an impossible
statement. It should be realistic and achievableits followers must find it to be credible. But feasibility
depends on the resources available to work towards a mission.
 
2. It should be precise. A mission statement should not be so narrow as to restrict the organisation’s
activities nor should it be too broad to make itself meaningless. For instance, ‘Manufacturing
bicycles’ is a narrow mission statement since it severely limits the organisation’s activities, while
mobility business’ is too broad a term as it does not define the reasonable contour within which the
organisation could operate.
 
3. It should be clear. A mission should be clear enough to lead to action. It should not be a high
sounding set of platitudes meant for publicity purposes. Many organisations do adopt such statements
but probably they do so for emphasizing their identity and character. For example, Asian Paints
stresses ‘leadership through excellence’, while India Today sees itself as ‘the complete news
magazine’. The Administrative Staff College of India considers itself as ‘the college for practicing
managers’ and Bajaj Auto believes in ‘Providing, value for money, for years’. To be useful, a mission
statement should be clear enough to lead to action. 
 
4. It should be motivating. A mission statement should be motivating for members of the organisation
and of society, and they should feel it worthwhile working for such an organisation or being its
customers. A bank, which lays great emphasis on customer service is likely to motivate its employees
to serve its customers well and to attract clients. Customer service, therefore is an important
purpose for a banking institution.
 
5. It should be distinctive. A mission statement, which is indiscriminate, is likely to have little impact.
If all scooter manufacturers defined their mission in a similar fashion,there would not be much of a
difference among them. But if one defines it as providing scooters that would provide ‘value for
money, for years’,like Bajaj, it will create an important distinction in the public mind.
 
6. It should indicate major components of strategy.
A mission statement along with the organisational purpose should indicate the major components of
the strategy to be adopted.
 
The chief executive of Indal expressed his intentions by saying that his company “begins its fifth
decade of committed entrepreneurship with the promise of a highly diversified company retaining
aluminium as its mainline business, but with an active presence in the chemical, electronics and
industrial equipment business”. This statement indicates that the company is likely to follow a
combination of stability, growth and diversification strategies in the future.
 
7. It should indicate how objectives are to be
accomplished. Besides indicating the broad strategies to be adopted a mission statement should also
provide clues regarding the manner in which the objectives are to be accomplished.
 
 

COMPONENTS OF AN EFFECTIVE MISSION STATEMENT

 
 
Mission statements can and do vary in length, content, format and specificity.  Most practitioners and
academicians of strategic management consider an effectively written mission statement to exhibit
nine characteristics or mission statement components.  Since a mission statement is often the most
visible and public part of the strategic management process, it is important that it include most, if
not all, of these essential components.  Components and corresponding questions that a mission
statement should answer are given here.
 
 
1.  Customers:  Who are the enterprise's customers?
2.  Products or services: What are the firm's major products or services?
3. Markets: Where does the firm compete?
4. Technology: What is the firm's basic technology?
5. Concern for survival, growth, and profitability:  What is the firm's commitment towards economic
objectives?
6. Philosophy: What are the basic beliefs, core values, aspirations and philosophical priorities of the
firm?
7. Self-concept: What are the firm's major strengths and competitive advantages?
8. Concern for public image: What is the firm's public image?
9. Concern for employees: What is the firm's attitude/orientation towards employees?
SMART

Characteristics of Good Objectives

by Phil Bartle, PhD

Workshop Handout

An objective is more specific than a goal; in what ways? A Good Objective is SMART

In preparing a project design, and when writing a proposal (for approval or for requesting funds), the
goals of the project are stated. The goal is easily defined as the solution to the problem that has been
identified. The problem with such a "goal" is that it is too general; it is not easy to obtain consensus
as to when it has been reached.

That is why, when preparing project documents, a distinction is made between a "goal" and an
"objective." An objective is derived from a goal, has the same intention as a goal, but it is more
specific, quantifiable and verifiable than the goal.

Let us say that the problem identified by community members is "Lack of clean drinking water." The
solution to that problem, the goal, then is "To bring clean drinking water to the community." You can
demonstrate to the group the vagueness of this goal by going out of the room and returning with a
single glass of water, showing it to them. "OK, here is some water. I have brought it to the
community. Now, is the project complete? Have we achieved the goal?"

Of course they might laugh or say that it was obvious that they did not mean only a glass of water
when they said, "To bring clean drinking water to the community." Your reply is then that the project
design or proposal must be very specific about each objective, so that there can be no room for
different interpretations.

Remember, every objective must start with the word , "To." An easy way to remember the
characteristics of a good objective, is the acronym, "SMART." It stands for "Specific, Measurable,
Achievable, Realistic and Time-Bound."

S pecific
M easurable
A chievable
R ealistic
T ime-Bound

When identifying objectives as part of an exercise in preparing a project design or proposal, use the
SMART acronym as a check list, to see if the objective is a good objective. (Making sure each
objective begins with the word, "To.") The objectives must be derived from, and consistent with, the
intention of the identified goals.

The objectives of a project should be "SMART." They should be:

S pecific: clear about what, where, when, and how the situation will be changed;

M easurable: able to quantify the targets and benefits;

A chievable: able to attain the objectives

               (knowing the resources and capacities at the disposal of the community);

R ealistic: able to obtain the level of change reflected in the objective; and

T ime bound: stating the time period in which they will each be accomplished.

 
Goals vs Objectives

When you have something you want to accomplish, it is important to set both goals and objectives.
Once you learn the difference between goals and objectives, you will realize that how important it is
that you have both of them. Goals without objectives can never be accomplished while objectives
without goals will never get you to where you want to be. The two concepts are separate but related
and will help you to be who you want to be.

Definition of Goals and Objectives

Goals – are long-term aims that you want to accomplish.
Objectives – are concrete attainments that can be achieved by following a certain number of steps.
Goals and objectives are often used interchangeably, but the main difference comes in their level of
concreteness. Objectives are very concrete, whereas goals are less structured.

Remembering the Differences between Goals and Objectives

When you are giving a presentation to a potential or current employer, knowing the difference
between goals and objectives can be crucial to the acceptance of your proposal. Here is an easy way
to remember how they differ:
Goals – has the word “go” in it. Your goals should go forward in a specific direction. However, goals
are more about everything you accomplish on your journey, rather than getting to that distant point.
Goals will often go into undiscovered territory and you therefore can’t even know where the end will
be.

Objectives – has the word “object” in it. Objects are concrete. They are something that you can hold
in your hand. Because of this, your objectives can be clearly outlined with timelines, budgets, and
personnel needs. Every area of each objective should be firm.

Measuring Goals and Objectives

Goals – unfortunately, there is no set way in which to measure the accomplishment of your goals. You
may feel that you are closer, but since goals are de facto nebulous, you can never say for sure that
you have definitively achieved them.

Objectives – can be measured. Simply phrase your objective in the form of a question. For example,
“I want to accomplish x in y amount of time” becomes “Did I accomplish x in y amount of time?” This
can easily be answered in a yes or no form.

Examples of Goals and Objectives

Goals – I want to be a better ball player. I want to learn more about Chinese history. I want to
maximize my professional performance.
Objectives – I want to memorize the periodic table before my next quiz. I want to increase my sales
by 10% this month. I want learn to play “Freebird” on the guitar.
Summary:
1. Goals and objectives are both tools for accomplishing what you want to achieve.
2. Goals are long term and objectives are usually accomplished in the short or medium term.
3. Goals are nebulous and you can’t definitively say you have accomplished one whereas the success
of an objective can easily be measured.
4. Goals are hard to quantify or put in a timeline, but objectives should be given a timeline to be
more effective.

A CORE COMPETENCY

Introduction of Core competence-2

Core competencies are those capabilities that are critical to a business achieving competitive
advantage. The starting point for analysing core competencies is recognising that competition
between businesses is as much a race for competence mastery as it is for market position and market
power. Senior management cannot focus on all activities of a business and the competencies required
to undertake them. So the goal is for management to focus attention on competencies that really
affect competitive advantage.

The Work of Hamel and Prahalad

The main ideas about Core Competencies where developed by C K Prahalad and G Hamel through a
series of articles in the Harvard Business Review followed by a best-selling book - Competing for the
Future. Their central idea is that over time companies may develop key areas of expertise which are
distinctive to that company and critical to the company's long term growth.

'In the 1990s managers will be judged on their ability to identify, cultivate, and exploit
the core competencies that make growth possible - indeed, they'll have to rethink the
concept of the corporation it self.' C K Prahalad and G Hamel 1990
These areas of expertise may be in any area but are most likely to develop in the critical, central
areas of the company where the most value is added to its products.

For example, for a manufacturer of electronic equipment, key areas of expertise could be in the
design of the electronic components and circuits. For a ceramics manufacturer, they could be the
routines and processes at the heart of the production process. For a software company the key skills
may be in the overall simplicity and utility of the program for users or alternatively in the high quality
of software code writing they have achieved.

Core Competencies are not seen as being fixed. Core Competencies should change in response to
changes in the company's environment. They are flexible and evolve over time. As a business evolves
and adapts to new circumstances and opportunities, so its Core Competencies will have to adapt and
change.

Identifying Core Competencies

Prahalad and Hamel suggest three factors to help identify core competencies in any business:

What does the Core Comments / Examples

Competence Achieve?
Provides potential The key core competencies here are those that enable the creation of new
access to a wide products and services.
variety of markets
Example: Why has Saga established such a strong leadership in supplying
financial services (e.g. insurance) and holidays to the older generation?

Core Competencies that enable Saga to enter apparently different

markets:
 - Clear distinctive brand proposition that focuses solely on a closely-
defined customer group

- Leading direct marketing skills - database management; direct-mailing

campaigns; call centre sales conversion

- Skills in customer relationship management

Makes a significant Core competencies are the skills that enable a business to deliver a
contribution to the fundamental customer benefit - in other words: what is it that causes
perceived customer customers to choose one product over another? To identify core
benefits of the end competencies in a particular market, ask questions such as "why is the
product customer willing to pay more or less for one product or service than
another?" "What is a customer actually paying for?

Example: Why have Tesco been so successful in capturing leadership of

the market for online grocery shopping?

Core competencies that mean customers value the Tesco.com experience so

highly:

- Designing and implementing supply systems that effectively link existing

shops with the Tesco.com web site

- Ability to design and deliver a "customer interface" that personalises online

shopping and makes it more efficient

- Reliable and efficient delivery infrastructure (product picking, distribution,

customer satisfaction handling)
Difficult for A core competence should be "competitively unique": In many industries,
competitors to imitate most skills can be considered a prerequisite for participation and do not
provide any significant competitor differentiation. To qualify as "core", a
competence should be something that other competitors wish they had
within their own business.

Example:Why does Dell have such a strong position in the personal

computer market?

Core competencies that are difficult for the competition to imitate:

- Online customer "bespoking" of each computer built

- Minimisation of working capital in the production process

- High manufacturing and distribution quality - reliable products at

competitive prices

A competence which is central to the business's operations but which is not exceptional in some way
should not be considered as a core competence, as it will not differentiate the business from any
other similar businesses. For example, a process which uses common computer components and is
staffed by people with only basic training cannot be regarded as a core competence. Such a process is
highly unlikely to generate a differentiated advantage over rival businesses. However it is possible to
develop such a process into a core competence with suitable investment in equipment and training.

It follows from the concept of Core Competencies that resources that are standardised or easily
available will not enable a business to achieve a competitive advantage over rivals.

CRAFTING Strategy For a Competitive Advantage

Strategy is the competitive moves and business approaches for growing the business, creating a
market position, attracting and satisfying customers, competing successfully, conducting operation,
and achieving target objectives.

When creating strategy, you can utilize a number of different actions:

 Gain sales and market share via lower prices, more performance and features, better
quality, or appealing design
 Diversify into new businesses
 Strengthen competitive capabilities and shore-up competitive weaknesses
 Define how key organizational activities are to be handles by management
 Pursue new market opportunities and defend against threats
 Create strategic alliances and collaborative partnerships
 Establish a Merger or Acquisition with your rival
 Enter new product markets
 Respond to changing market conditions and external circumstances

Your strategy should be aimed at creating a product or service that is distinctive from what the
competitors are offering or at developing competitive capabilities that they can not quite match. A
powerful strategy can make you distinctive which will tilt the playing field in their favor by creating a
sustainable competitive advantage.

Strategy should blend both proactive actions to improve your market position and financial
performance and reactions to unanticipated developments and market conditions. The biggest portion
of your current strategy flows from previous business approaches that are working well to merit
launching of new initiative to strengthen the overall positions and performance.

All strategic plans should be viewed as work in progress. Changing circumstances and market
conditions cause a strategy to emerge and change over time. Strategy should be considered
temporary outcomes that respond to market changes and constant experimentation and
modifications. A winning strategy should fit with the organizations external and internal situation,
build sustainable competitive advantage, and improve the performance.

Dr. Doreen McGunagle is the CEO of Global Strategic Management Solutions. She is an organizational
consultant, facilitator, and speaker. She has more than 20 years experience working with Fortune
1000 companies. Dr. McGunagle mentors, advises, and coaches leaders on key strategy issues that
improve market performance and gross profits. An accomplished writer and professor: her
publications include The Chinese Auto Industry: Taming the Dragon. Her educational background
includes

STRATEGIC MANAGEMENT PROCESS