2. The Business Vision & Mission DR. KHADIJAH OMAR UMT

Introduction We perhaps can best understand vision and mission by focusing on a business when it is first started. Vision and mission statements often can be found in the front of annual report Research conclude that companies have used a mission statement sometime in the previous five years

Vision ‘what do we want to become’ Vision statement should be establish first and foremost Preferably in a single sentence Go to page 76 for examples

Mission ‘What is our business’ Sometimes called ‘reason for being’ or creed statement Some firms develop mission statement simply because they feel it is fashionable rather than commitment

Should revisit vision and mission statements to realize benefits Review, reword and reaffirm the firm’s vision and mission

The ways of developing vision and mission statements commonly done – select articles about these statements and read ask managers to prepare for the statements then these statements merge into a single document and the draft will be distribute to all managers the modification done (addition, deletion) Some firms use discussion group or hire consultants to develop or modify existing statement

Importance of Vision and Mission Ensure unanimity of purpose Provide basis for allocating resources Establish general tone/climate Serve as a focal point Facilitate the translation of objectives into work structure To specify organizational purpose

Characteristics of a mission statement A mission statement should portray: A declaration of attitude A customer orientation 9 components of an effective statement

A declaration of attitude Mission statement are not designed to express concrete ends, rather to provide motivation, direction, image, tone, and philosophy. Vagueness leaves rooms to fill in details and modify the general. Mission should not be too lengthy. Broad in scope to allow generation/consideration of alternatives and reconcile the differences An effective mission statement generates the impression that a firm is successful, has direction, and is worthy of time, support and investment

A customer orientation A major reason for developing mission statement is to attract customers who give meaning to organization Good mission statements identify the utility of a firm’s products/service to its customers (AT&T’s mission statement focuses on telecommunication rather than telephone and EXXON mobil’s mission statement focuses on energy rather than oil and gas)

General characteristics of a good mission statement Broad in scope Less than 250 words Inspiring Identify the utility of firm’s product Reveal the firm’s social responsibility Reveal the firm’s environmental responsibility Include 9 necessary components Enduring

Mission Statement 9 Components Customers - who are the firm’s customers? Products or services – firm’s major products /services? Markets –geographically where does firm compete? Technology – current? Concern for survival, growth and profitability – committed to growth and financial soundness?

Mission Statement 9 Components Philosophy– basic beliefs, values, aspirations, ethics? Self-concept – distinctive competence or competitive advantage? Concern for public image – responsive to social, community and environmental concern? Concern for employees – are employees valuable assets to the firm?

Writing and evaluating mission statements There is no one best mission statement for a particular organization, so good judgment is required in evaluating mission statement A better mission statement is when it has more of the nine components in it and clear

Ten benefits of having clear mission and vision 1.achieve clarity of purpose 2.provide basis for all other strategic planning activities 3.provide direction 4.provide focal point for all stakeholders 5.Resolve divergent views

6.promote a sense of shared expectations 7.Project a sense of worth and intent to all stakeholders 8.Project an organized, motivated organization worthy of support 9.Achieve higher organizational performance 10.Achieve organizational synergy among employees and managers

Go to page 85 (Table 2-4) Essential components of a mission statement

Go to page 75 (table 2-1) Which mission statement is the best/worst?

The End TQVM