Strategy & Mission Statement Development

Jim Collins: “Leadership is the process of alignment.” - Granite Rock Company - Southwest Airlines - HP - Ritz Carlton

When visions are clear...  Job satisfaction is higher  Greater commitment & loyalty  Esprit de Corps  Higher clarity about organizational values  Increased pride in the organization From The Leadership Challenge by Kouzes & Posner

The Functions Of Purpose  Providing a context for decision-making  Providing a yardstick for performance  Providing a focus for collaboration and shared responsibility  A motivator of excellence From High Performance Teams by Buckholz and Ross

Stock Market $2671 $415 Comparison Companies Visionary Companies $23063 Built To Last Visionary Companies: 1.Rock Solid Guiding Philosophy 2.A BHAG

Key Questions:  Who are our primary stakeholders?  What are their needs?  What do our customers want?  What principles or values will we be guided by?  How will we measure our success?  What will we look like in five years if successful?

Peter Block, The Empowered Manager  Forget about being number 1.  Don’t be practical.  Start with your customers.  How will we treat each other?  Make it radical and compelling. “If your vision is something you would be embarrassed to tell your mother about, then you’re on the right track.”

Communicating A Vision  Metaphors  Examples  Word Pictures  Quotations  Pictures  Analogies  Anecdotes  Slogans  Humor  Symbols

How well does senior management do in communicating the mission and vision of the organization? ExecutivesMiddle/First Level 47%Very Effectively8% 46%Somewhat Effectively18% 5%Not Too Effectively34% 1%Not At All Effectively34% 1%Not Sure3% From Credibility by Kouzes and Posner

Anita Roddick & The Body Shop  Saving The Rain Forest  Harvesting Brazil Nuts  Paper From Nepal  Stop Animal Testing  Amnesty International  Trade Not Aid  Saving The Whales  Planting trees  Saving The Hutu  Orphanages In Romania “It’s impossible to be inspired by a moisture cream.” “If you have an itsy bitsy vision, you have an itsy bitsy company.”

Dan Thomas, Knight Rider News Service “Our company will ethically provide a complete line of products and services to meet the dynamically changing needs of our corporate, group, and individual customers by innovatively developing new approaches using new technologies while simultaneously enhancing our employees’ lives and providing superior returns to our shareholders.”

Key Terms  Mission – What is our central purpose?  Vision – Who could we be in the future?  Principles – What standards will guide our operation?  Strategy – What steps or tactics are we going to use over the next ___ years to achieve our mission?  KSF’s – What are our key success factors?  Metrics – What key measures can we use to determine if we are accomplishing our mission?

What is Strategy?? Creating a unique and sustainable competitive position Assimilating, attaining, and extending best practices OperationalEffectivenessStrategicPositioning Run the same race fasterChoose to run a different race - Michael Porter, What Is Strategy? HBR, 1996

Five Tests of a Good Strategy  A unique value proposition compared to competitors  A different, tailored value chain  Clear tradeoffs, and choosing what not to do  Activities that fit together and reinforce each other  Continuity of strategy with continual improvement in realization  A unique value proposition compared to competitors  A different, tailored value chain  Clear tradeoffs, and choosing what not to do  Activities that fit together and reinforce each other  Continuity of strategy with continual improvement in realization - Michael Porter, What Is Strategy? HBR, 1996

 Question: “What is it about the direct sales model and mass customization that has been difficult for competitors to replicate?”  Answer “It’s not as simple as just having a direct sales force. It’s not as simple as just having mass customization in plant or manufacturing methodology. It’s a whole series of things in the value chain from the way we procure, the way we develop product, the way we order and have inventory levels, and manufacturer and service support. The entire value chain has to work together to make it efficient and effective.” Kevin Rollins, Vice Chairman Why Are Good Strategies Not Imitated? Source: Forbes ASAP, April 5, 1999

The Hedgehog Concept  What can we be the best in the world at?  What drives our economic engine?  What are we deeply passionate about? Focus on one key ratio: X / Y “They stick with what they understand and let their abilities and not their egos determine what they attempt.” - Warren Buffett From Good To Great by Jim Collins

Marriott School: “Our mission is to attract and develop men and women of faith, character, and professional ability who will become outstanding managers and leaders throughout the world.”

Marriott School Con’t: We Will Be Guided By:  Principles of the restored Gospel including faith in the Lord Jesus Christ, love of God and family, obedience to the commandments and compassionate service.  Pioneering and entrepreneurial spirit, encompassing vision, innovation, determination and hard work.  Appreciation for diversity in thought, ethnic and cultural backgrounds, experiences, and individual talents.  Passion for excellence  Commitment to lifelong learning and continuous improvement

Marriott School Con’t: Measures Of Our Success: The Satisfaction of our stakeholders:  The placement of our graduates  The recognition received for our programs  The cost effectiveness of our programs  The resources donated to the MSM  The leadership contributions made in professional responsibilities, community and church service

Center For Service & Learning: “Our mission is to provide every student with a meaningful service opportunity. We seek to instill in the heart and the mind a desire to give lifelong service.”

Center For Service & Learning Con’t: Our Credo:  Safety The safety of every student is paramount.  Respect We will show respect in every way for the dignity of the individual or agency served.  Reflection Reflecting should be an integral part of each service experience.  Selflessness Our motivation is to give, without expectation of reward  Meaning Our service opportunities will meet real and meaningful community needs.

Center For Service & Learning Con’t: Our Scorecard: We will measure our success by :  The quality of the service experience as measured through satisfaction and effectiveness surveys  The number of students involved in service experiences each year.  The number of agencies we assist.  The amount of reflection as measured by the amount of time spent in discussion or reflective learning after each service opportunity.  Percent of graduates involved in meaningful community service.

Microsoft: “Our vision is very simple: It is a computer on every desk and in every home, running Microsoft software.”

West Point “To provide the nation with leaders of character who provide the nation’s defense.”

Fannie Mae: “To strengthen the social fabric of America by further democratizing the home ownership process.”

Raychem Facilities “Our job is to uplift people’s spirits through beauty, cleanliness, and functionality, enthusiasm, good cheer, and excellence.” - Phil Turner

“The Ritz Carlton experience enlivens the senses, instills well being, and fulfills even the unexpressed wishes and needs of our customers.” - The Ritz Carlton Credo Ritz Carlton:

Disney: “We create happiness by providing the finest in entertainment to people of all ages everywhere.”

McDonalds: QSC&V:  Quality  Service  Cleanliness  Value

BYU Alumni Association: RSVP:  Revenues – Are we meeting financial goals?  Scope – Are we engaging our stakeholders in a variety of ways?  Volunteers – Are we maximizing the use of willing alumni?  Participants – How many of our alumni are we reaching with our services?

Levi Strauss: “We want a company that our people are proud of and committed to, where all employees have the opportunity to contribute, learn, grow, and advance based on merit, not politics or background. We want our people to feel respected, treated fairly, listened to, and involved. Above all we want satisfaction from accomplishments and friendships, balanced personal and professional lives, and to have fun in our endeavors.”

Jack Welch, GE: “Ten years from now we want people to write about GE as a place where people have the freedom to be creative, a place that brings out the best in everybody. An open, fair place where people have the sense that what they do matters, and where that sense of accomplishment is rewarded in both the pocket book and the soul. That will be our report card.”