Building Your Company’s Vision James C. Collins, and Jerry I. Porras, Building Your Company's Vision Harvard Business Review, Sep/Oct96, Vol. 74 Issue 5

Company Dynamics Companies that enjoy enduring success have fixed Core Values Core Purpose … and continuously adapt their Business strategies Practices

Articulating a Vision Core Ideology Envisioned Future Core Values Core Purpose Envisioned Future 10 – 30 year BHAG (Big, Hairy, Audacious Goal) Vivid Description Core Ideology is a concise word picture that defines the enduring character of an organization - a consistent identity that transcends: product or market life cycles technological breakthroughs management fads individual leaders Envisioned Future consists of two parts: a 10 -30 year audacious goal a vibrant, engaging and specific description of what it will be like to achieve the BHAG

Discovering Core Ideology What core values do we truly and passionately hold? Core Ideology is to guide and inspire It needs to be meaningful and inspirational only to people inside the organization Attracts people whose personal values are compatible with the company

Core Values Essential and enduring tenets of an organization Small set of timeless guiding principles Generally 3 – 5

Core Values are a Company’s Essential Tenets – examples: Merck Corporate social responsibility Unequivocal excellence in all aspects of the company Science-based innovation Honesty and integrity Profit, but profit from work that benefits humanity IBM Respect for the Individual The Best Customer Service Superior Accomplishment of all Tasks

Core Purpose The reason that the firm exists Reflects people’s idealistic motivation for doing the company’s work Should not be confused with specific goals or business strategies Inspires change Use the 5 Whys Why is that important? Why is that important?..........

Core Purpose Is a Company’s Reason for Being – examples: Merck To preserve and improve human life Mary Kay Cosmetics To give unlimited opportunity to women Walt Disney To make people happy Nike To experience the emotion of competition, winning, and crushing competitors McKinsey & Company To help leading corporations and governments to be more successful

Envisioned Future Vision level BHAG Vivid Description Big, Hairy, Audacious Goals Bold Missions – huge, daunting challenge Tangible, energizing, highly focused Vivid Description Vibrant, engaging, and specific description of what it will be like to achieve the BHAG Creating a picture people can carry in their heads Passion, emotion, and conviction are essential parts

Big, Hairy, Audacious Goals Become a $125 billion company by the year 2000 Crush Adidas Become the Harvard of the West Democratize the automobile We will destroy Yamaha Become the company most known for changing the worldwide poor-quality image of Japanese products Wal-Mart 1990 Nike 1960s Stanford 1940s Ford early 1900s Honda 1970s Sony early 1950s

Components of a Business Vision Core Values Core Purpose Business Vision Visionary Goals

Definitions Vision – the vision of an organization is a concise word picture of the organization at some future time, which sets the overall direction of the organization. A vision is something to be pursued, while a mission is something to be accomplished. The Mission Statement Book; Jeffery Abrahams, 1999

Definitions Values – the collective principles and ideals which guide the thoughts and actions of an individual, or a group of individuals. Value defines the character of an organization – they describe what the organization stands for. The Mission Statement Book; Jeffery Abrahams, 1999

Definitions Mission – a statement that specifies an organizations purpose or “reason for being.” It is the primary objective toward which the organization’s plans and programs should be aimed. The Mission Statement Book; Jeffery Abrahams, 1999