PART 3: The Business Vision & Mission

Main Learning Objectives: Describe the nature and role of vision and mission statement. Identify the components of vision and mission statement. Evaluate mission statement for different organizations.

Vision Agreement on the basic vision for which the firm strives to achieve in the long run is critically important to the firm’s success.

Vision “What do we want to become?”

Comprehensive Mission Statement Vision Clear Business Vision Comprehensive Mission Statement

Shared Vision -- Vision & Mission Creates commonalty of interests Reduce daily routine Provides opportunity & challenge

Vision Statement Examples A national organization which represents its members in all aspects of poultry and eggs on both a national and international level -- U.S. Poultry & Egg Association

Vision Statement Examples The Vision of Manley Baptist Church is to be the people of God, on mission with God, motivated by a love for God, and a love for others -- Manley Baptist Church

Vision Statement Examples The Vision of USGS is to be a world leader in the natural sciences through our scientific excellence and responsiveness to society’s needs -- U.S. Geological Survey (USGS)

Vision Statement Examples To be the first choice in the printed communications business. The first choice is the best choice, and being the best is what Atlanta Web pledges to work hard at being—every day! -- Atlanta Web Printers, Inc.

Mission Statements -- 90% of all companies have used a mission statement in the previous five years

Mission Statements “What is our business?”

Mission Statements Enduring (Unchangeable) statement of purpose Distinguishes one firm from another Declares the firm’s reason for being

Creed (belief) statement Statement of purpose Statement of philosophy Mission Statements Also referred to as: Creed (belief) statement Statement of purpose Statement of philosophy Statement of business principles Creed عقيدة

Mission Statements Reveal what an organization wants to be and whom it wants to serve

Mission Statements Essential for effectively establishing objectives and formulating strategies

Vision & Mission Many organizations develop both vision & mission statements

Vision & Mission Profit & vision are necessary to effectively motivate a workforce

Vision & Mission Shared vision creates a community of interests

Developing Vision & Mission Clear mission is needed before alternative strategies can be formulated and implemented

Developing Vision & Mission Participation from diverse managers is important in developing the mission Diverse متنوع , مختلف

Mission Statement Examples Livestrong: To inspire and empower people affected by cancer. Oxfam: To create lasting solutions to poverty, hunger, and social injustice. CARE: To serve individuals and families in the poorest communities in the world. Advocate يدافع عن , يؤيد

Mission Statement Examples Heifer International: To work with communities to end hunger and poverty and care for the Earth. charity: water: We’re a non-profit organization bringing clean, safe drinking water to people in developing countries. Amnesty International: To undertake research and action focused on preventing and ending grave abuses of these rights. Advocate يدافع عن , يؤيد

Mission Statement Examples Human Rights Campaign is America’s largest civil rights organization working to achieve lesbian, gay, bisexual and transgender equality. Cleveland Clinic: To provide better care of the sick, investigation into their problems, and further education of those who serve. Save the Children: To inspire breakthroughs in the way the world treats children and to achieve immediate and lasting change in their lives. Advocate يدافع عن , يؤيد

Mission Statement Examples Doctors without Borders (Médecins Sans Frontières) works in nearly 70 countries providing medical aid to those most in need regardless of their race, religion, or political affiliation. Mayo Clinic: To inspire hope and contribute to health and well-being by providing the best care to every patient through integrated clinical practice, education and research. Advocate يدافع عن , يؤيد

The researchers proposed the following considerations: • Is your mission statement longer than 20 words? • Can you get it below 15? Below 10? • Design it to clearly communicate what you do in such a way that people can remember it and communicate this to others. • If you can’t get a mission statement below 15 words, consider also creating a mission tagline (2-6 words) which people can more easily remember. Advocate يدافع عن , يؤيد

Organizational Climate Focal point for work structure Importance of Mission Benefits from a strong mission Unanimity of Purpose Mission Resource Allocation Organizational Climate Unanimity اجماع Focal point for work structure

Effective Missions Broad in scope Generate strategic alternatives Not overly (going too far) specific Reconciles (bring together) interests among diverse stakeholders Overly بافراط

Effective Missions Finely balanced between specificity & generality Arouse positive feelings & emotions Motivate readers to action Generate favorable impression of the firm Arouse يثير , يحث , يوقظ

Effective Missions Reflect future growth Provide criteria for strategy selection Basis for generating & evaluating strategic options Are dynamic in nature

Mission & Customer Orientation -Vern McGinnis- Define what the organization is Define what it aspires to be Limited to exclude some ventures Broad enough to allow for growth Distinguishes firm from all others Stated clearly – understood by all Aspires تتوق , تطمح Ventures مغامرات , مضاربات

Mission & Customer Orientation An Effective Mission Statement -- Anticipates customer needs Identifies customer needs Provides product/service to satisfy customer needs Anticipates يتوقع

Social Policy & Mission Managerial philosophy shapes social policy -- Affects development of vision & mission Responsibilities to – Consumers Environmentalists Minorities Communities

Social Policy & Mission Social policy should be integrated in all strategic-management activities Mission should convey the social responsibility of the firm

Mission Statements 2005 Rated Best in Social Responsibility Fannie Mae Proctor & Gamble Intel Corporation St. Paul Companies Green Mtn. Coffee Deer & Company Avon Products, Inc. Hewlett-Packard Co. Agilent Technologies Ecolab, Inc. Imation Corp IBM

Vision & Mission Research results are mixed, however, firms with formal mission statements generally see a: Double the average return on shareholder’s equity Positive relationship to company performance 30% higher return on certain financial measures Equity أسهم

Mission Elements Products Services Markets Customers Technology Employees Survival Growth Profit Public Image Philosophy Self-Concept