Chapter 4: Developing Mission, Vision, & Values Learning Objectives Understand the roles of mission, vision, and values in the planning process Understand how mission and vision fit into the P-O-L-C framework See how passion and creativity relate to vision Incorporate stakeholder interests into mission and vision Develop organizational mission and vision statements Apply mission, vision, and values to your personal and professional career  

Mission and Vision as P-O-L-C Components

MISSION, VISION, AND VALUES Ninety percent of 500 firms surveyed issue some form of mission and vision statements Firms with clearly communicated, widely understood, and collectively shared mission and vision have been shown to perform better than those without them Bain and Company

What is the difference? Mission Statements Vision Statements Communicates the organization’s reason for being, and how it aims to serve its key stakeholders Often integrates a summation of the firm’s values Mission statements tend to be longer than vision statements A future-oriented declaration of the organization’s purpose and aspirations. Addresses what a firm wants to become Vision statements tend to be relatively brief

Examples of Vision Statements Walmart: Save money. Live better. Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.

ROLES PLAYED BY MISSION AND VISION

MISSION and VISION ORGANIZING Facilitates strategy Defines roles and responsibilities Encourages coordinated efforts Creates and supports culture. Mission Vision Organizational Culture

MISSION, VISION, & LEADING Leading involves influencing others toward the attainment of organizational objectives

Controlling consists of three steps VISION, MISSION, and CONTROLLING Controlling consists of three steps Establish performance standards Compare actual performance against standards Take corrective action when necessary

Actual Versus Desired Performance Corrective Action Required? Mission and Vision Goals and Objectives Actual Versus Desired Performance Corrective Action Required?

Creativity and Passion help create Mission/Vision Creativity is the power or ability to invent Passion is an intense emotion compelling action Mission and Vision

Four Creativity Types

Creativity Tools SCAMPER Nominal Group Technique Substitute, Combine, Adapt, Modify, Put to other uses, Eliminate and Rearrange Inspires lateral thinking vs. programmed thinking Involves a reflective and probing style of asking questions Generates numerous creative ideas Ensures everyone is heard Effective when there is concern that some people may not be vocal Builds consensus Recommended when there is controversy or conflict

Government tends to be a key stakeholder for every organization Stakeholders Government tends to be a key stakeholder for every organization  

Stakeholder Categories

Stakeholders, Mission, and Vision Stakeholder Mapping Importance Influence

Steps in Identifying Stakeholders Step 1: Determining Influences on Mission, Vision, and Strategy Formulation Step 2: Determining the Effects of Key Decisions on the Stakeholder   Step 3: Determining Stakeholders' Power and Influence over Decisions

Communication is Critical upward downward

Communicating Across and Outward The need will likely exist to communicate with other units of the firm (across) and with key external stakeholders, such as material and capital providers and customers (outward)

DEVELOPING YOUR PERSONAL VISION & MISSION Would a mission and vision statement be beneficial to you? What are some guidelines for developing your mission and vision?