1. Strategic Direction: Vision, Mission, Values
Chapter 3

2. Learning Objectives
How vision and mission statements provide effective strategic direction.
Process for developing vision statement.
Steps in developing effective mission statement.
Techniques for communicating vision and mission.
How principles and values can lead to superior performance.

3. Need for Coordination and Coherence
Many different departments and functions
Many levels from executives down to workers
Employees desire work to be meaningful
Different perspectives on the company and the market
Differences of opinion throughout the organization
Many ways of approaching the market

4. Strategy Planning Hierarchy

5. Guiding Statements Vision Mission Principles
What we want the company to become
Mission
How the company competes in the present
Principles
The moral and ethical foundations for the conduct of the company's business activities (both internal and external)

6. Practice in Fortune 500 Companies
% Using
Mission statement 33
Vision statement 18
Principles or Values statement 27
MVP – all three statements 5
(Source: West, 2014)

7. Possible Reasons for Low Usage
Diversification – many business units
Complexity of developing statements
Often involving entire company
Requires deep understanding, making choices, and commitment to focus
Indirect connection with performance

8. Continuity with the Present
Vision Statement
Incorporate foresight
Provides an "event horizon"
Connects with current capabilities
Incorporates enduring values
Is short
Is memorable
Image of the Future
Continuity with the Present
Useful

9. Memorable Visions Rubbermaid, 1990 JFK, 1961
"Aisle of Rubbermaid" in every store
JFK, 1961
"Put a man on the moon and return him safely to earth"
Jeff Bezos, Cadabra.com, 1994:
"Biggest bookstore" in the world

10. Developing the Vision
What do we hold to be true & meaningful, factors that should never change?
Why is our work meaningful? 10 years from now, what will we be proud of?
What are we particularly good at doing?
What compelling changes & opportunities should we seek to take advantage of?
Where will we be in 10 years?

11. Mission Statement
Captures immediate purpose of the company and its unique way of fulfilling that purpose
Short
Simple
Company specific
Actionable
Measurable

12. Poor Mission Statement
"Guided by relentless focus on our five imperatives, we will constantly strive to implement the critical initiatives required to achieve our vision. In doing this, we will deliver operational excellence in every corner of the Company and meet or exceed our commitments to the many constituencies we serve. All of our long-term strategies and short-term actions will be molded by a set of core values that are shared by each and every associate."
(Grocery Store Chain)
Short ?
Simple ?
Company
Specific ?
Actionable ?
Measurable ?

13. Statement of Principles (Values)
Increasingly expected by stakeholders
Usually articulates beliefs of senior management
Challenge is for employees to internalize espoused values
Each principle must be defined & explained
Management must regularly & continuously reinforce the principles, in word and deed

14. BB&T Principles
"10 core values represent our over-arching beliefs. Values provide the context for how we make decisions. Values enable us, as individuals, to live, be successful and achieve happiness. At BB&T, our values enable us to achieve our mission and corporate purpose."

15. Comprehensive Example
Our Vision To be the model for physician-led health care in America Our Mission To be your Medical Home Our Values As a physician owned and directed company, we are committed to ensuring that patient care is patient centered, safe, equitable, effective, efficient, and timely