1. STRATEGIC VISION & MISSION
MISSION STATEMENTS
ENDURING STATEMENTS OF PURPOSE THAT DISTINGUISH ONE ORGANIZATION FROM OTHER SIMILAR FIRMS.
IDENTIFY THE SCOPE OF A FIRM’S OPERATIONS IN PRODUCT AND MARKET TERMS
“MISSION” tends to be concerned with the present…
“WHAT IS OUR BUSINESS?”
“VISION” focuses on our future…
“WHAT KIND OF BUSINESS ARE WE TRYING TO BECOME?”
“WHAT SHOULD OUR BUSINESS BE IN THE FUTURE?”
Questions to Address:
1—WHAT NEEDS ARE WE TRYING TO SATISFY?
2—WHO DO WE INTEND TO SERVE?
3—HOW WILL WE MEET THESE NEEDS?

2. VISION/MISSION STATEMENTS TEND TO CONTAIN THE FOLLOWING COMPONENTS…
PRINCIPAL PRODUCTS AND/OR SERVICES OFFERED
TARGETED CUSTOMERS AND/OR MARKETS
GEOGRAPHICAL DOMAIN TO BE SERVED
THE CORE TECHNOLOGIES THAT WILL BE USED
A PHILOSOPHICAL STATEMENT OF WHO THE COMPANY IS, AND HOW IT WILL CONDUCT BUSINESS

3. BROAD vs NARROW BUSINESS DEFINITIONS
BROAD NARROW
FURNITURE………………………WROUGHT IRON LAWN FURNITURE
FOOTWEAR………………………ATHLETIC FOOTWEAR
BEVERAGES………………………SOFT DRINKS
TRAVEL & TOURISM……...……SHIP CRUISES TO ALASKA
GLOBAL MAIL DELIVERY.……OVERNIGHT PACKAGE DELIVERY

4. THREE ASPECTS OF A WELL-CONCEIVED STRATEGIC VISION
1—UNDERSTANDING WHAT BUSINESS A COMPANY IS REALLY IN…
2—COMMUNICATING THE VISION AND MISSION IN WAYS THAT ARE CLEAR, EXCITING, AND INSPIRING…
3—KNOWING WHEN TO ALTER THE COMPANY’S STRATEGIC COURSE AND CHANGE IT’S MISSION…

5. EXAMPLES OF MISSION/VISION STATEMENTS
AVIS
OUR BUSINESS IS RENTING CARS, OUR MISSION IS TOTAL CUSTOMER SATISFACTION.
AMERICAN RED CROSS
THE MISSION OF THE AMERICAN RED CROSS IS TO IMPROVE THE QUALITY OF HUMAN LIFE; TO ENHANCE SELF-RELIANCE AND CONCERN FOR OTHERS; AND TO HELP PEOPLE AVOID, PREPARE FOR, AND COPE WITH EMERGENCIES.
OTIS ELEVATOR
OUR MISSION IS TO PROVIDE ANY CUSTOMER A MEANS OF MOVING PEOPLE AND THINGS UP, DOWN, AND SIDEWAYS OVER SHORT DISTANCES WITH HIGHER RELIABILITY THAT ANY SIMILAR ENTERPRISE IN THE WORLD.
McDONALDS
SERVING A LIMITED MENU OF HOT, TASTY FOOD QUICKLY, IN A CLEAN AND FRIENDLY RESTAURANT, FOR A GOOD VALUE, TO A BROAD BASE OF CUSTOMERS WORLDWIDE
POLAROID (old)
PERFECTING AND MARKETING INSTANT PHOTOGRAPHY TO SATISFY THE NEEDS OF MORE AFFLUENT US AND WEST EUROPEAN FAMILIES FOR AFFECTION, FRIENDSHIP, FOND MEMORIES, AND HUMOR.

6. MISSION STATEMENTS FOR FUNCTIONAL DEPARTMENTS
HUMAN RESOURCES
The mission of the human resources department is to contribute to organizational success by developing effective leaders, creating high performance teams, and maximizing the potential of individuals.
CLAIMS DEPARTMENT
The mission of the corporate claims department is to minimize the overall cost of liability, workers compensation, and property damage claims through competitive cost containment techniques and loss prevention and control programs.
SECURITY
The mission of corporate security is to provide services for the protection of corporate personnel and assets through preventive measures and investigations.

7. DRUCKER’S ORGANIZATIONAL OBJECTIVES
1—MARKET STANDING
2—INNOVATION
3—PRODUCTIVITY
4—PHYSICAL & FINANCIAL RESOURCES
5—PROFITABILITY
6—MANAGERIAL PERFORMANCE & DEVELOPMENT
7—WORKER PERFORMANCE & ATTITUDE
8—PUBLIC & COMMUNITY RESPONSIBILITY

8. POSSIBLE CORPORATE OBJECTIVES…
MARKET
MARKET SHARE, REPUTATION
PROFITABILITY
NET PROFITS, ROA, ROE, EPS
EFFICIENCY
LOW COSTS, REDUCED WASTE, LESS IDLE TIME
GROWTH
INCREASED UNIT SALES, INCREASED ASSETS
CUSTOMER SATISFACTION
QUALITY, SERVICE, RESPONSIVENESS
EMPLOYEE WELL-BEING
ABOVE-AVERAGE WAGES, JOB SECURITY
SOCIAL RESPONSIBILTIY
ETHICAL BEHAVIOR, CHARITABLE DONATIONS, COMMUNITY SUPPORT
SURVIVAL
AVOID BANKRUPTCY, KEEP OPERATIONS GOING

9. FINANCIAL vs STRATEGIC MARKET OBJECTIVES
FINANCIAL STRATEGIC MARKET
REVENUE GROWTH MARKET SHARE
EARNINGS GROWTH INDUSTRY RANK
PROFIT MARGINS QUALITY IMAGE
DIVIDENDS BREADTH OF PRODUCT LINE
BOND OR CREDIT RATINGS CUSTOMER SATISFACTION
CASH FLOWS CUSTOMER SERVICE
STOCK PRICES INNOVATION
EARNINGS STABILITY INTERNATIONAL EXPANSION
DIVERSIFIED REVENUE BASE

10. OBJECTIVES SHOULD… 1—RELATE TO A SINGLE, SPECIFIC TOPIC OR AREA
2—ACT AS GUIDELINES TO INDICATE WHAT NEEDS TO BE ACCOMPLISHED
3—FOCUS ON RESULTS TO BE ACHIEVED, NOT ACTIVITIES TO BE PERFORMED
4—BE CLEAR AND MEASURABLE
5—HAVE A SPECIFIC TIME DEADLINE
6—BE CHALLENGING, BUT ACHIEVABLE (MOTIVATING)
7—ACT AS PERFORMANCE STANDARDS WHICH CAN BE USED TO ASSESS ORGANIZATIONAL PROGRESS AND EFFECTIVENESS

11. EXAMPLES OF POOR OBJECTIVES
OUR OBJECTIVE IS TO…
MINIMIZE COSTS AND MAXIMIZE PROFITS
INCREASE SALES REVENUES AND UNIT VOLUME
BOOST ADVERTISING BY 15 %
BE A PIONEER IN RESEARCH AND DEVELOPMENT
BE THE MOST PROFITABLE FIRM IN THE INDUSTRY
EXPAND OUR SALESFORCE INTO NEW TERRITORIES
INCREASE OUR MARKET SHARE IN MEXICO BY 10%
AVOID GENERALITIES, BE SPECIFIC
STATE IN QUANTIFIABLE OR MEASURABLE TERMS
ESTABLISH A DEADLINE FOR ACHIEVEMENT
YOU CANNOT MANAGE WHAT YOU CANNOT MEASURE!

12. EVALUATION OF CORPORATE OBJECTIVES AND STRATEGIES
SCAN THE ANNUAL STOCKHOLDER REPORTS…
GO BACK 2-3 YEARS AND NOTE WHAT PROMISES WERE MADE IN THE ANNUAL MEETINGS AND STOCKHOLDER REPORTS
ARE SPECIFIC PROMISES MADE TO THE STOCKHOLDERS?
ARE SOME OF THESE PROMISES QUANTIFIABLE & EASILY MEASURED? (OBJECTIVES)
ARE SOME OF THEM ACTION PLANS OR STRATEGIC STEPS THEY INTEND TO TAKE? (STRATEGIES)
SEPARATE THESE PROMISES INTO THREE CATEGORIES: FINANCIAL OBJECTIVES, MARKET OBJECTIVES, & SSTRATEGIES
NOW REVIEW THE MOST RECENT STATEMENTS & REPORTS
DID THE STRATEGIES WORK WELL? SHOULD THEY BE REVISED?
WERE THE OBJECTIVES ACHIEVED? DO WE NEED TO CHANGE THEM?