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Business Strategy Review
Mission Vision and Values
In the Practical Strategy guide I make the point that strategy execution, or lack there of, is the major business issue in today’s fast paced environment. If a lack of action is a major problem then a not so minor contributing factor can often be the lack of a clear business fundamentals, which help set the direction and aspirations of the organization.
The business fundamentals I refer to are mission, vision and values.
The Mission Statement 1
At its most basic, the mission statement describes the overall purpose of the organisation.
Developing a mission statement can range from a quick talk fest, to participants using methods ranging from highly analytical and rational, to highly creative focused discussions, through to divergent experiences around daydreams, sharing stories, etc. My advice… take a small team, with representation from through-out the organization, add a creative environment and white board and see what happens.
When wording the mission statement, consider the organization’s products, services, markets, values, and concern for public image, and maybe priorities of activities for survival/goal achievement. Consider any changes that may be needed in wording of the mission statement because of any new suggested strategies during a recent strategic planning process.
Ensure that wording of the mission aims to share the extent that management and employees can infer some order of priorities in how products and services are delivered. When refining the mission, a useful exercise is to add or delete a word from the mission to realize the change in scope of the mission statement and assess how concise is its wording.
Finally does the mission statement include sufficient description that the statement clearly separates the mission of the organization from other competitive organizations?
An example... “Create an organization that focuses on being Number 1 by being Customer Driven”
The Vision Statement
Originally, the vision was a compelling description of the end game i.e. the state and function of the organization once it had implemented the strategic plan and/or a very attractive image toward which the organization was attracted and guided by the strategic plan.
Recently, the vision has become more of a motivational tool, too often including highly idealistic phrasing and activities which the organization cannot realistically aspire.
The vision statement includes vivid description of the organization as it effectively carries out its operations.
If the organisation elects to develop a vision statement before developing the mission statement, ask “Why does the image, the vision exist -- what is it’s purpose?” This purpose is often the same as the mission, if so, don’t loose to much sleep, just make sure it makes sense to those that must deliver it!
Developing a mission and vision can be a lot of fun but it can also be torturous, particularly if you’re trying to do it in a semi large group of people with strong views. However through the torture, strong statements that bind the organisational direction and aspiration, often occur. Good mission and vision, like good wine, just work, but sometimes they need a little time to settle in, a bit of reflection time, before the collective understanding and buy-in occurs, (particularly if your going through strong to moderate strategy change – aka new boss, new direction time!)
It would be egotistical to say what is right and what is wrong with regards to mission and vision, this is for each organization to decide. However mission and vision statements are just that, statements, so no need to right a book on them, they are useless unless they can be recalled staff or at least the staff you want to help transform the organization.
My golden rule with mission and vision: DO NOT get to caught up in over developing the world’s ‘best’ mission and vision (especially first time round). In my experience, by the time you have figured out exactly what they are, created senior management buy-in, months will pass, your customers will be enjoying your competitor’s offers and your staff will be working for them.
If you can’t develop them with in a day or so, move on to your values and goal, because it is these fundamentals that can really make or break your strategies and the ability to achieve them.
Values
Organizational values largely set the culture that will drive organizational behavior. Values are beliefs of a person or social group in which they have an emotional investment (either for or against something). Organisational and personal values need some level of alignment for personal and organisation success.
Values are often overlooked in strategic development, but in my experience, when personal and organisational values align then a thing called synergy can happen, and in business that is ‘gold’.
Some examples of value statements…
• Communication - We will proactive communicate with our customers, staff and shareholders
• Honesty & Integrity– We will act with honesty and integrity in everything we do, we do not just act, we act with honesty and integrity
• Succession - we prefer to have staff succeed to higher roles, rather than recruit from outside whenever a win-win (personal and organisational) relationship can be created
• Support – we will offer personal and organisational support to growth and vitality
Values should continually ‘stretch’, provoke and challenge the organisation to higher levels of performance while conforming to established ethical standards.
Once agreed, the Board and senior management have a leadership role in ensuring the values are embedded into the strategies and day to day actions, that drive the organisation.
Finally, do the above comments just apply to ‘complex’ big business? NO not at all! The business fundamentals discussed are critical for all businesses looking to grow, no matter if you are a ‘busy’ two person husband and wife team or ‘complex’ British Petroleum.
Mission & Vision Adapted from Basics of Developing Mission, Vision and Values Statements, Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. 1997-2007 |
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