CHAPTER 2 STRATEGY FORMULATION- VISION, MISSION AND PURPOSE DEFINITIONS:

A vision is more dreamt of than it is. Vision Statement is permanent statement of a company. Vision is future aspirations that lead to an inspiration. It defines the very purpose of existence of a company. The vision of a company is a direction for action for employees. The essence of a vision is forward looking view of what an organisation wishes to become.

CHARACTERISTICS OF A VISION STATEMENT 1. Inspiring and exhilarating. 2. It represents, a discontinuity, a step, a jump ahead to dream what it is to be. 3. Creation of common identity and share sense of purpose. 4. Competitive, original and unique and practical. 5. Foster risk taking and experimentation.
6. Foster long term thinking.

7. A vision is a statement about what your organization wants to become. 8. It should resonate with all members of the organization and help them feel proud, excited, and part of something much bigger than themselves. 9. A vision should stretch the organizations capabilities and image of itself. It gives shape and direction to the organizations future. 10. Visions range in length from a couple of words to several pages. 11. Shorter vision statements is recommended because people will tend to remember their shorter organizational vision.

DEVELOPING A VISION STATEMENT The vision statement includes vivid description of the organization as it effectively carries out its operations. Developing a vision statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational vision. Developing the vision can be the most enjoyable part of planning, but the part where time easily gets away from you
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Note that originally, the vision was a compelling description of the state and function of the organization once it had implemented the strategic plan, i.e., 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.

Strategic Vision

Strategic Vision is a road map showing the route a company intends to take in developing and strengthening the business. It defines Companys destination and provides rational for going there. It culminates in to a Mission Statement. Strategic Vision points an Organisation in a particular direction, charts a strategic path to follow for future and moulds the organisations identity. Strategic Vision is different from Mission Statement: Strategic Vision deals with where we are going, where as Mission Statement deals with Companys present business scope and purpose. A company Mission is guided by the buyers needs it seeks to satisfy, the customer groups and market segments it is endeavouring to serve, and the resources and technologies that it is deploying in trying to please customers and achieve a Market and Industry position.

Example of Strategic Vision The San Antonio Express News developed this Strategic Vision,

"EXPAND our customer base and enhance the franchise by pursuing multimedia opportunities. DELIVER an award-winning level of journalistic excellence, building public interest, trust and pride. PROVIDE vigorous community leadership and support. INSTILL an environment of internal and external excellence in customer service. EMPOWER and recognize each employee's unique contribution. ACHIEVE the highest standards of quality. IMPROVE financial strength and profitability."

MISSION STATEMENT

Thompson(1997) defines Mission as the essential purpose of the organisation, concerning particularly, why it is in existence, the nature of businesses it is in, and the customers it seeks to serve and satisfy Hunger and Wheelen(1999) say that mission is the purpose and reason for the organisations existence
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Mission statements could be formulated on the basis of vision that an entrepreneur decides on in the initial stages. A business mission helps to evolve an executive action. Mission of organisation is what it is and why it exists. It represents common purpose which the entire organisation shares and pursues. It is a guiding principle. Mission of a company is expressed it terms of products and geographical scope. It includes a methodology of attaining the desired goal in vision. It defines the competitive strength of a company and it emanates from corporate vision and strategic posture of a company. Thus the mission of a business is a statement, a build-up philosophy of its current and future expected position with regards to its products, market leadership. Mission is statement which defines the role of organisation plays in a society. The corporate mission is growth ambition of the firm

CHARACTERISTICS OF A MISSION STATEMENT 1. It should be feasible & It should be precise. 2. It should be clear & It should be distinctive. 3. It should be motivating. 4. It should be indicative of major component of strategy
5. It should be indicative of how objectives are to be accomplished.

MISSION STATEMENT CREATION

To create your mission statement, first identify your organizations winning idea. This is the idea or approach that will make your organization stand out from its competitors, and is the reason that customers will come to you and not your competitors. Next identify the key measures of your success. Make sure you choose the most important measures (and not too many of them!) Combine your winning idea and success measures into a tangible and measurable goal. Refine the words until you have a concise and precise statement of your mission, which expresses your ideas, measures and desired result.

NINE COMPONENTS OF MISSION STATEMENTS

1. Customers Who are the firms customers? 2. Products or services What are the firms major products or services?

3. Markets Geographically, where does the firm compete? 4. Concern for survival growth and profitability Is the firm committed to growth and financial soundness?
5. Philosophy What are the basic beliefs, values, aspirations, and ethical priorities of the

firm? 6. Technology Is the firm technologically current? 7. Self-concept What is the firms distinctive competence or major competitive advantage? 8. Concern for public image Is the firm responsive to social, community, and environmental concerns? 9. Concern for employees Are the employees a valuable asset to the firm?

DEVELOPING A MISSION STATEMENT 1. At is most basic; the mission statement describes the overall purpose of the organization. 2. If the organization elects to develop a vision statement before developing the mission statement, ask Why does the image, the vision exist -- what is its purpose? This purpose is often the same as the mission. 3. Developing a mission statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational mission. 4. 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. 5. 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. 6. Ensure that wording of the mission is to the extent that management and employees can infer some order of priorities in how products and services are delivered. 7. 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. 8. Does the mission statement include sufficient description that the statement clearly separates the mission of the organization from other organizations?

VALUES

Values are traits or qualities that are considered worthwhile; they represent an individuals highest priorities and deeply held driving forces. (Values are also known as core values and as governing values; they all refer to the same sentiment.) Value statements are grounded in values and define how people want to behave with each other in the organization. They are statements about how the organization will value customers, suppliers, and the internal community. Value statements describe actions which are the living enactment of the fundamental values held by most individuals within the organization. The values of each of the individuals in your workplace, along with their experience, upbringing, and so on, held together to form your corporate culture. The values of your senior leaders are especially important in the development of your culture. These leaders have a lot of power in your organization to set the course and environment and they have selected the staff for your workplace. If you think about your own life, your values form the cornerstones for all you do and accomplish. They define where you spend your time, if you are truly living your values. Each of you makes choices in life according to your most important four ten values. It is necessary to take the time to identify what is most important to you and to your organization.

DEVELOPING A VALUES STATEMENT

Values represent the core priorities in the organizations culture, including what drives members priorities and how they truly act in the organization, etc. Values are increasingly important in strategic planning. They often drive the intent and direction for organic planners. Developing a values statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational values. Establish four to six core values from which the organization would like to operate. Consider values of customers, shareholders, employees and the community. Notice any differences between the organizations preferred values and its true values (the values actually reflected by members behaviours in the organization). Record each preferred value on a flash card, then have each member rank the values with 1, 2, or 3 in terms of the priority needed by the organization with 3 indicating the value is very important to the organization and 1 is least important. Then go through the cards again to rank how people think the values are actually being enacted in the organization with 3 indicating the values are fully enacted and 1 indicating the value is hardly reflected at all. Then address discrepancies where a value is highly preferred (ranked with a 3), but hardly enacted (ranked with a 1). Incorporate into the strategic plan, actions to align actual behaviours with preferred behaviours.
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GOALS AND ACTION PLANS

After you have developed the key strategies, turn your attention to developing several goals that will enable you to accomplish each of your strategies. Goals should be SMART: Specific, Measurable, Achievable, Realistic and Time-based.

Once you have enabled strategy accomplishment through setting SMART goals, you will want to develop action plans to accomplish each goal. You will need to follow an action plan: Establish a cross section of professionals as a committee and meet to plan the sessions. Determine budget. Select topics based on member needs assessment. Plan advertising strategies, and so forth. Make action plans as detailed as you need them to be and integrate the individual steps into your planning system. An effective planning system, whether it uses a personal computer, a paper and pen system, a handheld computer or a Palm, will keep your goals and action plans on track and on target.

SAMPLES OF VALUES AND VALUE STATEMENTS

"To preserve and improve human life." (Merck) At Merck, "corporate conduct is inseparable from the conduct of individual employees in the performance of their work. Every Merck employee is responsible for adhering to business practices that are in accordance with the letter and spirit of the applicable laws and with ethical principles that reflect the highest standards of corporate and individual behaviour...

"At Merck, we are committed to the highest standards of ethics and integrity. We are responsible to our customers, to Merck employees and their families, to the environments we inhabit, and to the societies we serve worldwide. In discharging our responsibilities, we do not take professional or ethical shortcuts. Our interactions with all segments of society must reflect the high standards we profess." Patriot Ledger (SouthofBoston.com): "We have a total commitment to these values, shaping the way we do business for our employees, our customers and our company. Our employees are the most valued assets of our company, essential participants with a shared responsibility in fulfilling our mission. We recognize that the quality, motivation and performance of our employees are the key factors in achieving our success.

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