Vision Setting

Tools & Frameworks

There are those who look at

things the way they are, and
ask why... I dream of things that
never were, and ask why not?
Robert Kennedy

Ashleigh McDougall

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 Vision....often quoted, rarely practiced

There are those who look at things the way they are, and ask why... I
dream of things that never were, and ask why not?
Robert Kennedy

Good business leaders create a vision, articulate the vision,

passionately own the vision, and relentlessly drive it to completion.
Jack Welch

A leader has the vision and conviction that a dream can be achieved.
He inspires the power and energy to get it done.
Ralph Lauren

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The Flow

What is Vision
Applications
Methodology
Business Example
Key Sources

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 Vision: An inspirational description of what success will be
at a particular time in future

An effective vision:

Creates a vivid mental image of the

desired future state

Sets the broad long-term direction

that does not fluctuate from year to
year

Inspires those who pursue it and

pushes the organization/individuals to
see what they can become

Ambitious but actionable, focused on

the future but grounded in today

Provides focus: Specific enough that

everyone can use it to decide if their
work is moving the company forward.*

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*Stever Robbins Inc
What are the key elements of a good vision statement?

A vision statement should reflect three key elements:

1. Purpose: It answers the question Why does the organization exist?

. It clarifies from a customer perspective what business are we really
in?

2. Core Values: Provides broad guidelines on How to proceed according

to values

The
3. best visions. Future: This answers the question : Where/What do we
Envisioned
want to get?
The best visions imply whom the company
serves, what it provides and what
distinguishes it from other companies
providing the same products and services.

The vision tells us the market, product, the

distinguisher, and the progress measurement.*

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 Why set a vision? A vision establishes broad direction and
is essential for prioritizing opportunities and guiding
strategy and tactics
Vision lays out a destination; your destination guides your strategy; and strategy
chooses action.*
Description Determines Example
Timeless, broad direction, ideal state Major markets
Internally generated Major
Vision Go West, young man.
Specific enough to know what to say uniqueness/skill/advantage
No to Possible strategies
Time specific , competitors, market Market segments to pursue
conditions Which relationships to pursue Were going West, but we ran
Strate Answers the question, How do we (distributors, complementors, into this grand canyon. We
gy achieve our vision in the current customers) can go around to the North or
market, regulatory, and competitive Organization structure and South. Lets choose South.
environment? priorities
Goal, typically < 1 year We will travel 800km West by
Tactic To be achieved with existing resources, Day-to-day actions to take car daily and be 60% of the
market structures, etc way by year end.

At the end of the day, your vision exists to drive tactics and provide guidance to
individuals to help them effectively prioritize opportunities and allocate resources
when faced with tradeoffs

Without vision, you/the organisation no doubt will wind up somewhereyou just

dont know where

* Source: Stever Robbins Inc.

 Vision, purpose, mission and goals are often confused as they hold
different meanings to different people
While many organizations use mission and vision interchangeably, they do distinctly
different jobs
Purpose (often called mission)
WHY we exist?
statements are present-based and
designed to convey a sense of why
WHAT we aim to the company exists to both members
achieve? of the company and the external
HOW we plan to community.
achieve our vision?
Purpose Vision statements are future-based
WHAT we stand for and are meant to inspire and give
and how we behave?
Vision
HOW we direction to employees, not
Mission differentiate from our externally Where do I see my
competitors? business going ?
Values
It is important for each organization
Positioning
to clarify and agree what each of
these terms mean

To be effective, a vision should not be confused with a goal

Vision Goals

Abstract ambition thats difficult to measure Tangible and SMART

The big picture of how the organization will What we will do to achieve our vision
look when it has achieved its goals
Can be both short term and long term
Longer term view (10+ yrs)
Actionable
Inspirational
SMART = Specific, Measurable, Realistic, Attainable and Time bound 7
* Source: Stever Robbins Inc., http://www.businessnewsdaily.com/3882-vision-statement.html
The Flow

Key Sources
What is Vision
Applications
Methodology
Business Example

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Applications of Vision Setting for Shell projects

1. Vision setting can be performed at the corporate, business

unit or country level. Once set, vision should provide long
term direction but strategy and goals will need to evolve.

2. Vision setting may be relevant in a variety of projects

where scenario planning / setting strategic direction is
required; however it is important to determine if vision
setting is required or if the team will be working on strategy
within an existing vision:
CoB Growth Plans (5 years +)
OU Integrated Strategy Reviews (normally 10 year view)
Segment / Sector specific growth plans (5 years +)
Organizational change projects (blueprint for Downstream-One)

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 Examples of mission statements: There is no cookie cutter
model for a great mission statement, but rather
organizational culture is the driving force

There are four basic types of vision statements with examples of each:

1. Role-Model Which style best

. To preserve and improve human life Merck fits your vision?
. To give unlimited opportunity to women Mary Kay Cosmetics
. To solve unsolved problems innovatively 3M
. To make people happy Walt Disney

2. Quantitative
. Become a $125 billion company by the year 2000. - Wal-Mart, 1990
. A computer on every desk and in every home; all running Microsoft software. - Microsoft, 1990s
. We will put a man on the moon and return him safely within the decade. - JFK, early 1960s

3. David-versus-Goliath
. Crush Adidas - Nike, 1960s
. Yamaha wo tsubusu! We will destroy Yamaha! - Honda, 1970s

4. Internal Transformations
. Become number one or two in every market we serve and revolutionize this company to have
the strengths of a big company combined with the leanness and agility of a small company. -
GE, 1980s
. Transform this company from a defense contractor into the best-diversified high-tech company
in the world. - Rockwell, 1995
. Become the company most known for changing the worldwide poor-quality image of Japanese
products. - Sony, 1950s
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Source: http://www.whyvisionmatters.com/seeing-through-a-foggy-future/ with
additions
The Flow

Key Sources
What is Vision
Applications
Methodology
Business Example

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 How to write a vision statement: 7 steps

1. When writing a vision statement, you first need to identify your organizations
purpose
Why is it important for this organization to exist? What would be lost if this organization
ceased to exist?
Ask Why is that important? Continue to ask why many times until you find the true
emotional connection
2. With purpose
Consider statement
the following inusing
questions hand, brainstorm
a mind your discussions:
map to document vision with a group to visualize
where you see yourself in the long-term. Be sure to agree your visions timeframe
up front.

What problem does your company exist to solve? What does your company hope to achieve?
Why does anyone care what we do?
Who is your target customer base, and what do you want to do for them?
What do you, your customers and other stakeholders value most about how your organization will
achieve its purpose? What are you most proud of?
What will the world look like in 2030?
What does our organization look like? How big is it? What are we famous for?
How do people feel about their jobs? How do I as the leader feel about the business?
Beyond money, why would anyone dedicate their precious time, energy and passion to this
project/organization?

3. Based on your question responses, ask the group what success will look like if you
accomplish those things?

4. Write the first draft consolidatating

Source: http://www.whyvisionmatters.com/seeing-through-a-foggy-future/ the brainstormed ideas
http://www.businessnewsdaily.com/3882-vision-statement.html
 How to write a vision statement: 7 steps

5. Test it for effectiveness: Does it paint your future picture of success?

3 tests of an effective vision statement

6. Solicit feedback
It is often helpful to put it aside for a few days prior to polish the final version
7. Share the vision with everyone who will be involved in implementing it
Communicate it a million times across the organisation as it helps to rally people
around a cause
Communicate the Vision in personal terms articulate in terms of what is in it for key
stakeholders

Source: http://www.inc.com/magazine/20110201/creating-a-company-vision.html
 Some tips
Dos Donts

Dream big, focus on success and possibility Be constrained by the past and remove perceived
constraints
Paint a graphic mental picture of the business you want
Define it in terms of competition which can change
Keep it simple and dont try to put too much into it; you
have other statements to complete the idea Talk about HOW things get done
Use present tense language as if we were already there Spend too much time on it
When describing goals, project five to 10 years in the Require knowledge about the customer to understand
future
Confused vision with a mission statement, goal, tactic or
Ensure it reflects core values and core purpose strategy
Focuses on what you want to create Focus on what you want to get rid of
Check if it could be relevant forever
Infuse your vision statement with passion and emotion
Make it bigger than the individual creates a desire for
teamwork
Get personal -be authentic and relevant for everyone
Think about how you will define progress towards your
vision?
Use your vision to govern strategy and tactics daily -
Think about what capabilities are required to deliver?
COMMUNICATE IT!

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The Flow

Key Sources
What is Vision
Applications
Methodology
Shell Example

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 2015 vision is to become the #1 IOC in XXXXX* Lubricants
20
market, 15
a New Shell Heartland and the preferred business partner
of customers
XX% market share, XXXX M Ltrs Volume,
GOALS
XXX M US$ C3, XX M US$ C5 by 2015

B2C B2C B2B Marine OEM

B2B
Best Sales & Marketing Team in

Indirect Direct Indirect 11 ML 8 ML

Direct
56 ML 8 ML 17ML Leverage Win

LSC capability/reliability
Accelerate Increase Distributor 60 ML B2B & factory fill
MCO IWS, FWS capability, Penetrate distributor from
CORE owner-driver penetration Price Mining, network Japanese
BUSINESS HDDEO competitivene Power and brands incl
growth ss Fleet, GPO
STRATEGY
XXXX

Direct Supply
XXXXX Partnership

On strategy RTM Resource (SP&A)

ENABLERS
SGBP & HSSE

Talent and competency

FOUN-
DATION Technology Leadership

* All confidential information removed Indonesia Lubricants CONFIDENTIAL Dec 2010 16

The Flow

What is Vision
Applications
Methodology
Business Example
Key Sources

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 Key Sources used

Demystifying the Development of an Organisational Vision Mark

Lipton, Director The Leadership Centre, Milano Graduate School of
Management
Built to Last: Successful Habits of Visionary Companies by James C.
Collins and Jerry I. Porras.
Summary of HBR article by Collins and Porras: http
://www.tecker.com/wp-content/uploads/2011/07/CollinsBuildingVisionSept96. pdf

Vision Framework workshop document by Jim Collins. Most relevant

to higher level organisational vision. http://www.jimcollins.com/tools/vision-
framework.pdf

Jack Straight from the Gut. Jack Welch

Full Steam Ahead!: Unleash the Power of Vision in Your Work and Your
Life. Ken Blanchard and Jesse Lyn Stoner
GBLP Training Material: Setting Strategic Direction J Stewart Black,
Professor, Insead
Video on YouTube:
Jack Welch: http://www.youtube.com/watch?v=LnMTMVqZL8o&&

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