developing strategic vision and mission statement

Developing Strategic Developing Strategic Vision and Mission Vision and Mission StatementStatement

Session 201 October 2011Civil Service College Dhaka

Presentation by

Dr. Muhammad G. SarwarEmail: sarwar_mg@yahoo.comCell: 01821443741

Presentation Contents of 1st Presentation Contents of 1st SessionSessionStrategic Management: course outlineStrategic Management: referencesWhat is Strategic Management?Stages of Strategic ManagementStrategic Management ModelBenefits of Strategic ManagementWhy Strategic Planning/Management

may fail?Strategic Management and Business

Ethics Guidelines for Effective Strategic

Management

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Presentation Contents of 2nd Presentation Contents of 2nd SessionSessionSelective review of topics

discussed in last sessionStrategy Making HierarchyDeveloping Organization's Vision

StatementPreparing Organization’s Mission

StatementLinking Vision / Mission with

Organization vales

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Strategic Management: course Strategic Management: course outlineoutlineSl. No.

Topic Title Session no.

1 Strategic Management: an overview 1

2 Strategy Formulation Designing Vision and Mission Statements 1• External Assessment 1

• Internal Assessment 1

• Setting Company/Organization Objectives

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• Strategy Analysis and Choice 1

4 Strategy Implementation 1

4 Strategy Evaluation 1

5 Limitations of Strategic Management: why strategy may fail ?

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Strategic Management: Strategic Management: referencesreferencesFred R. David (2008), Strategic

Management: Concepts and Cases, 11th Edition, Prentice Hall

Arthur A. Thompson, Jr. (2010) Crafting and Executing Strategy: the quest for comparative, 16th Edition, McGraw Hill

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What is Strategic What is Strategic Management?Management?Strategic Management is an art and

science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives (Fred R. David, 2008).

Strategic Management is the approaches to grow, attract and please clients, compete successfully and achieve targeted levels of organizational performance (Arther A. Thompson, 2010)

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What is Strategic What is Strategic Management? (contd.)Management? (contd.)In ultimate analysis Strategic

Management is the Quest for Competitive Advantage.

4 most frequently used strategic approaches:◦Striving to be the industry’s low-cost

provider◦Outperforming rivals based on quality,

diversity, style, technology, value –added services etc

◦Focusing on a narrow market niche◦Developing capability that rivals can’t

easily imitate.7

Stages of Strategic Management

Strategic Management process consists of 3 stages:

1.Strategy formulation,2.Strategy implementation, and3.Strategy evaluation.

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Strategic Management ModelStrategic Management Model

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Strategy Making HierarchyStrategy Making Hierarchy

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Corporate Governance: role of Corporate Governance: role of Board of Directors in Strategic Board of Directors in Strategic ManagementManagementCritically appraise and approve

organization’s strategic management

Evaluate the strategic leadership skills of the CEO and other managers

Institute a compensation plan for top executives

Ensure that organization issues accurate financial report

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Strategy formulationStrategy formulationStrategy formulation includes 6 stages:Developing a vision and mission

statementsIdentifying organization’s external

opportunities and threatsIndentifying internal strengths and

weaknessesEstablishing long-term objectivesGenerating alternative strategiesChoosing particular strategies.

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Developing a Strategic Developing a Strategic Vision for the OrganizationVision for the Organization

A Strategic Vision describes the route a organization intends to take in developing and strengthening its products / services. It lays out the organization’s strategic course in preparing for the future.

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Developing a Strategic Developing a Strategic Vision for the Organization Vision for the Organization (contd.)(contd.)As a managerial tool Strategic

Vision must:A. Provide understanding of what

management wants its organization to look like, and

B. Provide managers with a reference point in making strategic decisions and preparing the organization for the future.

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Characteristics of an Characteristics of an Effective Effective StrategicStrategic Vision Vision Graphic: paint a picture reflecting

organization's visionDirectional: forward looking strategic courseFocused: specific enough to provide

guidanceFlexible: is not a once and for all time

statementFeasible: within the resource availabilityDesirable: serve the long term interest of

shareholders / stakeholdersEasy to Communicate: a simple and

memorable slogan, that can be explained in 5-10 minutes.

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Common Flaws in Vision Common Flaws in Vision StatementsStatementsVague / incomplete: is short on

specifics about future of the organization

Non-directional: does not indicate strategic focus

Too broad: all inclusive without any specific direction

Uninspiring: lacks the power to motivate employees and shareholders

Lofty accolades: too reliant on superlatives without anything specific

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Communicating the Strategic Communicating the Strategic VisionVision

An effectively communicated vision is a valuable management tool for enlisting the commitment of organization personnel to action that get the organization moving in the intended direction.

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Communicating the Strategic Communicating the Strategic Vision (contd.)Vision (contd.)Expressing the essence of the

Vision in a Slogan like Henry Ford’s vision ‘a car in every garage’

Breaking down resistance to a new strategic vision

Recognizing strategic inflection points

Understanding the payoffs of a clear vision statement

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Examples of Visions in Examples of Visions in SlogansSlogansFord: ‘a car in every garage’Nike: ‘To bring innovation and inspiration

to every athlete in the world’Levy: ‘We will clothe the world by

making the most appealing and widely worn casual clothing in the world’

Mayo Clinic: ‘The best care to every patient every day’

Greenpeace: ‘To halt environmental abuse and promote environmental solutions’

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Payoffs of a Clear Vision Payoffs of a Clear Vision StatementStatementIt crystallizes senior executives’ views

about organization's long term directionIt reduces the risk of rudderless decision

makingIt helps winning the support of

employees for organizational reformsIt helps lower level managers to prepare

their departmental /operational objectives and strategies

It helps an organization to prepare for the future.

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Vision vs. Mission Vision vs. Mission StatementStatementStrategic vision is what it says about the

organization’s future strategic course; Mission Statement of a organization

typically provide a brief overview of the organization’s present product / service provision and sometimes geographic coverage or standing as a market leader.

Mission statement is needed before alternative strategies can be formulated and implemented.

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Process of Developing a Process of Developing a Mission StatementMission StatementInvolve as many managers as

possible in the process of developing a organization’s mission statement, because through involvement managers of all level become committed to the organization.

Process of developing a mission statement should create an ‘emotional bond’ and ‘sense of mission’ between the organization and employees.

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Characteristics of a Mission Characteristics of a Mission StatementStatement

A declaration of organization’s attitude and outlook

A customer / client / stakeholder orientation

Declaration of Social Policy / Responsibility

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Mission Statement Mission Statement ComponentsComponentsConcern for Customers / clients /

stakeholdersProducts / ServicesMarket / locationCutting edge TechnologySelf-concept / competitive advantageConcern for GrowthOrganization’s Philosophy / valueConcern for public imageConcern for employees

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Rationale for Mission Rationale for Mission Statements Statements To ensure unanimity of purpose within

organizationTo provide a basis for resource allocation To promote organizational environmentTo serve as focal point to identify with

the organization’s purpose and direction To specify organization’s purpose and

translate these purposes into objectivesTo facilitate the translation

organization’s objectives into a work structure

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Vision and Mission Statement Vision and Mission Statement ExampleExampleCivil Service College DhakaVision StatementThe vision of the college is to become a centre of

excellence in teaching and research on policy options regarding governance and development to establish an effective transparent and accountable public service in Bangladesh

Mission StatementThe mission of the college is capacity

development of public and private sector executives through strengthening their knowledge, skill and competence and by enhancing their commitment, motivation and dedication to the interest of the country and its people.

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ThanksThanks

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