developing strategic vision and mission statement session 2 01 october 2011 civil service college...
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Developing Strategic Developing Strategic Vision and Mission Vision and Mission StatementStatement
Session 201 October 2011Civil Service College Dhaka
Presentation by
Dr. Muhammad G. SarwarEmail: [email protected]: 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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