Building your company vision

Dr. Rajesh Tripathi

 Building your company vision

•Vision without Execution

is Hallucination
–- Thomas Edison
 Building your company vision
contd..
• Two components of vision: core ideology- what
we stand for and why we exist and envisioned
future- what we aspire to become.
• Core ideology- It defines the enduring character
of the organisation. Visionary provide core
ideology.
• It is a source of guidance and inspiration. It is a
glue which holds the organisation.
• It consists of 2 parts- core values and core
purpose.
 Building your company vision
• Core values- They are the essential and
enduring tenets of the organisation, doesn’t
require external justification but have intrinsic
value. E.g. P&G, Generally companies have 3
to 5 CV. They will change seldom, if ever.
• Core purpose- It is oragnisation reason of
existence. Purpose does not change but it
inspire change.
 Building your company vision
• Method of getting at purpose is five whys or
probe deeper. E.g. market research company.
• None of the core purpose falls into the
category of wealth maximisation.
• Discovering core ideology- You do not create
or set core ideology but you discover it by
looking inside. It is not an intellectual exercise.
It has to be authentic you cannot fake it.
 Building your company vision
• Role of core ideology is to guide and inspire
not to differentiate.
• You can’t force people to share your ideology ,
those who share will stay and others will move
away. You can still have diversity of people.
• Words can change to describe core ideology
but not CI itself.
• Envisioned future- It is the second component
of vision framework.
 Building your company vision
• It consists of 2 parts- BHAG & Vivid description
• BHAG- Big hairy audacious goals, concept of
strategic intent.
• Vivid description- It constitute Passion,
emotion, and conviction-- Ford, Merck
• Passion, emotion and conviction are essential
parts of VD. Churchill, Movie 300, Enemy at
the gates.
• Core purpose≠ BHAG
 Building your company vision
• E.g. Vikram Sarabhai and Indian space
research.
• It is not audacity of goals but the level of
commitment of goals that counts.
• Success lies in building the strength of
organisation and its people.
• Replace the BHAG before on the verge of
achieving.
• Preserve the core and stimulate progress.
 Building your company vision
• Building a visionary company requires 1%
vision and 99% alignment
 Sony : vision
• Core Ideology
– Core Values
– Elevation of the Japanese culture and national
status
– Being a pioneer—not following others;
– doing the impossible
– Encouraging individual ability and
– creativity
 Sony : vision
contd..
• Purpose
– To experience the sheer joy of innovation
– The application of technology for the benefit and
pleasure of the general public.
 Sony : vision
contd.
• Envisioned Future
– BHAG
• Become the company most known for changing the
worldwide poor-quality
• image of Japanese products
 Sony : vision
contd.
• Vivid Description
• We will create products that become pervasive around
the world.... We will be the first Japanese company to
go into the U.S. market and distribute directly....
• We will succeed with innovations that U.S. companies
have failed at—such as the transistor radio.... Fifty
years from now, our brand name will be as well known
as any in the world...and will signify innovation and
quality that rival the most innovative companies
anywhere.... “Made in Japan” will mean something
fine, not something shoddy.
 Vision
• The basic dynamic of visionary companies is to
preserve the core and stimulate progress.

• It is vision that provides the context.

 Definition of Vision
• Vision : it is a description of something in
future (Kotter)
• It is mental perception of the kind of an
environment an individual , organisation
aspires to create in a time horizon (El-Namaki)
• Category of forward looking intentions (Miller
and Dess)
 Benefits
• Inspiring
• Common identity facilitator
• Competitive
• Risk Promoter
 Mission
• Mission : is a purpose or a reason for the
organizations' existence Mission answers :
• What is our business,
• What it will be
• What it should be
 Characteristics of Mission
• Feasible
• Precise
• Clear
• Motivating
• Distinctive
• Reflective of strategy and goal
 Mission Formulation
• According to Lynch (2003)
– Identify the nature of the business
– Response of the customer
– Value and beliefs
– Emphasize team effort, cherished values and mutual
respects
– Sustainable competitive advantage
– Distinctive core competencies
– Analysis of environment and impact of vision
statement
 Mission formulation
contd..
• Lay down business ethics
• Specific product/services
• Technological competences
• Top-down commitment
 Comparison of Vision and Mission

• Indian Oil Corporation

– Vision: A major diversified transnational energy
company with national leadership…………. Playing
important role in oil security
– Mission:
• To achieve international standards
• maximize wealth
• Attain leadership
• Participative culture
 Objective and Goal
• Objective: It is an end -which organization
intends to reach . It is generally specific and
quantified
• Goal: It denotes what an organization hopes
to achieve . It could be qualitative as well as
quantitative both
 Characteristics of Objective
• Understandable
• Precise
• Controllable and Measurable
• Challenging
• Correlative
• Constraints incorporator
 Issues in Objective Setting
• Specificity
• Periodicity
• Verifiability
• Reality
• Quality
 Forces that impacts Objectives
• Environment forces
• Realities of resources and internal power
relationship
• Value system of top management
• Awareness by management
 Types of Objectives
• Strategic Objective
• Tactical Objective
• Operational Objective
• Individual Target