DM 214 Strategic Planning Module 11. Formulating and Adopting strategies

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Develop the
DM 214 Strategic Planning
1st Semester 2013
Module 11
Formulating and Adopting Strategies

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Reported by:
Brenda G. Paderes
Ronald O. Acosta

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…Definitions
Vision
- a guiding concept of what the
organization is trying to
achieve, where it wants to be
in the future.
- is seeing a future state with
the mind’s eye.
- is applied imagination.

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…Definitions (cont…)
Vision
- it sees opportunity
inside the challenge.
- it represents desires,
dreams, hopes, goals
& plans for the future.
- it’s like a blueprint of a
house before it is built.

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Developing a Strategic Vision
 Involves thinking strategically about
 Firm’s future business plans
 Where to “go”
 Tasks include
 Creating a roadmap of the future
 Deciding future business
position to stake out
 Providing long-term direction
 Giving firm a strong identity

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Characteristics of a Strategic Vision
 Charts a company’s future
strategic course
 Defines the business makeup
for 5 years (or more)
 Specifies future technology-
product-customer focus
 Indicates capabilities to be
developed
 Requires managers to
exercise foresight

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Entrepreneurial Challenges in
Forming a Strategic Vision
 How to creatively prepare a company
for the future
 How to keep the company responsive
to
 Evolving customer needs
 Competitive pressures
 New technologies
 New market opportunities
 Growing or shrinking
opportunities

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…Definitions
Mission
- is a statement of purpose to
reach your vision.
 a statement of the purpose of
a company or organization
 guide the actions of the
organization, spell out its overall
goal, provide a path, and guide
decision-making
 organization's purpose, its raison
d'etre or reason for existing

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…Definitions
Mission
- A company's mission is its reason
for being. The mission often is
expressed in the form of a mission
statement, which conveys a sense
of purpose to employees and
projects a company image to
customers. In the strategy
formulation process, the mission
statement sets the mood of where
the company should go.

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Characteristics of a Mission Statement
 Defines current business activities
 Highlights boundaries of current business
 Conveys
 Who we are,
 What we do, and
 Where we are now
 Company specific, not generic —
so as to give a company its own identity
A company’s mission is not to make a profit !
The real mission is always—“What will we do
to make a profit?”

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Defining a Company’s Business
 A good business definition
incorporates three factors
 Customer needs -- What is
being satisfied
 Customer groups -- Who is
being satisfied
 Technologies and competencies
employed -- How value is
delivered to customers to satisfy
their needs

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Your VISION — MISSION Statement
Should include the best of both

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Communicating the Vision—Mission
 An exciting, inspirational vision
 Challenges and motivates workforce
 Arouses strong sense of organizational
purpose
 Induces employee buy-in
 Galvanizes people to live the business

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Strategic Visions vs. Missions
 A strategic vision
concerns a firm’s future
business path --
“where we are going”
 Markets to be pursued
 Future technology-
product-customer
focus
 Kind of company that
management is
trying to create
 A mission statement
focuses on current
business activities --
“who we are and
what we do”
 Current product and
service offerings
 Customer needs
being served
 Technological and
business capabilities

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Ref: http://www.worksystems.com/services/strategic_planning.html
Translating the vision & mission Into
Strategic Direction

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Managerial Value of a Well-Conceived
Strategic Vision and Mission
 Crystallizes long-term direction
 Reduces risk of rudderless
decision-making
 Conveys organizational
purpose and identity
 Keeps direction-related actions of
lower-level managers on common path
 Helps organization prepare for the
future

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of an Electric Cooperative
Examples of
Vision/Mission

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Our Vision and Mission Statements
Vision
 We envision of becoming the outstanding
electric cooperative (in the Philippines)
with the most reliable and competitive
power rate using the modern technology
in providing excellent service.
Mission
 To deliver quality service and affordable
power rate for the satisfaction and
delight of member-consumers.
Pangasinan III Electric
Cooperative

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Vision
 A competitive and financially viable
electric distribution utility in an
environment of open access and retail
competition.
Mission
 Effective, reliable service through unity,
cooperation and commitment.
Central Pangasinan Electric
Cooperative
Examples: Vision and Mission Statements

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Vision
 “BENECO shall be a model electric
cooperative, delivering quality service in
order to sustain a progressive and
ecologically sound
community.”
Mission
 “We commit to extend our lines and services
to all areas of Baguio City and Benguet
Province. We continuously engage in the
development of our resources in consonance
with and in adherence to standards.”
Benguet Electric Cooperative, Inc.

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Vision
 To become a globally competitive
electric distribution utility providing the
best quality service to its progressive
communities and satisfied consumers.
Mission
 To electrify all households within its
coverage area and continually adopt
innovative ideas that will ensure a
reliable, affordable and efficient
electric service to all its consumers.
Nueva Ecija 2 Electric Cooperative, Inc.

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Vision
 To be recognized as a leading, caring and committed
electric cooperative.
Mission
 To be a provider of quality and dependable supply of
electricity at a reasonable cost;
 To be a leading partner of our government in improving the
quality of life of our member-consumers, in promoting
progress; and in sustaining development; and
 To be the steward of welfare of our member-consumers by
providing them mindful, accurate and prompt service.

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Vision
 “A responsible leader in utility
service“
Mission
 "Committed to provide our
customers with reliable, efficient
and responsive electric service at
reasonable cost“.
La Union Electric Company

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Vision
 A dynamic light distributor and
service delight for life.
Mission
 To uplift the status and quality
of life by providing Efficient,
reliable, safe and affordable
power for member-consumer ‘s
satisfaction.
Zambales II Electric Cooperative, Inc.

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Vision
 An electric cooperative with highly-
professionalized services for
customer delight.
Mission
 To deliver quality electric service
for the cooperative's area coverage
up to the last sitio as well as the
delight of its customer and
manpower.
Bohol Electric Cooperative, Inc.

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.
Ilocos Norte Electric Cooperative
VISION
 “To be the preferred distribution
utility in an open-access
environment. “
MISSION
 “ We are committed to our member-
consumers to provide safe, reliable
and efficient electric service at a
reasonable cost through dedicated
officers and employees. "

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Pangasinan III Electric Cooperative
 We envision of becoming the
outstanding electric cooperative
(in the Philippines) with the most
reliable and competitive power
rate using the modern
technology in providing
excellent service.
 To deliver quality service
and affordable power rate
for the satisfaction and
delight of member-
consumers.

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Vision and why it matters?
 guiding concept of what
the organization is trying to
achieve
 seeing a future state
 opportunity inside a challenge
 desires, dreams, hopes, goals
for the future
 long term direction
 strong identity

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Organizational Core
Values of PANELCO III
 Honesty
 Unity
 Thrift
 Commitment

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Value Formation Core Team
 VFCT was created by PANELCO III purposely to:
1. assist management in the resolution of critical
issues and concerns of its operation;
2. serve as role models in the practice of
cooperative values;
3. monitor effectiveness of the prescribed core
values and innovate strategies/approaches;
and
4. conduct bench marking activities relative to
core values enhances enhancement from other
successful organization

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