2. TABLE OF CONTENT
MISSION
&VISION
1
2
3
4
5
6
7
8
1
2
3
4
5
6
7
8
VISION STATEMENT
MISSION STATEMENT
SOCIAL POLICY
DEVELOPING MISSION AND VISSION STATEMENT
IMPORTANCE OF MISSION STATEMENT
REASON FOR MISSION STATEMENT
ELEMENTS OF MISSION STATEMENT
BENEFITS OF HAVING CLEAR MISSION & VISION
7
8
3. VISION STATEMENT
• A vision statement should
answer the basic question,
“What do we want to
become?”
• A clear vision provides the
foundation for developing a
comprehensive mission
statement.
• It should create:
• Creates commonality of
interests
• Reduce daily monotony
• Provides opportunity &
challenge
5. MISSION STATEMENT
• WHAT IS OUR BUSINESS?
• A mission is an enduring
statement of purpose that
distinguishes one
organization from other
similar enterprises
• The mission statement is a
declaration of an
organization’s “reason for
being.”
• a mission statement reveals
what an organization wants
to be and whom it wants to
serve.
7. SOCIAL POLICY
&MISSION
• Social policy should be
integrated in all strategic-
management activities
• Mission should convey the
social responsibility of the
firm
8. THE PROCESS OF DEVELOPING MISSION
AND VISSION STATEMENT
A widely used approach to developing a mission statement is to:
• Select several articles about mission statements and ask all
managers to read these as background information.
• Ask managers to prepare a mission statement for the
organization.
• A facilitator, or committee of top managers, should then merge
these statements into a single document and distribute this draft
to all managers.
• Process should create emotional bond and a sense of mission
between employees and organization
9. Importance of written mission statement
Mission
Resource Allocation
Unanimity of Purpose
Organizational Climate
Focal point for work
structure
10. REASON FOR
MISSION
STATEMENT(WELL
DOCUMENTED)
the firms with a formalized mission
statement have:
• 2x average return on shareholder’s
equity
• Positive relationship to company
performance
• 30% higher return on certain
financial measures
I.
WHAT DO WE WANT TO BECOME?
It is especially important for managers and executives in any organization to agree on the
basic vision that the firm strives to achieve
in the long term.
A.
Importance of a Vision Statement
1.
A vision statement should answer the basic question, “What do we want to become?”
A clear vision provides the foundation for developing a comprehensive mission
statement.
2.
Many organizations
have both a vision and a mission statement, but the vision
statement should be established first and foremost.
a
.
The vision statement should be short, preferably one sentence, and as many
managers as possible should have input into developing the statement
.
II.
WHAT IS OUR BUSINESS?
A
.
Mission Statements
1
.
Peter
Drucker says
that
asking the question, “What is our business?” is synonymous
with asking the question, “What is our mission?”
2
.
A mis
sion is an
enduring statement of purpose that distinguishes one organization
from other similar enterprises
. Th
e mission statement is a declaration of an
organization’s “reason for being.”
3
.
Sometimes called a creed statement, a statement of purpose, a sta
tement of
philosophy, a statement of beliefs, a statement of business principles, or a statement
“defining our business,” a mission statement reveals what an organization wants to be
and whom it wants to serve.
As indicated in the strategic-management model, a clear mission statement is needed before alternative strategies can be formulated and implemented.
It is important to involve as many managers as possible in the process of developing a mission statement, because through involvement, people become committed to an
organization.
A widely used approach to developing a mission statement is to:
Select several articles about mission statements and ask all managers to read these as background information.
Ask managers to prepare a mission statement for the organization.
A facilitator, or committee of top managers, should then merge these statements into a single document and distribute this draft to all managers.
A request for modifications, additions, and deletions is needed next along with a meeting to revise the document.
To ensure unanimity of purpose within the organization
To provide a basis, or standard, for allocating organizational resources
To establish a general tone or organizational climate
To serve as a focal point for individuals to identify with the organization’s purpose and direction, and to deter those who cannot from participating further in the organization’s activities
To facilitate the translation of objectives into a work structure involving the assignment of tasks to responsible elements within the organization
To specify organizational purposes and the translation of these purposes into objectives in such a way that cost, time, and performance parameters can be assessed and controlled
Rarick and Vitton found that firms with a formalized mission stat
ement have twice the
average return on shareholders’ equity than those firms without a formalized mission
statement. Bart and Baetz found a positive relationship between mission statements and
organizational performance. Business Week reports that firms us
ing mission statement
s
have a 30 percent higher return on financial measures than those without such statements.
Customers: Who are the firm’s customers?
Products or services: What are the firm’s major products or services
Markets: Geographically, where does the firm compete?
Technology: Is the firm technologically current?
Concern for survival, growth, and profitability: Is the firm committed to growth and financial soundness?
Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
Self-concept: What is the firm’s distinctive competence or major competitive advantage?
Concern for public image: Is the firm responsive to social, community, and environmental concerns?
Concern for employees: Are employees a valuable asset of the firm?
Achieve clarity of purpose among all managers and employees.
Provide a basis for all other strategic planning activities, including internal and external assessment, establishing objectives, developing strategies, choosing among alternative strategies, devising policies, establishing organizational structure, allocating resources , and evaluating performance.
Provide direction.-------The mission statement provides the direction that is to be followed by the organization while the vision statement provides the goal (or the destination) to be reached by following the direction. It helps to properly align the resources of an organization towards achieving a successful future
Provide a focal point for all stakeholders of the firm. -------The vision and mission statements provide a focal point that helps to align everyone with the organization, thus ensuring that everyone is working towards a single purpose. This helps to increase efficiency and productivity in the organization
Resolve divergent views among managers. -----To drive your initiatives through without argument, avoid silos, power-mongering, and office politics, while increasing morale, productivity and continued success, you NEED a powerful MEVPIV. (Mission, Ethos, Vision, Purpose, Identity and Values) statements...
Promote a sense of shared expectations among all managers and employees. ------What is a shared expectations?
Definition & Citations: The understanding that is common to both customer and supplier or between employees and management about each others possible concerns
8. Achieve higher organizational performance. -------A good mission statement creates an environment that encourages everyone to produce high-quality work and hold high standards for themselves. Employees can engage with a company's core values by reading its mission statement and applying those ideas to their work
9.Achieve synergy among all managers and employees.----meaning of synergy: the interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects
