Module 2 Developing Vision, mission and values
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The document outlines the importance and characteristics of vision and mission statements in organizational strategy, emphasizing their roles in defining purpose and direction. It discusses how these statements should be crafted collaboratively, contain specific components, and reflect the company's values and goals. Additionally, it highlights the benefits of having well-defined mission and vision statements, including improved performance and resource allocation.
Module 2 Developing Vision, mission and values
- 1. The Business Vision, Mission, and Values (Concepts and Cases) Lecturer Team of Business Psychology
- 2. Agenda •Importance of Vision and Mission Statements •What Do We Want to Become? •What Is Our Business? •Characteristics of a Mission Statement •Components of a Mission Statement •Writing & Evaluating Mission Statements
- 3. A Comprehensive Strategic Management Concept Ch 2 -3 Copyright © 2011 Pearson Education
- 6. Vision statement: • To be the leading provider of Premier Japanese Casual Food with organization to inspire people to do their best. • Which business do you think this might be from?
- 8. Vision Statement ❖What is the definition of vision ? ❖Where can you find the vision statement of any organization? ❖ Examples of vision statements . ❖Why the vision is important?
- 9. Vision is defined as the main target/goal that any organization strive to achieve in the long term Vision statement characteristics :- • It should answer the question what do we want to become? • It provides the foundation for developing a comprehensive mission • It should be established first and foremost the mission • It should be short (one sentence if possible ). • Participation from many managers is important in developing the mission statement • However , most of the Arab companies stated visions statement , most of them are not well articulated (results of researches )
- 10. Where can you find the vision statement of any organization ? • Since the vision of any organization must be explicit ,it is easy to find it on the website of the organization in section called (about us – our profile )
- 11. Vision Statements examples • Our vision is to become the largest food and beverage business in Indonesia and Southeast Asia, with affordable quality products, fast and friendly service, quality control, and creative business development. • To become the number one national fast food restaurant in Indonesia.
- 12. Vision Statements Benefit Agreement on the basic vision is critically important to the firm’s success. Because the shared established of vision :- • Creates commonality of interests • Reduces daily Routine
- 13. Characteristics of a great vision statement Ch 2 -13 • Specific – your goals need to be clear and specific. Specificity lets you focus on your objectives with greater precision. • Measurable – you should be able to track the progress of your goals. When you can assess the progress you’re making, it helps you stay focused, reach deadlines, and gain a sense of achievement upon completing them. • Attainable – Ideally, your goals should stretch your skills but still be achievable. In other words, are they realistic? • Relevant – Do the goals you’ve created align with the needs of your team and the company as a whole? If not, you might need to go back to the drawing board and come up with something different. • Time-bound – With a deadline to focus on, there’s less chance of everyday tasks taking priority over the longer-term goals your team has agreed on.
- 14. Vision Statement Writing Tips • Collaborate - The vision statement should reflect the character of your entire company, and there's no better way to accomplish this than to write the statement alongside key members of your team. • Write first, edit later - Don't try to write a succinct, well- crafted vision statement right out of the gate. Put everything you think of down on paper, no matter how small. • Avoid buzzwords and jargon - Plain language is always more powerful than jargon • Avoid ambiguity - Vision statements don't have to be concrete the way a mission statement should be, but you want to avoid using words that could potentially be interpreted in a way that changes the entire vision statement's meaning.
- 15. 7 steps to write your company's vision statement • Identify important stakeholders • Start with a list of keywords • Answer foundational company questions (e.g: organization’s main purpose, main strength, make a difference, and so on) • Sort your answers by importance • Write your company's vision out long-form • Step back and evaluate • Write your final vision statement
- 17. Mission statement: • Our mission is to spread our passion for high quality coffee from Indonesia to the rest of Asia. • Which business do you think this might be from?
- 19. A mission statement is a short way for a business to express their main intent • Creating a trustworthy organization that is beneficial for Stakeholders. • To deliver customer satisfaction by providing comfortable outlet network, quality products and friendly services. • To promote a positive working environment for employees to grow and thrive. • To constantly develop a complete product range to fulfill all customer needs • To provide easy access to global market through widespread distribution network • To deliver quality services to attain excellent customer experience
- 20. Mission Statements A mission statement sets out the purpose and primary objectives of a business in the present. A mission statement should be memorable A mission statement should be inspiring A corporate vision looks towards the future and where the business would like to be • Carrying out business in the field of food processing, namely the further processed chocolate industry (further chocolate process) and empowering human resources to achieve prosperity and independence.
- 21. Mission Statements • What is the definition of mission? • Where can you find the mission of any organization? • Mission examples. • Why mission is important?
- 22. A mission statement is defined as a brief description of a company's fundamental purpose. It answers the question, "Why do we exist?" Mission statement characteristics : • It answers the question, “ what is our business ? • Declares the firm’s reason for being "Why do we exist?“ • It distinguishes one firm from another • It articulates the company's purpose both for those in the organization and for the public. • 90% of all companies have used a mission statement in the previous five years.
- 23. Mission Statements Mission statements can also be referred to as: • Creed statement • Statement of purpose • Statement of philosophy • Statement of business principles • It could be founded on the website of the organization in section called (about us/ our profile )
- 24. Mission Statement Examples • We make top - notch quality and sevice as high priority in providing integrity food to customers We strive to make better ways in creating value for stakeholder through innovation and technology We commit to our people by providing an opportunity to grow and excel • Provides all hotel fabric necessities, from bath to bed linens with the integrated manufacturer and uncompromising premium quality while maintaining a competitive price for our customers.
- 25. Benefits from a strong mission Mission Resource Allocation Unanimity of Purpose Organizational Climate Focal Point for Work Structure
- 26. Mission & vision differences Mission Vision Focus What is our business ? what do we want to become? ? the main Q Less broad Broader Scope Longer Must be short (one sentence if possible ) Long The foundation of objectives , plans , strategy ,and policies. It is the foundation of the mission Role
- 27. Mission development as a process For the mission to be developed a wide approach must be undertaken:- 1) Reading articles (as background)by managers 2) Preparation of mission statements 3) A facilitator should integrate these statements into a single documents 4) Distributing the draft mission to all managers 5) Modifications, additions, changes are requested (evaluation) Note Organizations can manage this process internally (by discussion group) , or externally by consultant or external facilitator
- 28. The Effective Missions requirements • Broad in scope • Generate strategic alternatives • Reconciles interests among diverse stakeholders • Reflects a balance between specifications &generalizations • Arouse positive feelings and emotions • Motivate employees to action • Generate favorable impression of the firm • Reflect future growth • Provide criteria for strategy selection • Dynamic in nature
- 29. Importance (Benefits) of Vision &Mission statements According the research results, many benefits can be achieved through the formalized mission:- • 2x average return on shareholders’ equity • Positive relationship to company performance • 30% higher return on certain financial measures Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -29
- 30. Why Must Organizations Carefully Develop A Written Mission Statement? To keep the following benefits:- ➢ To ensure unanimity of purpose within the organization ➢ To provide a basis or standard for maximizing the resources allocation ➢ To establish a general tone or organizational climate ➢ To facilitate putting the objectives and policies into actions ➢ To maximizing the efficiency of resource allocation process
- 31. Characteristics of a Mission • First :A declaration of attitude • Second :A customer orientation • Third: A declaration of social Policy
- 32. A mission statement is a declaration of attitude • It must be broad in scope not only a statement of specific details • It should not be too lengthy, the recommended length is less than 250 words • It must arouse positive feelings and emotion • It must generate a good impression that the firm is successful, has direction, and is worthy of time • It must imply the growth directions in the future • It must serve as a framework for evaluating both current and prospective activities.
- 33. A mission must be a customer orientation through what Vern McGinnis mentioned • Define what the organization is. • Define what it aspires to be. • Broad enough to allow for growth • Distinguishes firm from all others • Stated clearly – understood by all
- 34. To Be Effective Customer Orientation Mission • Anticipates customer needs • Identifies the utility of a firm’s products or service to the customer (not the clothes- but the attractive look) (not shoes – but the comfort) (not the book –but knowledge ) (not the milk but health care ----etc.) • Provides product/service to satisfy needs
- 35. Mission is a declarative of social policy • The term Social policy embraces managerial philosophy and thinking at the highest levels of an organization • Social policy affects the development of a business mission statement • Mission statement conveys the social responsibility of the firm to consumers ,environmentalists ,minorities ,communities…..etc
- 36. Community Social Responsible • J.CO Safari is a form of J.CO's concern for its community. This program is packaged in the form of an informal education program, namely learning to process donut and coffee products involving the J.CO community and J.CO trainers directly at the nearest J.CO outlet. • Hokben, Educational Support Program for high achieving children around the Head Office and HokBen Factory located in Ciracas has been presented rountinely for the 16th time by CSR HokBen. In the Environmental Scholarship program, HokBen provides scholarship to 60 outstanding students as a proof of love and cares for the education in Indonesia, especially for the neighborhood around the HokBen Factory. • Kenangan PinTer (Smart and Skillful), (A pillar for all programs that aim to increase the intelligence and skills of people who do not yet have access to adequate education). This pillar is realized through the Memories of Learning Coffee program, a free basic coffee training platform for people in Jakarta, Surabaya and Medan
- 37. Mission Statement Components Mission statements can and do vary in length, content, format,….but it include the most essential components from the following 1. Customer, who are the firm’s customers? 2. Products & services, what are the firm’s main products? 3. Markets, where does the firm compete? 4. Technology, Is the firm technological current? 5. Concern for survival, growth, and profitability Is the firm committed to growth and financial, soundness?
- 38. Mission Statement Components 6-Philosophy, what are the basic beliefs, values, and ethical prosperities of the firm? 7-Self- concept, what is the firm major competitive advantage? 8-Concern for public image, is the firm responsive to social, community, and environmental concerns? 9-Concern for employees, are employees a valuable asset of the firm?
- 39. Ch 2 - 39 Mission Components Customers Markets Employees Public Image Self- Concept Philosophy Survival, Growth, Profits Products or Services Technology Copyright © 2011 Pearson Education
- 40. Writing & Evaluating Mission Statement • There is no one best mission statement for a particular organization • Good judgment is required in evaluating the mission statement • Not all companies cover all the nine components in their mission statement. • The nine basic components serve as a practical framework for evaluating and writing a mission statement • The more components are present in the mission statement, the stronger statement it could be • Evaluation of a mission statement according to the presence of the nine components is just the beginning of the process to assess a statement’s overall
- 41. Mission Statement Evaluation Matrix Component 1 Component 2 Component 3 Component 4 Component 5 Compo nent 6 Compone nt 7 Component 8 Component 9 Customers Products or Services Markets Technology Concern for Survival, Growth, Profitability philos ophy Self- Concept Concern for Public Image Concern for Employees Total out of 9 Organiz ation JCO CFC
- 42. Ch 2 - 42 Copyright © 2011 Pearson Education
- 44. Define your Values • These are the principles and beliefs that drive your work and define your culture. Your Values should reflect your passion, your purpose, and your priorities. • They should also be aligned with the needs and expectations of your Stakeholder. • To define your values, you can use brainstorming, surveys, focus groups, or other methods to gather input from your stakeholders. Then, you can narrow down your list to the most essential and distinctive values that represent your organization.
- 45. Values • The ‘VALUES’ define what the organization stands for — they are the organization’s core rules • They provide bounds or limits of how the employees will conduct their activities while carrying out the vision and mission. • They are statements about how the organization will value customers, suppliers, and the internal community. • Once defined, the values that are important to the organization should be reflected in everything done by the employees
- 46. Values (contd.) • Articulating values provides everyone with guiding lights, ways of choosing among competing priorities and guidelines about how people will work together. • A values statement reflects the core ideology of an organization, the deeply held values that do not change over time. • Values are what the organization lives, breathes and reflects in all its activities.
- 47. Values examples iCLEAN • Integrity, • Convenience, • Loyalty, • Excellence, • Affability, • Next Level • Customer centric • Driving for result • collaboration, • Agility, • Flexibility, • Constant improvement • Be exceptional and trustworthy. • Share knowledge and expertise. • Contribute to society. • Foster robust interchange. • Perpetuate valuable learning. • Elevate every experience. I M ELITE Innovative – Accountable – Mastery – Excellence – Leadership – Integrity - Enthusiasm
- 48. To Define Your Organization Values • 1. Identify the times when organization were happiest • 2. Identify the times when organizations were most proud • 3. Identify the times when organization were most fulfilled and satisfied • 4. Determine your organization’s top values, based on your experiences of happiness, pride, and fulfillment • 5. Prioritize your organization’s top values • 6. Reaffirm your organization’s values
- 52. Goal and Strategy (next journey) • Mission and Vision Statements along with Values set the general goals and direction for the organization. They help stakeholders, customers, and employees understand what the organization is about and what it intends to achieve • These statements are far too vague to guide day-to-day actions and resource allocation decisions • Mission and Vision Statements are made operational when they define goal and strategy for how the mission and vision will be achieved
- 53. Learning and Giving for Better Indonesia Lecturer Team of Business Psychology