Vision%20 statement%20 %20an%20introduction
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1. A corporate vision statement describes an organization's desired future state and provides inspiration and direction. It conveys the company's core values, purpose, and long-term goals. 2. An effective vision statement motivates employees by painting a picture of a compelling and attainable future. It also provides guidance during strategic decision making and unifies stakeholders under a shared sense of purpose. 3. Key elements of a vision include core values that do not change over time, a core purpose for the company's existence, and ambitious long-term "visionary goals" that may take a decade or more to achieve.
Vision%20 statement%20 %20an%20introduction
- 1. Corporate Vision Statement – An Introduction A Brief Introduction to Corporate Vision Statement Singularity www.singularity.in
- 2. Corporate Vision Statement – An Introduction Corporate Vision Statement Definition A Vision is defined as 'An Image of the future we seek to create'. Corporate Vision is the overall goal of an organization that all business activities and processes should contribute towards achieving. Ideally, all team the members should be committed to, and driven by, the vision, because it is they who make it happen. As the vision nears achievement, a new corporate vision or an evolution of the existing one should be established. Corporate vision is usually summed up in a formal vision statement. Thus, we can say the following about a Corporate Vision Statement: 1. Corporate vision is a short, succinct, and inspiring statement of what the organization intends to become and to achieve at some point in the future, often stated in competitive terms. 2. Vision refers to the category of intentions that are broad, all-inclusive and forward- thinking. 3. A vision statement is what the enterprise wants to become. 4. It is the image that a business must have of its goals before it sets out to reach them. It describes aspirations for the future, without specifying the means that will be used to achieve those desired ends. 5. A company vision is a statement that summarizes the purpose of your company. The statement must inspire staff, instill confidence, and represent your business mission. 6. Vision Statement is a sentence or short paragraph providing a broad, aspirational image of the future. 7. Warren Bennis, a noted writer on leadership, says: "To choose a direction, an executive must have developed a mental image of the possible and desirable future state of the organization. This image, which we call a vision, may be as vague as a dream or as precise as a goal or a mission statement." 8. Corporate vision is a description of the company's “desired future state.” Thus a vision statement describes the organization as one would like it to be in, say, ten or more years. Note the emphasis on the future. For the vision statement isn’t true today. Rather it describes the organization as the management would like it to become - in the future. A vision is not true in the present, but only in the future. Singularity www.singularity.in
- 3. Corporate Vision Statement – An Introduction Why should an organization have a Vision Statement at all? 1. The simplest reason is that how do you reach a destination if you do not know what it is, or where do you have to go! 2. A stretching, distinctive and compelling vision that paints a picture of a future, desired and attainable state of affairs can engage and motivate. 3. “It is the clarion call that rallies the team and makes them move ahead to conquer the world” 4. A clear vision is of value internally and externally. Internally it motivates people to achieve and focus their efforts, while externally the vision should differentiate a company from its competitors. 5. Internally and externally, the common and shared element of a vision becomes a unifying factor for the organization as a whole. Everyone in the company knows what we are working towards. It thus holds a diverse people, functions and stakeholders together and provides them with a sense of common purpose. 6. It gives shape and direction to the organization’s future. 7. A vision is a statement about what your organization wants to become. It thus resonates with all members of the organization and help them feel proud, excited, and part of something much bigger than themselves. A vision stretches the organization’s capabilities and image of itself. 8. A vision statement provides direction for all stakeholders. 9. A vision projects a compelling story about the future. When Steve Jobs said, “An Apple on every desk,” well there wasn’t then an Apple on every desk. In fact, there won’t ever be an Apple on every desk. That’s OK. The vision can be figurative, rather than literal. But what it does is that it gives a clear direction to the organization – that higher objective. Singularity www.singularity.in
- 4. Corporate Vision Statement – An Introduction Elements of Company Vision While a business must continually adapt to its competitive environment, there are certain core ideals that remain relatively steady and provide guidance in the process of strategic decision-making. These unchanging ideals form the business vision. The vision statement communicates the firm's core ideology and visionary goals, generally consisting of the following three components: 1. Core values to which the firm is committed 2. Core purpose of the firm 3. Visionary goals the firm will pursue to fulfill its mission The firm's core values and purpose constitute its core ideology and remain relatively constant. They are independent of industry structure and the product life cycle. Core Values The core values are a few values (no more than five or so) that are central to the firm. Core values reflect the deeply held values of the organization and are independent of the current industry environment and management fads. One way to determine whether a value is a core value is to ask whether it would continue to be supported if circumstances changed and caused it to be seen as a liability. If the answer is that it would be kept, then it is core value. Another way to determine which values are core is to imagine the firm moving into a totally different industry. The values that would be carried with it into the new industry are the core values of the firm. Core values will not change even if the industry in which the company operates changes. If the industry changes such that the core values are not appreciated, then the firm should seek new markets where its core values are viewed as an asset. For example, if innovation is a core value but then 10 years down the road innovation is no longer valued by the current customers, rather than change its values the firm should seek new markets where innovation is advantageous. The following are a few examples of values that some firms have chosen to be in their core: • excellent customer service • pioneering technology • creativity • integrity • social responsibility Singularity www.singularity.in
- 5. Corporate Vision Statement – An Introduction Core Purpose The core purpose is the reason that the firm exists. This core purpose is expressed in a carefully formulated vision statement. Like the core values, the core purpose is relatively unchanging and for many firms endures for decades or even centuries. This purpose sets the firm apart from other firms in its industry and sets the direction in which the firm will proceed. The core purpose is an idealistic reason for being. While firms exist to earn a profit, the profit motive should not be highlighted in the vision statement since it provides little direction to the firm's employees. What is more important is how the firm will earn its profit since the "how" is what defines the firm. Initial attempts at stating a core purpose often result in too specific of a statement that focuses on a product or service. To isolate the core purpose, it is useful to ask "why" in response to first-pass, product-oriented vision statements. For example, if a market research firm initially states that its purpose is to provide market research data to its customers, asking "why" leads to the fact that the data is to help customers better understand their markets. Continuing to ask "why" may lead to the revelation that the firm's core purpose is to assist its clients in reaching their objectives by helping them to better understand their markets. The core purpose and values of the firm are not selected - they are discovered. The stated ideology should not be a goal or aspiration but rather, it should portray the firm as it really is. Any attempt to state a value that is not already held by the firm's employees is likely to not be taken seriously. Visionary Goals The visionary goals are the lofty objectives that the firm decides to pursue. This vision describes some milestone that the firm will reach in the future and may require a decade or more to achieve. In contrast to the core ideology that the firm discovers, visionary goals are selected. These visionary goals are longer term and more challenging than strategic or tactical goals. There may be only a 50% chance of realizing the vision, but the firm must believe that it can do so. Collins and Porras describe these lofty objectives as "Big, Hairy, Audacious Goals.” (BHAG – pronounced Bee Hag). These goals should be challenging enough so that people nearly gasp when they learn of them and realize the effort that will be required to reach them. Most visionary goals fall into one of the following categories: • Target - quantitative or qualitative goals such as a sales target or Ford's goal to "democratize the automobile." • Common enemy - centered on overtaking a specific firm such as the 1950's goal of Singularity www.singularity.in
- 6. Corporate Vision Statement – An Introduction Philip-Morris to displace RJR. • Role model - to become like another firm in a different industry or market. For example, a cycling accessories firm might strive to become "the Nike of the cycling industry." • Internal transformation - especially appropriate for very large corporations. For example, GE set the goal of becoming number one or number two in every market it serves. While visionary goals may require significant stretching to achieve, many visionary companies have succeeded in reaching them. Once such a goal is reached, it needs to be replaced; otherwise, it is unlikely that the organization will continue to be successful. For example, Ford succeeded in placing the automobile within the reach of everyday people, but did not replace this goal with a better one and General Motors overtook Ford in the 1930's. A powerful vision also has the following elements: 1. It focuses on operations 2. It includes measurable objectives and metrics, and 3. If it is really powerful, it changes the basis for competition in the industry. One of the best and simplest examples of a vision was expressed by Federal Express in its infancy: “We will deliver the package by 10:30 the next morning” This vision is about operations (we will get the package delivered) It has a measurable objective ( we will deliver it by 10:30 AM) It changed the basis of competition in the industry (from long, unpredictable delivery times to the guaranteed overnight delivery) Federal Express's vision told the people in the company that they had to design their processes to accomplish that vision Singularity www.singularity.in