DIRECTIONAL

STRATEGIES
CHAPTER 5
COURSE INSTRUCTOR
DR. ASIMA FAISAL
 THE VALUE OF LOYALTY

 If employees do not have the right attitude, they should never

have been hired; and if they are currently with the organization,
they should be fired because employees with a poor attitude will
not deliver exemplary service and will spread an “anti-attitude
virus” that infects customer loyalty one customer at a time
 WHAT IS DIRECTIONAL STRATEGY?

Mission, vision, values, and strategic goals are

appropriately called directional strategies because
they guide strategists when they make key
organizational decisions.
 There are three elements to strategic planning – the heart, the head, and the gut. Each is
critical to success and each plays an important role in the organization’s ultimate course of
action.

The heart of The head of strategic The Strategic planning gut

strategic planning planning is the analytical
involves the mission, aspect of the process.
vision, and values of Assessments, strategic goals,
the organization and and
testing actions against competitive analysis are
these important important parts of strategic
directional strategies. analysis, as are financial
and marketing data.
utilizes the collective experience
and intuition of as many people
as possible
in the organization. It is the
organization’s ability to predict
and interpret the changing
winds.
 ORGANIZATIONAL PURPOSE AND MISSION
 Chester Barnard, in The Functions of the Executive, stated that only
three things are needed to have an organization:
 (1) communication,
 (2) a willingness to serve, and
 (3) a common purpose.

 An organizational mission is a broadly defined and enduring statement

of purpose that distinguishes a health care organization from other
organizations.
Mission statements often suffer from the following problems:
1. Many organizations write the mission statement for public relations value.
2. Many organizations write mission statements that essentially describe the mission of any
organization
in their service category. Mission statements should capture the uniqueness of the organization
and
not just be a generic statement that could be adapted to any competitor.
3. Many organizations spend more time crafting a “good” mission statement than trying to
implement and follow it. People need to see words in action!

Mission statements, if they are to be useful, must state the purpose of the organization and
provide a good sense of what the organization is devoted to achieve.
A mission statement should help the organization focus on its uniqueness.
Writing a mission statement is important; however, living it is more important. Whatever
is incorporated into the mission statement must be credible, realistic, attainable, and assist
in differentiating the organization from all its competitors.
CHARACTERISTICS OF MISSION
STATEMENTS

 Missions are broadly defined statements of purpose.

 Mission statements are enduring.
 Mission statements should underscore the uniqueness of the
organization
 Mission statements should identify the scope of operations in
terms of service and market
COMPONENTS OF MISSION STATEMENTS
 Mission statements target customers and markets.
 Mission statements indicate the principal services delivered or product
provided by the organization.
 Mission statements specify the geographical area within which the
organization intends to concentrate
 Mission statements identify the organization’s philosophy
 Mission statements include confirmation of the organization’s
preferred self-image.
 Mission statements specify the organization’s desired public image
BUILDING A MISSION STATEMENT
 Vision: Hope for the Future
 The mission is developed from the needs of all the stakeholders – groups who have a
vested interest in the success and survival of the organization. Vision, on the other
hand, is an expression of hope. It is a description of what the organization will be
like and look like when it is fulfilling its purpose.

Origins of Vision
These factors work together to form an organization’s hope
for the future.

HISTORY AND VISION

VISION AND THE ENVIRONMENT

VISION AND INTERNAL CAPACITY
 CREATING MEANINGFUL
VISION STATEMENTS
• The purpose of a vision statement is to provide
a group with a shared image of its direction The job of building a vision for an
over the long term. organization is frequently referred to as
• It catalyzes a group’s efforts and focuses path finding. When the leader of a health
decisions. Vision statements should: care organization functions as a
• Describe an organization’s big picture and Path finder, the focus is on the long run.
project its future,
• Be grounded in sound knowledge of the The goal of the pathfinder is to provide a
business, vision, find the paths the organization
• Be concrete and as specific as practical, should pursue, and provide a clearly
• Contrast the present and the future, marked trail for those who will follow
• Stretch the imaginations and creative
energies of people in the organization,
have a sense of significance and matter.
 CHARACTERISTICS OF EFFECTIVE
VISION
 If vision is based on hope, it is – in reality – a snapshot of the future that the health care
manager wants to create. It has been said that for an organizational vision to be successful it
must be clear, coherent, consistent, have communicative power, and be flexible
1. Visions should be inspiring, not merely quantitative goals
2. Visions should be clear, challenging, and about excellence.
3. Visions must make sense in the relevant community,
4. Visions must be stable, but constantly challenged and changed when necessary.
5. Visions empower employees
6. Visions prepare for the future while honoring the past
7. Visions come alive in details, not in broad generalities
 VALUES AS GUIDING PRINCIPLES

 Values are the fundamental principles that organizations and people stand
for – along with the mission and vision, they make an organization
unique. Most often, discussions of organizational values relate to ethical
behavior and socially responsible decision making
 FROM MISSION, VISION, AND VALUES TO
STRATEGIC GOALS
 Once strategic leaders are confident that the mission, vision,
and values are well formulated, understood, communicated,
and expressed in writing, they have to focus on the activities
that will make the most progress toward accomplishing the
mission and moving the organization toward a realization of its
vision.
 Well-written mission statements are the beginning point for
strategic goal setting
 STRATEGIC GOALS POSSESS THE
FOLLOWING CHARACTERISTICS:
 Strategic goals should relate specifically to activities that are
critical to accomplish the mission
 Strategic goals should be the link between critical success
factors and strategic momentum
 Strategic goals should be limited in number.
 Strategic goals should be formulated by leaders but should be
stated in terms that can be easily understood and appreciated
by everyone in the organization.
 BOARD PROCESS: MISSING LINK?
 The lack of consistent association between factors such as board size,
independence, CEO duality, member expertise, and organizational
performance on financial measures has encouraged researchers to look at
different variables.
Factors that lead to more effective boards
 Engage in constructive conflicts
 Avoid destructive conflict
 Work together as a team
 Know the appropriate level of strategic involvement
 Address decisions comprehensively
THANK YOU