The Business Vision and Mission

"The very essence of leadership is that you have to have vision. You can’t blow an uncertain trumpet."
—Theodore Hesburgh

"A strategist’s job is to see the company not as it is . . . but as it can become."
—John W. Teets, Chairman of Greyhound, Inc.
 What Do We Want to Become? – a vision

• 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.
• Many organizations have both a vision and mission
statement, but the vision statement should be
established first and foremost.
• The vision statement should be short, preferably one
sentence, and as many managers as possible should
have input into developing the statement.
 Examples
• PepsiCo’s responsibility is to continually improve all aspects of the world in
which we operate—environment, social, economic—creating a better
tomorrow than today.
(comment: Statement is too vague; it should reveal beverage and food business)

• Dell’s vision is to create a company culture where environmental excellence is

second nature.
(comment: Statement is too vague; it should reveal computer business in some
manner; the word environmental is generally used to refer to natural
environment so is unclear in its use here)

• General Motors’ vision is to be the world leader in transportation products

and related services.
(comment: Good statement)
 What Is Our Business? – a mission
• Peter Drucker (the mid-1970s): asking the question
“What is our business?” is synonymous with asking
the question “What is our mission?”
• 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 clear mission statement is essential for effectively
establishing objectives and formulating strategies.
 Characteristics of a mission statement
- A Declaration of Attitude

First, allows for the generation and consideration of a range of feasible

alternative objectives and strategies
Excess specificity would limit the potential of creative growth for the
organization.
Second, be broad to reconcile differences effectively among, and appeal to,
an organization’s diverse stakeholders

Thus a mission statement should be reconciliatory.

Stakeholders include employees, managers, stockholders, boards of directors,

customers, suppliers, distributors, creditors, governments (local, state,
federal, and foreign), unions, competitors, environmental groups, and the
general public.
 Characteristics of a mission statement
- A Customer Orientation

Describes an organization’s purpose, customers, products or services,

markets, philosophy, and basic technology.

A good mission statement reflects the anticipations of customers.

- Do not offer me things

- Do not offer me clothes. Offer me attractive looks
- Do not offer me shoes. Offer me comfort for my feet and the pleasure of
walking
 Characteristics of a mission statement
- Mission Statement Components
Mission statements: vary in length, content, format, and specificity

Nine (important) components:

1. Customers – who are the firm’s customers?
2. Products or services – what are the firm’s major products or services?
3. Markets – Geographically, where does the firm compete?
4. Technology – is the firm technology current?
5. Concern for survival, growth, and profitability – is the firm committed to growth
and financial soundness?
6. Philosophy – what are the basic beliefs, values, aspirations, and ethical priorities
of the firm?
7. Self-concept – what is the firm’s distinctive competence or 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?
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Practical Examples of Mission Statement

Components

Customer-market

To anticipate and meet market needs of farmers, ranchers,

and rural communities within North America (CENEX)

Product-service

AMAX’s principal products are molybdenum, coal, iron ore,

copper, lead, zinc, petroleum and natural gas,. potash
phosphates, nickel, tungsten, silver, gold, and magnesium
 8

Geographic domain

We are dedicated to total success of Corning Glass Works as

a worldwide competitor
Technology

The common technology in these areas relates to

discrete particle coatings (NASHUA)
Concern for Survival
In this respect, the company will conduct its operations
prudently, and will provide the profits and growth which
will assure Hoover’s ultimate success
 9

Philosophy
We are committed to improve health care throughout the world
(Baxter Travenol)

Self-concept
Hoover Universal is a diversified, multi-industry corporation
with strong manufacturing capabilities, entrepreneurial
policies, and individual business unit autonomy

Concern for Public Image

We are responsible to the communities in which we live
and work and to the world community as well (Johnson &
Johnson)
 Example
• Dell’s mission is to be the most successful computer company
(2) in the world (3) at delivering the best customer experience
in markets we serve (1). In doing so, Dell will meet customer
expectations of highest quality; leading technology (4);
competitive pricing; individual and company accountability
(6); best-in-class service and support (7); flexible
customization capability (7); superior corporate citizenship
(8); financial stability (5).
• (Comment: Statement lacks only one component: Concern for
Employees((9))
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Newest Trends in Mission Components

• Sensitivity to customer wants

• “The customer is our top priority!”
• Emphasis on extensive product safety programs
• Concern for quality
• “Quality is job one!”
• Emphasis on quality in manufacturing
• New philosophy – quality is the norm
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Newest Trends in Mission Components

• Statements of company vision

• Developed to express the aspirations of
the executive leadership
• Presents the firm’s strategic intent
• “A computer on every desk, and in every home,
running on Microsoft software”
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Key Elements of Customer Service-Driven

Organizations
• A mission statement or sense of mission makes customer service a
priority
• Customer service goals are clearly defined
• Customer service standards are clearly defined
• Customer satisfaction with existing products and services is
continuously measured
• Ongoing efforts are made to understand customers to determine
where the organization should be headed
• Corrective action procedures are in place to remove barriers
to servicing customers in a timely and effective fashion
• Customer service goals have an impact on organizational
action