STRATEGIC POSITION

Recognize the vocabulary of strategy(2) Click to edit Master subtitle style

4/8/12

Vocabulary of Strategy: Mission

achieve desired outcomes.

Strategies are developed in order to

These outcomes are inherent in the

org.s mission or defining purpose.

The mission guides strategic
4/8/12

decisions and provides values and a

Vocabulary of Strategy: Mission

Mission
- the over-riding purpose of the org. - Reflects the values/expectations of

stakeholders and answers the question what business are we in?

4/8/12

Vocabulary of Strategy: Mission

OF MISSION

ASHRIDGE COLLEGE MODEL

As per the model, a strong mission as articulated in the mission statement should contain the following 4 elements which should be tightly linked together resonating & reinforcing each other.
4/8/12

Vocabulary of Strategy: Mission

Ashridge Mission Model

Elements of a Mission
1. Purpose 2. Strategy 3. Values 4. Policies & standards of behaviour
4/8/12

Vocabulary of Strategy: Mission

Ashridge Mission Model

Purpose
Why does the org. exist? Who does it exist

for?

3 categories for the benefit of: a. Shareholders b. All stakeholders

4/8/12

create wealth satisfy needs

Vocabulary of Strategy: Mission

Ashridge Mission Model
Strategy Provides the commercial logic for the

co.
What is our business? What should it be?
4/8/12

Vocabulary of Strategy: Mission

Ashridge Mission Model
Values The beliefs & moral principles that lie

behind the cos culture.

4/8/12

Vocabulary of Strategy: Mission

Ashridge Mission Model
Policies & standards of behaviour.

Guidance on how the org.s business

should be conducted.
Guidelines to help people decide
4/8/12

what to do on a daily basis.

Vocabulary of Strategy: Mission

1. Inspire & motivate managers &

Purpose of a mission (can be internal/external)

employees to a higher level of performance.

2. Guide resource allocation in a

consistent manner.
3. Help balance the competing & often

conflicting interests of various stakeholders. 4/8/12

Vocabulary of Strategy: Mission

Purpose of a mission

4. Provide a sense of direction. 5. Promote shared values among

employees.
6. Refocus the org. during a crisis. 7. Improve corporate performance.
4/8/12

Vocabulary of Strategy: Mission

Importance of a mission for

corporate strategy

The org. should give serious

consideration to establishing a clear concept of its corporate mission because:

4/8/12

Vocabulary of Strategy: Mission

strategy

Importance of mission for corporate a. Customers are not only asking what

do you sell? but also what do you stand for?. Values are acknowledged as integral elements of consumers buying decisions as evidenced by the attention given to them through advertising, brand 4/8/12 building and market research.

Vocabulary of Strategy: Mission

Importance of mission for corporate

strategy

b. Studies into organizational

behaviour show that people are motivated by many things other than money. Employees are likely to be more productive when they feel what they are doing has significance 4/8/12 beyond the mere pursuit of a living.

Vocabulary of Strategy: Mission

empirical relationship between strong corporate values and profitability.

Importance of mission to corporate strategy

c. Some writers believe that there is an

4/8/12

Vocabulary of Strategy: Mission Statement

Formal documents that state the

org.s mission.
Published within the org. to promote

desired behaviour:
Support for strategy and purpose Adherence to core values Adoption of policies and standards
4/8/12

of behaviour

Vocabulary of Strategy: Mission Statement

Some are suspicious of mission

statements because:

1. They are often public relations

exercises rather than an accurate portrayal of the firms actual values.

2. They may be full of

generalizations which are impossible to tie down to specific strategic implications. 4/8/12

Vocabulary of Strategy: Mission Statement

Role in planning

The mission statement can play an

important role in the strategic planning process by:

1. Inspiring & informing planning

-to ensure that plans further the org.s goals and are consistent with its 4/8/12 core

Vocabulary of Strategy: Mission Statement

Role in planning

2. Screening

- acting as a yardstick by which plans are judged.

3. Affecting the implementation of a
4/8/12

planned strategy

Vocabulary of Strategy: Vision or strategic intent

org.s strategists.
They aim to guide the org.s

the future state desired by the

collective aspiration toward this future state.

4/8/12

Vocabulary of Strategy: Goals

A statement of general aim

or purpose that supports the mission.

May be qualitative in nature.
4/8/12

Vocabulary of Strategy: Goals

Goals can be related: Functionally Logistically

when collaborating on a project

resources shared/used in sequence on operational priorities

In a wider org.l sense -when senior execs

decide

Hierarchically
4/8/12

- in a pyramid structure

Vocabulary of Strategy: Objectives

A more specific aim/purpose Will probably be quantified Should be S-M-A-R-T

- Specific - Measurable - Achievable (attainable) - Results-focused (relevant)

4/8/12

Functions (P-R-I-M-E) Planning Responsibility Integration

Vocabulary of Strategy: Objectives

define what the plan is about define the responsibilities of managers & depts. integrate the efforts of diff. depts being consistent & supporting other

by each

Motivation so s/b created for all areas of

performance

Evaluation 4/8/12

performance is assessed against

Vocabulary of Strategy: Goals, Objectives and Targets A structure of goals & objectives derive from
the mission and support it. supportive.
An understanding of the org.s mission is All the parts of this structure s/b mutually

invaluable for setting & controlling the overall functioning and progress of the org.

However, it is possible for an org. to operate

reasonably effectively even if most of the employees have only an intuitive or vague 4/8/12 understanding of its mission (purpose).

Vocabulary of Strategy: Strategic capability

The adequacy and suitability of the

resources & competences of an org. for it to survive and prosper.

Flows from resources &

competences.

4/8/12

Vocabulary of Strategy: Business model

describes the structure of

product, service and information flows between the parties involved.

4/8/12

Vocabulary of Strategy: Strategic control

Consists of two (2) parts:

1. Monitoring the effectiveness of

strategies & actions

1. Taking corrective action when

required
4/8/12

Vocabulary of Strategy: Business analysis

Involves: analyzing the strategic position of an org., making strategic choices and implementing the strategic choice

(putting the chosen strategy into action).

Strategic Position Strategi c Choices Strategic Action

4/8/12