Session 4

• A mission statement defines the company’s business, its objectives and its approach to reach those objectives
• A vision statement describes the desired future position of the company
• Elements of mission and vision statements are often combined to provide a statement of the company’s purposes, goals and values.

  However, sometimes the two terms are used interchangeably.
• Senior Managers typically write the organization’s overall Mission and Vision Statements
• Other managers at different levels may write statements for their particular divisions or BU
• The development process

  1. Requires managers to: Clearly identify the corporate culture, values, strategy and view of the future by interviewing employees, suppliers and customers

  2. Address the commitment the organization has to its key stakeholders, including customers, employees, shareholders and communities

  3. Ensure that the objectives are measurable, the approach is actionable and the vision is achievable

  4. Communicate

  5. Develops support throughout the organization
• Organizations use Mission and Vision statements to: Internally

  • Guide management’s thinking on strategic issues, especially during times of significant change
  • Help define performance standards
  • Inspire employees to work more productively by providing focus and common goals
  • Guide employees decision making
  • Help establish a framework for ethical behaviour
• Organizations use Mission and Vision statements to:

  Externally

  • Enlist external support
  • Create closer links and better communication with customers, suppliers, alliance partners, the local community and the Government.
  • Serve as a public relations tool
• What is a Mission Statement?

  A mission statement is closely related to - and often used interchangeably with - a company’s vision statement

  A mission statement expresses your company’s core values and purpose, often using a “to statement” template. A strong mission statement is usually a concise phrase ( about two to three sentences).
• What is a strong Mission statement?

  Is usually concise phrase ( about two or three sentences ) that sets forward what company does, how it does it, and, sometimes why. It can also include information on where the company is based, its target market or audience, or a general statement about the company values and goals.

  The audience for a mission statement ranges, often encompassing consumers, employees, and investors.
• A Vision statement 


  Is a short statement - about one sentence - that describes the future-facing goals and ambitions of your company, often using a “ to statement“ template. It distills your company’s vision for the future in a way that outlines your company’s longterm goals and, similar to a mission statement, reflect your company’s core values.
• What is a well crafted vision statement?

  Should serve as a guide or a mantra that inspires your employees to work toward the greater goal of your organization.
• Purpose of Mission and Vision statements are closely related but serve slightly different purposes. In general, a mission statement describes the “what“ and “how” of the company (sometimes also including the “why”), while a vision statement focuses more on the “why” or meaning behind the company’s actions.
• Mission statement can serve as a roadmap of strategic planning to work toward the company’s vision statement.
• Describes the “what” and “how” of the company, sometimes including the why

  Mission statement
• Focuses on ”why” or meaning behind the company‘s actions

  Vision statement
• The biggest difference between mission and vision statements is:


  in the timeframe.

  A mission statement outlines all the things your company is doing in the present to reach your goal, while a vision statement describes what your company is building toward in the future.
• Mission / Vision : What is the difference?


  :::

  
• Value statements

  • Define the organization’s basic philosophy, principles and ideals.
  • They also set the ethical tone for the institution.
  • An organization’s values are evident in the statements that define the organization and the processes used to achieved its mission and vision.
• Developing a value statement

  1. Value represent the core priorities in the organization’s culture, including what drives members priorities and how they truly act in the organization. Values are increasingly important in strategic planning.
  2. Developing a values statement can be quick culture-specific, i.e, participants may use methods ranging from highly analytical and rational to highly creative and divergent.

  • ex, focused, discussion, sharing stories, divergent experiences around daydreams
• Developing a values statement

  3. Establish 4 to 6 core values from which the organization would like to operate. Consider values of customers, shareholders employees and the community
• Developing a value statement

  4. Notice any differences between the organization’s preferred values and its true values ( the values actually reflected by members’ behaviours in the organization)
• Developing a value statement

  5. Incorporate into the strategic plan, actions to align actual behaviour with preferred behaviours.
• Objectives of an organization: definition

  • Objectives are the end results toward which activity is aimed.
  • ”Objectives are goals, aims or purposes that organizations wish over varying periods of time” (Mc Farland)
  • “A managerial objective is the intended goal that prescribes definite scope and suggest direction to the planning efforts of a manager“ (Terry and Franklin)
• Guidelines for setting objectives:

  • Must be clearly specified
  • Must be set taking into account the various factors affecting their achievement
  • Should be consistent with orgnaizational mission
  • Should be rational and realistic rather than idealistic
  • Should be achievable but must provide challenge to those responsible for achievement
  • Should start with “to” and followed by an action verb
  • Should be periodically reviewed
  • Should have hierarchy
• Nature of objectives

  • Each organization or group of individuals have some objectives
  • Objectives may be broad or they may be specifically mentioned
  • Organizational objectives have social sanctions, that is, they are created within the social norms.
  • An organization may have multiplr objectives
  • Organizational objectives can be changed due to the external or internal environment of the organization
• Functions of objectives:

  1. To define an organization
  2. To provide directions for decision-making
  3. To set standard of performance
  4. To provide basis for decentralization
  5. Integrate organization, group and individuals
• The objectives are expressed within the mission and/or the vision of the organization.

  An organization’s objective is the expression of a will to live, to work and to succeed together. It’s also the definition of the methods to reach it.
• Economic objectives


  Obtain financial resources to enrich its owners, shareholders, and to finance its own development and sustainability ( managers )
• Social objectives 


  Recruit and retain talented employees and satisfy their needs ( financial needs, security, career development, employability )
• Societal objectives


  Influence the Society ( standard of living, fight against poverty, unemployment, and ecological environment )
• Marketing or commercial objectives


  Conquer markets by creating products and/or services that meet the expectations of their customers.
• Characteristics of objectives

  It should be:

  • Specific ( not vague)
  • Attractive and challenging for the stakeholders
  • Have a precise deadline
  • Have specific indicators for evaluation and measurement
• How to reach the objectives?

  Thanks to the strategy:

  • An organization strategy is the long term direction fo an organization activities. It commits its future.
  • The objective is to gain a competitive advantage based on environmental changes. By varying resources and competences.
  • Its goal is to respond to market needs and expectations of stakeholders : owners, employees, shareholders, customers, the local community
• How to reach the objectives?

  • Definition of the strategy by the CEO, top management team, Board of Directors ( involve also key employees in the definition of the organization‘s strategy).
  • Rule a set of functions and organize their coordination.
  • Motivate the actors and the stakeholders to implement the strategy.
  • Develop an effective management (reach the objectives) and an efficient management (reach the objectives with a min resources)