BUS470 Building your Company's Vision Mini-Lecture
Summary
TLDRThis video discusses the importance of a company's vision and mission statements. It explains that a mission statement sets the business's scope and product-market fit, while a vision statement captures the company's aspirations and strategic direction. The video also mentions that some firms combine these into one or add core values to communicate employee expectations. The success of these statements lies in their clarity and communication of objectives and capabilities. The video references a Harvard Business Review article that breaks down vision into core ideology and an envisioned future, emphasizing the need for a vivid description and the 'five why's' technique to understand the company's purpose.
Takeaways
- π A mission statement sets boundaries for a company's business scope and market, guiding consistent investment decisions.
- π£οΈ Mission statements should be concise, typically no longer than several sentences, to maintain impact.
- π The strategic plan may include a vision statement that captures the company's aspirations and strategic direction.
- π― Vision statements might focus on market dominance or achieving the lowest cost in the industry.
- 𧩠The distinction between mission and vision is not fixed; some companies combine them or have additional core values.
- π€ Core values can communicate expectations about employee behavior and signal the company's conduct style.
- π A vision consists of core ideology (core values and purpose) and an envisioned future (long-term goals).
- π Big hairy audacious goals (BHAGs) are long-term, ambitious objectives that can be quantitative or qualitative.
- πΌοΈ Translating the vision into vivid descriptions and pictures helps internalize and communicate the company's aspirations.
- π The 'five why's' technique is used to delve into the fundamental reasons behind a company's existence and industry involvement.
- π Articulating the 'why' can be a key differentiator, as exemplified by Granite Rock Company winning a significant contract.
Q & A
What is a mission statement and why is it important?
-A mission statement is a brief description of a company's scope in terms of its product line and market served. It's important because it sets boundaries for the types of investments consistent with the business and communicates the firm's purpose to various stakeholders.
What is the recommended length for a mission statement?
-The mission statement should generally be no longer than several sentences. Longer statements tend to lose their impact.
How does a mission statement differ from a vision statement?
-A mission statement defines the scope of the business, while a vision statement captures the firm's aspirations and strategic direction. The vision statement is usually quite short and focuses on the future goals of the company.
Can a company have both a mission and a vision statement?
-Yes, some firms have both a mission statement and a vision statement. The mission statement describes the current scope and purpose, while the vision statement outlines the future aspirations and direction.
What is the purpose of having core values within a company?
-Core values communicate expectations about employee behavior and signal the style in which the organization will conduct business. They may be included within the mission statement or as a separate section.
What is the difference between core ideology and an envisioned future in a vision statement?
-Core ideology contains the core values and the core purpose, which are the enduring features of the organization. The envisioned future includes long-term goals, often referred to as a 'big hairy audacious goal' (BHAG), which can be quantitative or qualitative.
What is the significance of a 'big hairy audacious goal' (BHAG)?
-A BHAG is a long-term, ambitious goal that is clear, compelling, and acts as a rallying point for an organization. It serves to focus and drive the company towards significant achievements.
How can a company translate its vision into actionable goals?
-A company can translate its vision into actionable goals by setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives that align with the vision and core values.
What is the 'five why's' technique mentioned in the script?
-The 'five why's' technique is a method of asking 'why' repeatedly to delve deeper into the reasons behind actions or decisions. It helps a company understand its core purpose and the underlying reasons for its existence.
How did Granite Rock Company use the 'five why's' technique to win a contract?
-Granite Rock Company used the 'five why's' technique to articulate their core purpose of improving the quality of manmade structures, which ultimately led to them winning a significant contract by demonstrating their commitment to making people's lives better.
Why is it important for a company to clearly communicate its mission and vision?
-Clear communication of mission and vision is important because it helps align stakeholders' expectations, motivates employees, guides strategic planning, and can be a key differentiator in competitive markets.
Outlines
π Introduction to Company Vision and Mission
The paragraph introduces the concept of a company's vision and mission. It explains that a strategic plan should start with a mission statement that outlines the business's scope in terms of product lines and markets served. This mission statement sets boundaries for consistent investments and is typically brief to maintain impact. The paragraph also touches on vision statements, which are short and capture the company's aspirations and strategic direction. It notes that the distinction between mission and vision can vary, with some firms combining them or including core values within the mission statement. The success of these statements depends on their communication of objectives, resources, and capabilities. The paragraph references a Harvard Business Review article that discusses the two parts of a vision: core ideology and an envisioned future, including core values, purpose, and long-term goals (BHAGs). It also mentions the importance of translating the vision into vivid imagery and using the 'five why's' technique to understand the underlying reasons for a company's existence.
Mindmap
Keywords
π‘Mission Statement
π‘Vision Statement
π‘Scope
π‘Core Ideology
π‘Core Values
π‘Core Purpose
π‘Big Hairy Audacious Goal (BHAG)
π‘Strategic Plan
π‘Five Why's
π‘Granite Rock Company
π‘Translation
Highlights
A company's vision is discussed briefly in the video.
The strategic plan should begin with a mission statement that describes the business's product line and market served.
The mission statement sets boundaries for consistent business investments.
A mission statement should generally be no longer than several sentences.
The plan may contain a separate section on the general goals of the firm, known as the vision statement.
The vision statement is usually short and captures the firm's aspirations and strategic direction.
The difference between mission and vision is not fixed and can vary by firm.
Some firms combine the scope and intent of the message in a single mission statement.
Others have core values that communicate expectations about employee behavior.
Core values can sometimes be included within the mission statement.
The success of mission and vision statements depends on their communication of the firm's objectives and capabilities.
Mission and vision statements are used as framing devices for strategic plans.
A vision statement contains two parts: core ideology and an envisioned future.
Core ideology includes core values and the core purpose of the organization.
The envisioned future includes a long-term goal, often referred to as a BHAG (Big Hairy Audacious Goal).
The vision should be translated from words to pictures for better understanding.
The 'five why's' technique is used to delve into the reasons behind the firm's existence.
A concrete firm example is given where they figured out their 'why' to provide better asphalt for runways.
Granite Rock Company of Watsonville, California, won a contract by articulating their 'why'.
When creating mission and vision statements, consider the core values and purpose of the organization.
Transcripts
hello well in this video I'll be talking
briefly about a company's vision so
before we get to the vision right we
played back this chapter the strategic
plan should begin with a statement that
describes the scope of the business in
terms of its product line and market
served right this is called a mission
statement and this section of the plan
puts a boundary of the types of
investments that are consistent they
didn't give the business break the
mission statement should generally or
typically be no longer than several
sentences longer statements tend to lose
their impact right we communicate with
no organization or to customers
suppliers and investors now the plan
sometimes contains a separate section on
the general goals of the firm this
vision statement right is usually quite
short and it captures the firm's
aspirations in strategic direction now
for example write the business may
target market dominance through a
combination of service quality and
awareness or the vision might focus on
achieving the lowest cost in the
industry now note that the station
between mission and vision is not fixed
in practice right some firms might have
only a mission statement combining the
scope and intent of the message right
others have yet an additional set of
core values that communicate
expectations about employee behavior and
signal the style in which the
organization will conduct business
sometimes the firm's include values
within the mission statement itself as
well now the success of the mission and
vision statements depend less on how
they're structured whereas more so it's
more about what they communicate and how
well they communicate the firm's
objectives and key resources and
capabilities now many firms use the
mission and vision statements as preamp
or framing devices for strategic plans
as a whole now in remembrance to the
back to this another Harvard Business
Review article called building a
company's vision by James D Collins and
Jerry Oh for us and it goes two parts
which looks at vision same vision
contains two distinct parts to it right
one is core ideology and the other one
has an envision future now particularly
envision here right it's the core
ideology which contains the core values
and the core purpose in the initiative
feature in which they have a 10 to 30
year be hag or a big hairy audacious
goal and you did the description now
right late sharing the core values
Oracle easy central tenants and from
there you get the core purpose right the
core purpose is the reason for being
those two things combined are the core
ideology of organization and then you
have the big hairy audacious goals right
the long-term goals they can be
quantitative or qualitative right
Walmart become a hundred twenty billion
dollar company by the year 2000 this is
back in 1990 and then from there they
have a vivid description of what they
are right you must translate the vision
from words to pictures of divya switch
that what we like to achieve their goal
and then one of the things which they
say then it's putting it all together
right let me come up this idea of the
five why's right so it's asking yourself
why do you do something why'd you come
we do something and then ask again why
and then again but why they call this
the five why's Greg needs this article
gives an example of a concrete firm
right in which the concrete firm try to
figure out why they're in the industry
it's saying well it's to provide
better asphalt for runways or to build
better buildings and delving down to
this right
it was simply they found a reason for
being to be to make people's lives
better by improving the quality of
manmade structures right in this example
here it was granite rock company of
Watsonville California
and they actually won a huge contract
beating out several competitors because
they were able to articulate their why
that how much better so as you start
looking at mission and vision statements
you'll be creating mission and vision
statements and shoes you've seen the
support companies coming up here in the
next few weeks keep this in mind
Browse More Related Video
The Mission, Vision, and Values statements
The Difference Between Mission And Vision Statement [PLUS EXAMPLES]
ICTM Week 1 MIssion, Vision and Core Values
Vision, Mission, Value (With Examples and Tips) | From A Business Professor
ICTM Week 1 MIssion, Vision and Core Values
What Are Strategic Objectives? I Strategic Objectives Defined
5.0 / 5 (0 votes)