Mission Statement

Note: Throughout this course, you should complete the SLP before you undertake the case analysis. Before you begin the SLP, you need to read the background materials thoroughly. For the Session Long Project (SLP), we are going to create a "strategic toolkit", which, once assembled, will allow you to undertake strategic planning and implementation projects in any organization. Then you will be able to put this skill to work immediately in the case for the module. The goal is skills-building, and each module we will focus on developing a skill for a different phase of the strategy-making process. This module we will be learning what constitutes a good mission and vision statement and developing a list of criteria for evaluating existing statements. Then you will use these criteria to evaluate a corporate mission/vision in the case. Step One: Read Jack Welch's opinion on what makes for a good mission statement: Welch, J., & Welch, S. (2008). State your business: Too many mission statements are loaded with fatheaded jargon. Play it straight. Business Week, (4066)80. Retrieved from http://www(dot)businessweek(dot)com/magazine/content/08_02/b4066080139784.htm?chan=search Step Two: Read the background materials and perhaps conduct additional research on websites dedicated to writing mission statements. You may rely solely on the websites in the background materials or suppliment them if you wish. You will find that there are a great many opinions on what constitutes a "good" mission statement. Your job is to identify five criteria that YOU think are crucial to good mission statements. Step Three: Research the background websites dedicated to writing vision statements. Again, you may suppliment them if you wish. Identify five criteria you think are critical to good vision statements. Step Four: In a 2-3 page paper List the five criteria you have chosen for mission and vision (5 each). This can be a bulleted list. Justify your choices. Explain why you think these particular criteria are important. Compare what the two lists have in common and in what ways they differ. SLP Expectations: Be sure to document where you obtained your information through in-text citations and a full reference list. This paper does not have to include an executive summary, but should have an introduction, conclusion and major headings. Module 1 - Background NOTE: ALL READINGS AND PRESENTATIONS ON THIS PAGE ARE REQUIRED, UNLESS OTHERWISE NOTED AS "OPTIONAL" Strategic management is a company-wide process that includes a long-term plan of action that assists in achieving an organization's objectives and fulfills company vision. Process of Strategic Management This course focuses on the steps and stages of preparing and implementing a strategic plan. Though we do not have time in one short course to go through the entire process in detail, buy the end of the course you will know what you would need to do and have the tools to develop a plan, if you needed to participate in the process. The following two readings give an overview of the planning process and serve as a good introduction and overview of the course. McNamara, C. (2009). Developing your strategic plan. Retrieved from Free Management Library. Web site: http://www(dot)managementhelp(dot)org/np_progs/sp_mod/str_plan.htm The strategic planning process. (2007). Retrieved May 14, 2009, from QuickMBA. Web site: http://www(dot)quickmba(dot)com/strategy/strategic-planning/ Overview Developing a Vision/Mission/Goals and Objectives (Module 1) Analyzing the company (internal) and environment (external) (Modules 2 and 3) Identifying internal Strengths and Weaknesses and external Threats and Opportunities (SWOT) (Modules 2 and 3) Articulating strategic choices at the business, functional, and corporate levels (Module 4) Implementing strategic choices through structures and culture, as well as controls to ensure vision/mission/goals accomplishments. (Module 5) Click here for a Power Point presentation summarizing Strategic Management by Professor Anastasia M. Luca Missions, Visions, and Goals We will begin by studying the first step of the strategic planning process. It is this step that gives guidance to the rest of the process and insures that all parties to the strategic plan are on the same page. Mission statements spell out the reason for an organization's existance. At the very most basic level, mission statements articulate who the company is, why it exists, and what it does. They set up the long-term direction of the company, incorporate the goals of the main stakeholders (shareholders, customers, suppliers, employees), and can stand the test of time. Examples of Mission Statements (from http://sbinformation(dot)about(dot)com/cs/businessplans/a/mission.htm) The Elephant Sanctuary: "A Natural-Habitat Refuge Where Sick, Old and Needy Elephants Can Once Again Walk The Earth In Peace and Dignity." One powerful statement that evokes emotion and instant attachment to the cause of this organization. Sun Microsystems: "Solve complex network computing problems for governments, enterprises, and service providers." A simple mission statement identifying who their market is and what they do. Ben & Jerry's Ice Cream: A product mission stated as: "To make, distribute & sell the finest quality all natural ice cream & euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment." This mission inspired Ben and Jerry to build a cause-related company. Joe Boxer: "JOE BOXER is dedicated to bringing new and creative ideas to the market place, both in our product offerings as well as our marketing events. We will continue to develop our unique brand positioning, to maintain and grow our solid brand recognition, and to adhere to high quality design standards. Because everyone wants to have fun everyday, JOE BOXER will continue to offer something for everyone with fun always in mind." Some mission statements are epic in scope. Here are some examples of mission statements from the past that promised nothing less than revolutionizing industry: Ford Motor Company (early 1900's): "Ford will democratize the automobile" Sony (early 1950's): "Become the company most known for changing the worldwide poor-quality image of Japanese products" Boeing (1950): "Become the dominant player in commercial aircraft and bring the world into the jet age" Wal-Mart (1990): "Become a $125 billion company by the year 2000" The mission statement should be the first consideration for anyone engaged in strategic planning or decisions which have strategic implications. Any action taken by the organization should be compatible with their expressed mission. Vision statements are similar to missions in that they also define the organization's purpose, but they do so by focusing on the organizations core beliefs in how things should be done. They establish an image of a future that the organization aspires to create. Vision statements are meant to be inspiring. They give direction to employees concerning how they should carry out their jobs, and signal customers on the values of the organization. Examples of Vision Statements Heinz: "THE WORLD'S PREMIER FOOD COMPANY, OFFERING NUTRITIOUS, SUPERIOR TASTING FOODS TO PEOPLE EVERYWHERE." Being the premier food company does not mean being the biggest but it does mean being the best in terms of consumer value, customer service, employee talent, and consistent and predictable growth. Chevron: At the heart of The Chevron Way is our vision ..."to be the global energy company most admired for its people, partnership and performance". Pfizer: "We will become the world's most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live". Value statements identify the ethos of a company - or the ethics under which an organization plans to conduct business. Every mission and vision inherently is based on the organization's core values. Some organizations articulate those values (often in rather lengthy treatises), others just depend on their mission and vision to communicate their values. Goals and objectives parcel out the vision into achievable units that are further subdivided into smaller and smaller units. Goals are quantifiable and measurable, are important, and attainable. They can include deadlines and are expressed in terms of market share, revenue, profit for the organization as a whole. The following short articles will give you a better idea about the functions and content of mission and vision statements. The business vision and company mission statement. (2007). Retrieved from QuickMBA. Web site: http://www(dot)quickmba(dot)com/strategy/vision/ Heathfield, S.M. (2009). Build a strategic framework: mission statement, vision, values. Retrieved from About.com. Web site: http://humanresources(dot)about(dot)com/cs/strategicplanning1/a/strategicplan.htm McNamara, C. (2009). Basics of developing mission, vision and values statements. Retrieved from Free Management Library. Web site: http://www(dot)managementhelp(dot)org/plan_dec/str_plan/stmnts.htm Stakeholders Read the following short piece on Stateholder Analysis: n.a. (2009). Stakeholder analysis. Assessing who or what really counts. 12manage: The executive fast track. Retrieved from http://www(dot)12manage(dot)com/methods_stakeholder_analysis.html Organizational Stakeholders are all individuals and groups of individuals who have an interest (give-and-take) relationship with the firm. Many people think only of shareholders when they think about stakeholders. However, we will see that shareholders are only one of many groups of stakeholders. It may be helpful to remember what you learned in elementary school about the relationships between squares and rectangles. That is, "all squares must be rectangles but not all rectangles are squares". Similarly, all shareholders are stakeholders, but not all stakeholders must be shareholders! Classification of Stakeholders Internal Stakeholders External Stakeholders Stockholders Customers Employees Suppliers CEO and executives Government Managers and Supervisors Unions Board Members Communities (local and beyond) The General Public Click here for a Power Point presentation summarizing this material about Organizational Stakeholders by Professor Anastasia M. Luca REQUIRED READING Heathfield, S.M. (2009). Build a strategic framework: mission statement, vision, values. Retrieved from About.com. Web site: http://humanresources(dot)about(dot)com/cs/strategicplanning1/a/strategicplan.htm Luca, A. M. (2007). Organizational Stakeholders. Power Point Presentation. Luca, A. M. (2007). Strategic Management. Power Point Presentation. McNamara, C. (2009). Basics of developing mission, vision and values statements. Retrieved from Free Management Library. Web site: http://www(dot)managementhelp(dot)org/plan_dec/str_plan/stmnts.htm McNamara, C. (2009). Developing your strategic plan. Retrieved from Free Management Library. Web site: http://www(dot)managementhelp(dot)org/np_progs/sp_mod/str_plan.htm The strategic planning process. (2007). Retrieved May 14, 2009, from QuickMBA. Web site: http://www(dot)quickmba(dot)com/strategy/strategic-planning/ n.a. (2009). Stakeholder analysis. Assessing who or what really counts. 12manage: The executive fast track. Retrieved from http://www(dot)12manage(dot)com/methods_stakeholder_analysis.html n.a. (2007) The business vision and company mission statement. Retrieved from QuickMBA. Web site: http://www(dot)quickmba(dot)com/strategy/vision/ Case Readings n.a. Guidelines for writing the executive summary. Retrieved from http://www(dot)highendfinance(dot)com/CommercialLoans/Docs/07-4%20ES%20Guidelines.doc SLP Readings Welch, J., & Welch, S. (2008). State your business: Too many mission statements are loaded with fatheaded jargon. Play it straight. Business Week, (4066)80. Retrieved from http://www(dot)businessweek(dot)com/magazine/content/08_02/b4066080139784.htm?chan=search Optional Readings: Hammonds, K. (2007). Michael Porter's Big ideas, Fast Company, (44), Retrieved from Fast Company. Web site: http://www(dot)fastcompany(dot)com/magazine/44/porter.html