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1 de 47
Mission Statement
“reason for being.” “What is our business?”
what an organization wants to be and whom it wants to serve
Also called a creed (Faith) statement, a statement of purpose, a
statement of philosophy, a statement of beliefs,
statement of business principles
Wal-Mart : “Saving people money so they can live better.”
GE: “build, move, power, and cure the world.”
Why do you Exist _________________
Mission Statement – Key Elements
Customer needs –
What is being satisfied
Customer groups –
Who is being satisfied
Technologies/Resources/Business approaches used --and
activities performed –
How customer needs are satisfied
Vision
“reason” for being in business
Should significantly stretch the resources and capabilities of
the farm
Should inspire people
Should unite people
Vision – Components
 Core ideology
 Core Values - timeless guiding principles
 Core Purpose - reason for being
 Envisioned future
 Big Hairy Audacious Goals (BHAG) - clearly articulated goals
 Vivid description - a graphic description of what success and the
future will be like
 Recognition of service to stakeholders
 Owners/creditors
 Employees
 Customers
Vision – Should Not be
A “high concept” statement, motto or literature or an
advertising slogan
A strategy or plan and a view from the top
A history of our proud past
A “soft” business issue
Passionless
Vision
Wal-Mart Vision
To become the worldwide leader in retailing
GE
We bring good things to life
South West Airline
To become the world’s most loved, most flown, and most profitable airline
South West Airlines
Connect People to what’s important in their lives through
friendly, reliable, and low-cost air travel.
To become the world’s most loved, most flown, and most
profitable airline.
dedication to the highest quality of Customer Service
delivered with a sense of warmth, friendliness, individual
pride, and Company Spirit.
South West Airlines
Connect People to what’s important in their lives through
friendly, reliable, and low-cost air travel. Purpose
To become the world’s most loved, most flown, and most
profitable airline. Vision
dedication to the highest quality of Customer Service
delivered with a sense of warmth, friendliness, individual
pride, and Company Spirit. Mission
Any Guess
to inspire and nurture the human spirit – one person, one cup
and one neighbourhood at a time.
Starbucks is committed to a role of environmental leadership
in all facets of our business
Vision V/S Mission
Vision Statement
Wal-Mart Vision
“To become the worldwide leader
in retailing”
GE
We bring good things to life
Mission Statement
Wal-Mart Vision
“Saving people money so they can live
better.”
GE
“build, move, power, and cure the
world.”
Vision V/S Mission
• A mission statement focuses
on current Business activities -
- “Who we are and what We
do”
 Current product and service
offerings
 Customer needs being served
 Technological and business
capabilities
• A Strategic Vision concerns a firm’s
Future business path -- “Where we
are going”
 Markets to be pursued
 Future technology-product-customer
focus
 Kind of company that management is
trying to create
represent a managerial commitment to achieve
specified results in a specified period, of time. They clearly
spell out the quantity and quality of performance to be
achieved, the time period, the process and the person who is
responsible for the achievement of the same.
Objectives
Setting the Objectives
Converts strategic vision and mission into specific
performance targets
Creates yardsticks to track performance
Pushes firm to be inventive and focused on results
Helps prevent complacency
Outcomes focused
on improving Financial
Performance
Outcomes focused on
improving Long-term
Competitive Business Position
Financial Objectives Strategic Objectives
$
Financial Objectives
• 9 to 11 percent growth in earnings per
share
• 4 to 6 percent organic revenue growth
• more than 20 percent return on invested
capital
• 100 percent free cash flow conversion
(Free Cash Flow
= Operating cash flow – capital expenditure)
Strategic Objectives
• expand 3M’s relevance to customers and
presence in the marketplace;
• gain market share and accelerate
penetration;
• invest in innovation;
• achieve regional self-sufficiency;
• build high-performing and diverse global
talent;
• and drive consistent and superior
operational excellence
Financial Performance
Competitive Business
Position
Financial Objectives
• An x percent of increase in annual
revenues.
• Annual increase in after-tax profit of x
percent.
• Annual increase in earnings per share of x
percent.
• Annual dividend increases of x percent.
• Profit margins of x percent.
Strategic Objectives
• Winning an x percent of market share.
• Achieving lower overall costs than rivals.
• Overtaking key competitors on product
performance or quality or customer
service.
• Deriving x percent of revenues from the
sale of new products introduced within the
past five years.
Financial Performance
Competitive Business
Position
Financial Objectives
• An x percent return on capital employed
(ROCE) or return on shareholders equity
investment (ROE).
• Increased shareholder value-in the form of
an upward-trending stock price.
• Bond and credit ratings of x.
• Internal cash flows of x dollars to fund new
capital investment.
Strategic Objectives
• Having broader or deeper technological
capabilities than rivals.
• Having a wider product line than rivals.
• Having a better-know or more powerful
brand name than rivals.
• Having stronger national or global sales and
distribution capabilities than rivals.
• Consistently getting new or improved
products to market ahead of rivals.
Financial Performance
Competitive Business
Position
Which type of Objective is more important
–
Strategic or Financial?
Emphasis on financial performance may assume
priority over strategic performance when company’s
Financial performance is dismal and
Survival is threatened
Otherwise, management is advised to put more emphasis on
achieving strategic objectives
Balanced scorecard approach for measuring
company performance requires both –
Financial objectives
Strategic objectives
Balanced Scorecard Approach –
Strategic and Financial Objectives
Which type of goal is more important –
Strategic or Financial?
Balance Score Card Financial
Perspective
Internal Process
Perspective
Learning & Growth
Perspective
Customer
Perspective Vision & Strategy
How do we look to Shareholders?
What must we excel at?
How can we sustain our ability to change and improve?
How do customers see us?
Balance Score Card
Objectives Measures FY-2018 FY-2019 FY-2020 Initiatives
Financial
Customer
Internal
Learning and
Growth
Balance Score Card Financial Perspective
Financial
perspective
Financial
results
(Quat/year)
Cash flow
Return on
investment
Return on
capital
employed
Balance Score Card
“Number One in
delivering Value to
Customers”.
Time
Quality
Service
Cost
Customers Perspective
Balance Score Card Internal process perspective
Internal process
perspective
Process
alignment
Process
bottlenecks
Process
automation
No of
activates
per
function
Balance Score Card Learning & Growth Perspective
Learning
& Growth
perspective
Training &
learning
opportunitie
s
Employee
Turnover
Job
satisfaction
Is there the
correct level
of expertise
for the job ?
Balance Score Card Advantages
•It is used to align the business activities to vision and strategy
•It improves Internal & External communications
•It is used to monitor organizations performance
•It provides management with comprehensive picture of operations
•It provides strategic feed back
•It improves decisions & better solutions
Balance Score Card Disadvantages
•It Doesn’t provide Recommendations
•It is not fully Efficient
•It takes time
•It is High Implementation of cost
•It can show low profit
Can you put the following in an order
Goals
Strategy
Objectives
Tactics
•A goal is a broad primary outcome.
•A strategy is the approach you take to achieve a goal.
•An objective is a measurable step you take to achieve a
strategy.
•A tactic is a tool you use in pursuing an objective associated
with a strategy.
vision: If it's smart and connected, it's best with Intel.
Mission: Utilize the power of Moore's Law to bring smart, connected
devices to every person on earth.
Goal: Make our Core PC microprocessors a category leader in sales revenue by year X.
Objective: Retain 70 percent or more of the active worldwide PC microprocessor market,
according to Passmark's CPU benchmark report.
Tactic: Through creative that underlies our messaging, leverage hardware partner brand
awareness to include key messages about the Intel Inside program.
Strategy: Persuade buyers that our Core processors are the best on the
market by associating with large, well-established PC manufacturers.
STRATEGIC FIT
MODEL
Strategic Mindsets
STRATEGIC INTENT
MODEL
Strategic thinking is driven by the
match between current capabilities
and existing opportunities
Searching for sustainable advantages
Finding protected niches
Strategic thinking is driven by bridging gap
between today’s reality and tomorrow’s
vision
Finding ways to leverage resources
Outpacing competitors in building new
advantages
Making new industry rules
Ambitious and
Compelling
Dream
Emotional and
Intellectual
Energy
Journey to the
Future
Strategic Intent
Hierarchy of strategic intent
Plans
Objectives
Mission
Goals
Vision
More Integrative Fewest in Number
More Specific Greater in Number
Characteristics of Strategic Intent
Essence of
Winning
Stable over
Time
Within “arm’s reach “ of every
consumer in the world
Increased quality, reduced costs,
cultivated export markets and
then developed a new product
Personal effort
and
Commitment
Enormous
Creativity
Enormous amount of creativity and
Innovation in terms of their
products
Trust on the technology and
accuracy
What Is Strategic Plan
Vision + Mission + Objectives + Strategy = Strategic Plan
Strategic Plan is Not a…..
A prediction for the future
A smooth, predictable, linear process
A substitute for judgment of leadership
Merging the
strategic Vision,
Objectives and
Strategy into
Strategic Plan
How Do we do this?
Merging the
strategic Vision,
Objectives and
Strategy into
Strategic Plan
We need to achieve unity ….
Vision + Mission + Objectives + Strategy
= Strategic Plan
Percolating

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Strategic formulation, intent & balance score card

  • 1. Mission Statement “reason for being.” “What is our business?” what an organization wants to be and whom it wants to serve Also called a creed (Faith) statement, a statement of purpose, a statement of philosophy, a statement of beliefs, statement of business principles Wal-Mart : “Saving people money so they can live better.” GE: “build, move, power, and cure the world.” Why do you Exist _________________
  • 2.
  • 3.
  • 4. Mission Statement – Key Elements Customer needs – What is being satisfied Customer groups – Who is being satisfied Technologies/Resources/Business approaches used --and activities performed – How customer needs are satisfied
  • 5. Vision “reason” for being in business Should significantly stretch the resources and capabilities of the farm Should inspire people Should unite people
  • 6. Vision – Components  Core ideology  Core Values - timeless guiding principles  Core Purpose - reason for being  Envisioned future  Big Hairy Audacious Goals (BHAG) - clearly articulated goals  Vivid description - a graphic description of what success and the future will be like  Recognition of service to stakeholders  Owners/creditors  Employees  Customers
  • 7. Vision – Should Not be A “high concept” statement, motto or literature or an advertising slogan A strategy or plan and a view from the top A history of our proud past A “soft” business issue Passionless
  • 8. Vision Wal-Mart Vision To become the worldwide leader in retailing GE We bring good things to life South West Airline To become the world’s most loved, most flown, and most profitable airline
  • 9. South West Airlines Connect People to what’s important in their lives through friendly, reliable, and low-cost air travel. To become the world’s most loved, most flown, and most profitable airline. dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.
  • 10. South West Airlines Connect People to what’s important in their lives through friendly, reliable, and low-cost air travel. Purpose To become the world’s most loved, most flown, and most profitable airline. Vision dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Mission
  • 11. Any Guess to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time. Starbucks is committed to a role of environmental leadership in all facets of our business
  • 12. Vision V/S Mission Vision Statement Wal-Mart Vision “To become the worldwide leader in retailing” GE We bring good things to life Mission Statement Wal-Mart Vision “Saving people money so they can live better.” GE “build, move, power, and cure the world.”
  • 13. Vision V/S Mission • A mission statement focuses on current Business activities - - “Who we are and what We do”  Current product and service offerings  Customer needs being served  Technological and business capabilities • A Strategic Vision concerns a firm’s Future business path -- “Where we are going”  Markets to be pursued  Future technology-product-customer focus  Kind of company that management is trying to create
  • 14. represent a managerial commitment to achieve specified results in a specified period, of time. They clearly spell out the quantity and quality of performance to be achieved, the time period, the process and the person who is responsible for the achievement of the same. Objectives
  • 15. Setting the Objectives Converts strategic vision and mission into specific performance targets Creates yardsticks to track performance Pushes firm to be inventive and focused on results Helps prevent complacency
  • 16. Outcomes focused on improving Financial Performance Outcomes focused on improving Long-term Competitive Business Position Financial Objectives Strategic Objectives $
  • 17. Financial Objectives • 9 to 11 percent growth in earnings per share • 4 to 6 percent organic revenue growth • more than 20 percent return on invested capital • 100 percent free cash flow conversion (Free Cash Flow = Operating cash flow – capital expenditure) Strategic Objectives • expand 3M’s relevance to customers and presence in the marketplace; • gain market share and accelerate penetration; • invest in innovation; • achieve regional self-sufficiency; • build high-performing and diverse global talent; • and drive consistent and superior operational excellence Financial Performance Competitive Business Position
  • 18. Financial Objectives • An x percent of increase in annual revenues. • Annual increase in after-tax profit of x percent. • Annual increase in earnings per share of x percent. • Annual dividend increases of x percent. • Profit margins of x percent. Strategic Objectives • Winning an x percent of market share. • Achieving lower overall costs than rivals. • Overtaking key competitors on product performance or quality or customer service. • Deriving x percent of revenues from the sale of new products introduced within the past five years. Financial Performance Competitive Business Position
  • 19. Financial Objectives • An x percent return on capital employed (ROCE) or return on shareholders equity investment (ROE). • Increased shareholder value-in the form of an upward-trending stock price. • Bond and credit ratings of x. • Internal cash flows of x dollars to fund new capital investment. Strategic Objectives • Having broader or deeper technological capabilities than rivals. • Having a wider product line than rivals. • Having a better-know or more powerful brand name than rivals. • Having stronger national or global sales and distribution capabilities than rivals. • Consistently getting new or improved products to market ahead of rivals. Financial Performance Competitive Business Position
  • 20. Which type of Objective is more important – Strategic or Financial?
  • 21. Emphasis on financial performance may assume priority over strategic performance when company’s Financial performance is dismal and Survival is threatened Otherwise, management is advised to put more emphasis on achieving strategic objectives Balanced scorecard approach for measuring company performance requires both – Financial objectives Strategic objectives
  • 22. Balanced Scorecard Approach – Strategic and Financial Objectives
  • 23. Which type of goal is more important – Strategic or Financial?
  • 24. Balance Score Card Financial Perspective Internal Process Perspective Learning & Growth Perspective Customer Perspective Vision & Strategy How do we look to Shareholders? What must we excel at? How can we sustain our ability to change and improve? How do customers see us?
  • 26. Objectives Measures FY-2018 FY-2019 FY-2020 Initiatives Financial Customer Internal Learning and Growth
  • 27.
  • 28. Balance Score Card Financial Perspective Financial perspective Financial results (Quat/year) Cash flow Return on investment Return on capital employed
  • 29. Balance Score Card “Number One in delivering Value to Customers”. Time Quality Service Cost Customers Perspective
  • 30. Balance Score Card Internal process perspective Internal process perspective Process alignment Process bottlenecks Process automation No of activates per function
  • 31. Balance Score Card Learning & Growth Perspective Learning & Growth perspective Training & learning opportunitie s Employee Turnover Job satisfaction Is there the correct level of expertise for the job ?
  • 32. Balance Score Card Advantages •It is used to align the business activities to vision and strategy •It improves Internal & External communications •It is used to monitor organizations performance •It provides management with comprehensive picture of operations •It provides strategic feed back •It improves decisions & better solutions
  • 33. Balance Score Card Disadvantages •It Doesn’t provide Recommendations •It is not fully Efficient •It takes time •It is High Implementation of cost •It can show low profit
  • 34. Can you put the following in an order Goals Strategy Objectives Tactics
  • 35. •A goal is a broad primary outcome. •A strategy is the approach you take to achieve a goal. •An objective is a measurable step you take to achieve a strategy. •A tactic is a tool you use in pursuing an objective associated with a strategy.
  • 36. vision: If it's smart and connected, it's best with Intel. Mission: Utilize the power of Moore's Law to bring smart, connected devices to every person on earth. Goal: Make our Core PC microprocessors a category leader in sales revenue by year X. Objective: Retain 70 percent or more of the active worldwide PC microprocessor market, according to Passmark's CPU benchmark report. Tactic: Through creative that underlies our messaging, leverage hardware partner brand awareness to include key messages about the Intel Inside program. Strategy: Persuade buyers that our Core processors are the best on the market by associating with large, well-established PC manufacturers.
  • 37. STRATEGIC FIT MODEL Strategic Mindsets STRATEGIC INTENT MODEL Strategic thinking is driven by the match between current capabilities and existing opportunities Searching for sustainable advantages Finding protected niches Strategic thinking is driven by bridging gap between today’s reality and tomorrow’s vision Finding ways to leverage resources Outpacing competitors in building new advantages Making new industry rules
  • 40. Hierarchy of strategic intent Plans Objectives Mission Goals Vision More Integrative Fewest in Number More Specific Greater in Number
  • 41. Characteristics of Strategic Intent Essence of Winning Stable over Time Within “arm’s reach “ of every consumer in the world Increased quality, reduced costs, cultivated export markets and then developed a new product
  • 42. Personal effort and Commitment Enormous Creativity Enormous amount of creativity and Innovation in terms of their products Trust on the technology and accuracy
  • 43.
  • 44. What Is Strategic Plan Vision + Mission + Objectives + Strategy = Strategic Plan
  • 45. Strategic Plan is Not a….. A prediction for the future A smooth, predictable, linear process A substitute for judgment of leadership
  • 46. Merging the strategic Vision, Objectives and Strategy into Strategic Plan How Do we do this?
  • 47. Merging the strategic Vision, Objectives and Strategy into Strategic Plan We need to achieve unity …. Vision + Mission + Objectives + Strategy = Strategic Plan Percolating