There is no person or organisation that can make an impact if there is no clear vision, mission, goal and objectives.
This post is very important for you first and foremost to develop these core values. You will learn what vision, mission, goals and objectives are and how important they are for you to reach your zenith. This post will also assist you to re-package your business for greater impact.
Vision and Purpose
Vision is very vital to human existence. The Holy Scripture says “my people perish for lack of vision”. Vision according to Lynch (1997) is the future picture, while Hagin and Vincze (1992) described vision as a form of non-specific guidance normally produced to an organisation by its Chief Executive Officer (CEO). Kotter (1990) sees vision as “description of something (an organisation, corporate culture, a business technology, an activity) in future.
Miller and Dess (1996) defines it as category of intentions that are broad, all inclusive, and forward thinking”.
Vision describes where an organisation is going in the most general, conceptual terms; it must also provide emotional direction. Vision must be inspiring if it must be effective, clear and challenging. Vision provides guidance about what core it uses, true and what future to stimulate progress towards.
Components of vision
According to Collins and Porras (1996) a well conceived vision consists of two major components core ideology and envisioned future. They described core ideology as “the enduring character of an organisation – a consistent identity that transcends product or market life cycles, technological breakthroughs, management fads, and individual leaders. The core ideology also classified into two namely core values and core purpose.
Core values are the essential and enduring tenets of an organisation. It is timeless as it becomes the guiding principles of all the organisational members. It must be internally developed. It must reflect what an organisation stands for no matter the situation.
Organisation must and should not change its core value in response to market changes, it should rather change markets if necessary, to remain true to its core values.
Most organisations have both vision and mission statements but not all organisations have statement of organisations value.
Core Purpose according to Collins and Porras (1996) is the reason for the organisation being an effective purpose reflects people’s idealistic motivations for doing the company’s work.
The organisation’s purpose must give a vivid description of the activities that the organisation intends to perform and the kind of organisation it intends to be. The development of the organisation purpose requires the founding fathers to take the process beyond the current horizons, to explore future opportunities and challenges.
The second part of Vision is the Envision future while core ideology is a discovery process, setting an envisioned future is creative.
The envisioned future must be so exiting such that it will continue to keep an organisation motivated even if the founders are no longer in existence. In developing vision and purpose of an organisation careful attention should be given to areas of:
Technology Development
Creativity
Innovation and
Quality
Technology is the advancement in technical knowhow, superior tools for delivery of exceptional service, while Creativity is thinking up new ideas in products/services and service/product delivery.
Innovation, on the hand, is either innovation in product or service or innovation in the various skills and activities needed to supply them (Drucker, 1976). Innovation is doing new things (Fafowora, 1998). Quality is improved programme built in to the organisational systems/processes.
Assessing the corporate vision and purpose: Criteria
The organisational leaders must make an attempt to evaluate the genuineness of the vision whether it could really stand the test and challenges of the future. The vision could be assessed based on the following:
i. Foresightness
ii. Broadness of vision
iii. Uniqueness of vision
iv. Consensus of vision
v. Practicality / Actionability of vision
vi. Accessibility of vision
Ways organisations can define their purpose
Drucker (1976) says “if we want to know what a business is we have to start with its purpose and its purpose must lie outside of the enterprise itself. In fact, must lie in society since a business enterprise is an organ of society.
There is only one valid definition of business purpose, “to create a customer”.
The purpose of an organisation must be defined to reflect the current and the future business, there are three ways of determining the current business as postulated by Drucker (1976):
i. Identification of the Customer – Who is the customer? Where is the customer? How does the customer buy? and how is the customer reached? These and many other questions would be asked, answers provided would show the direction of the organisation purpose.
ii. What does the Customer buy? – This question should bring about the quality, price, size of the product and service.
iii. Determination of the Unique value the customer is Looking for in the Product – Armed with the three questions above, an organisation will be in a position to define its purpose.
Since the market environment is dynamic, an organisation must necessarily envision the future and make an attempt to show case what type of future it would be looking forward to have.
In order to identify of what the future business will be and what it should be, Drucker (1976) identifies four areas where attention should be focused in order to have a clear future of the business:
i. Market Potential and Trend – If there are no major changes in the market structure, how large and how stable are the potential market? What does the long term trend look like?
ii. What changes in market structure might occur as a result of economic developments? – How does change in styles or fashions, or moves by the competition affect business? How will continuous rise in major economic variables/inputs affect business?
iii. What possible innovations will alter the customers buying habits? – What new ideas or product/service might create new customer demands or eliminate old demands? Consider for example the impact of the VCD on sales of cassette.
iv. What need does the customer presently have that are not being adequately served by available products and services? Will continuous innovation and creativity in serving current needs of customer enhance corporate growth?
Benefits of Well Conceived Vision
Kazmi (2004) quoting Parkh and Neubauer (1993) listed the following as the benefits of having vision:
i. Good visions are inspiring and exhilarating.
ii. Visions represent a discontinuity, a step forward, and a jump ahead so that the company knows what it is to be.
iii. Good visions help in the creation of a common identity and a shared sense of purpose.
iv. Good visions are competitive, original and unique. They make sense in the market place as they are practical.
v. Good visions foster risk-taking and experimentation.
vi. Good visions represent integrity; they are truly genuine and can be used for the benefit of people.
Discuss briefly the core elements that are to guide the future of any business oriented organisation
Market potential and trend, changing fashion and trends; innovation and market development
Corporate Mission
Vision is essentially futuristic, and a forward-looking view of what an organisation intends to become, while mission is what an organisation is and the reason for its existence.
A meaningful corporate mission statement must specifically state the fundamental and unique reason for its being and how it is different from other corporate organisations.
Corporate mission has been variously defined, Pearce II and Robinson Jr. (2004) define company missions as “the fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of its operations in product and market terms” mission statement broadly stated. Is the definition of basic scope and operators that differentiate one organisation, from another.
Thomson (1997) also sees mission as the “essential purpose of the organisation, concerning particularly why it is in existence, the nature of business(es) it is in, and the customers it seeks to serve and satisfy”.
Hunger and Wheeler (1999) define mission as the “purpose or reason for the organisations existence”.
Looking at various definitions of corporate mission, he essentials/element is that it defines the very reason why the organisation exists, that specific need within the society that it intend to serve and satisfy.
Formulation of Mission Statements
Corporate mission formulation process depends on whether it is an existing organisation or that which is just about to start the operation.
It is assumed that every organisation in existence has at least a basic mission statement which could be subjected to review as the need arises, this will be discussed later in this study session.
Our attention in this section would be focused on how new outfits can come up with an acceptable mission statement.
Pearce II and Robinson Jr. (2004) are of the opinion that typical business organisation begins with the beliefs, desires and aspiration of a single entrepreneur. The sense of mission for such an owner-manager is usually based on several fundamental elements which they suggested to include:
- Belief that the product or service can provide benefits at least equal to its price.
- Belief that the product or service can satisfy a customer and currently not met adequately for specific market segments.
- Belief that the technology to be used in production will provide a product or service that is cost and quality competitive.
- Belief that with hard work and the support of others the business can do better than just survive, it can grow and be profitable.
- Belief that the management philosophy of the business will result in a favourable public image and will provide financial and psychological rewards for those willing to invest their labour and money in helping the firm to succeed.
- Belief that the entrepreneur’s self-concept of the business can be communicated to and adopted by employees and stockholders.
Reasons why Mission Statements may Change
Mission statements do not change often and it should not change often. Once it is formulated, it should serve an organisation for many years.
This is why, vision and purpose must be taken into consideration before formulating the mission statement because it must reflect both current and future strategic intentions.
The following factors may therefore bring about change in mission statements:
i. Alteration of product/market/technology as a result of competitive pressures.
ii. Merger and Acquisition- Merging of two corporate organisations would definitely require the mission statements of the two merging bodies to be re-formulated. While acquisition of a small firm by a bigger one would require the bigger company to re-formulate its mission especially where the acquired firm’s product/market/technology differ substantially.
iii. Change in government regulations- if it becomes illegal to continue to carry on such business by government regulation, firms affected must re-define their vision and mission.
If it is an international business and there is diplomatic breakdown that possibly result into war, this also calls for new business which will lead to revisiting the mission statement.
Components of Mission Statement
What should be contained in the mission statement of the various organisations? Usually the components of the mission statements depend on the type of organisation. Bian and Scott (1962) identify four major types of organisation according to the group that receive the greatest benefit from their existence.
The classification scheme is based essentially on their mission, they are:-
i. The business concern or for-profit organisation- which benefits its owners (and it might be added, the employees and others who transact business with it).
ii. The mutual benefits association- which benefits the members themselves e.g. Union or club.
iii. The service organisation which benefits its clients.
iv. The commonwealth organisation- which benefits society in general.
The nature of business determines the contents of the mission statement; hence differences in missions would also result in strategies adaptation.
David (1989) in a study in the United States of America identified nine components of mission statements.
In a recent research by the writer (yet to be published) among the Nigerian Bank’s mission statement identified nineteen different components of mission statements.
There is no rule as to what and what should constitute the components of a mission statement, the content of each mission statement’s would reflect the uniqueness of the organisation concerned.
Although Pearce II and David (1987) found that successful organisations mission statements were more comprehensive than those of the less successful firms which tend to focus on sample product/market; while Prehald and Doz (1987) suggest that companies should concentrated on short and concise statements of their strategic intent.
Whichever option taken, whether short and concise statement or a comprehensive statement, corporate mission should be well stated and religiously implemented.
Characteristic of a good mission statement
Kazmi (2004) for mission statement to be effective, it should possess the following seven characteristics.
i. It should be feasible
ii. It should be precise
iii. It should be clear
iv. It should be motivating
v. It should be distinctive
vi. It should indicate major components of strategy.
vii. It should indicate how objectives are to be accomplished.
If you study the mission statements very well you will not have to be told to have an idea of possible products of the organisations and the key stakeholders that are very critical to the organisations.