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Strategic Management BHRM 31124 R.A.Ishanka Chathurani Lecturer (prob) Department of Human Resource Management Faculty of Commerce & Management Studies University of Kelaniya

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Page 1: Strategic+management+5

Strategic ManagementBHRM 31124

R.A.Ishanka ChathuraniLecturer (prob)Department of Human Resource ManagementFaculty of Commerce & Management StudiesUniversity of Kelaniya

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Vision, Mission, Goals and Objectives Learning outcomes

After completing of this topic, students should be able to,

◦ Describe the nature and role of vision, mission, goals and objectives in strategic management

◦ Identity the components of mission statement

◦ Discuss how clear vision and mission statements can be benefit other strategic management activities

◦ Evaluate mission statements in different organizations

◦ Develop good vision and mission statements

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What is vision? :- What do we want to become?

Foresight or power of seeingVision must focus on futureServe as a concrete foundation

for the organization Vision never change but it serves

as an enduring promise-remained fixed

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Vision

A strategic thinker should have a good vision for the future. This has three aspects. They are,◦What the business is now◦What it could be in the ideal world◦What the ideal world would be like

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Problems with vision It ignores real, practical problemsIt can generate into wishful

thinking

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Benefits of a visionA vision enhances a wide range

of performance measuresA vision promote changeA vision provides the basis for a

strategic planA vision motivates individuals

and facilitates the recruitment of talents

A vision helps keeping decision making in context

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Examples for Vision statements "All Sri Lankans seamlessly

connected with world-class information, communication and entertainment services.“ (Sri Lanka Telecom)

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Mission :- What is our business?Organizations basic function in

society, in terms of the products and services it produces for its clients’ (Mintzberg)

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Mission Statement

• Captures the essence of why the organization exists – Who we are, what we do • Explains the basic needs that you fulfill• Expresses the core values of the organization• Should be brief and to the point• Easy to understand• If possible, try to convey the unique nature of your organization and the role it plays that differentiates it from others

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Components of a of MissionCustomers – Who are the firm’s

customers?Products or services – What are the

firm’s major products or services?Markets – Geographically ,where does

the firm operating?Technology – Is the firm technologically

current?Concern for survival, growth and

profitability – Is the firm committed to growth and financial soundness?

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Cont…Components of a of Mission

Philosophy – What are the basic beliefs, values, aspirations and ethical priorities of the firm?

Self-concept – What is the firm’s distinctive competence or major competitive advantage?

Concern for public image – Is the firm responsive to social, community and environmental concern?

Concern for employees – Are employees a valuable asset of the firm?

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Characteristics of Mission Statement BrevityFlexibilityDistinctiveness

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The importance of missionValues and feelings are integral

elements of consumers’ buying decisions, as evidenced by advertising, branding and market research. Customers not only ask ‘What do you sell? But What do you stand for?

To motivate employeesMany firms take mission seriously in

strategic management

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Examples for Mission statements "Your trusted and proven partner

for innovative and exciting communication experiences delivered with passion, quality and commitment“

(Sri Lanka Telecom)

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Examples – Good and BadMission Statements

To Make People Happy

To Explore the Universe and Search for Life and to Inspire the Next Generation of Explorers

NASA

Walt Disney

Does a good job of expressing the core values of the organization. Also conveys unique qualities about the organization.

Too vague and and unclear. Need more descriptive information about what makes the organization special.

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Evaluating Mission StatementAn evaluation matrix of mission statement (An Example)

Organization

Components

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Goals• The intention behind decisions or actions, the states of mind that derive individuals or collectives of individuals called organizations to do what they do (Minzberg) •Describes a future end-state – desired outcome that is supportive of the mission and vision.• Shapes the way ahead in actionable terms.• Best applied where there are clear choices about the future.• Puts strategic focus into the organization – specific ownership of the goal should be assigned to someone within the organization.

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Cont….

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Examples of GoalsReorganize the entire organization for better responsiveness to customers

Reorganize the entire organization for better responsiveness to customers

We will partner with other businesses, industry leaders, and government agencies in order to better meet the needs of stakeholders across the entire value stream.

We will partner with other businesses, industry leaders, and government agencies in order to better meet the needs of stakeholders across the entire value stream.

Manage our resources with fiscal responsibility and efficiency through a single comprehensive process that is aligned to our strategic plan.

Manage our resources with fiscal responsibility and efficiency through a single comprehensive process that is aligned to our strategic plan.

Improve the quality and accuracy of service support information provided to our internal customers.

Improve the quality and accuracy of service support information provided to our internal customers.

Establish a means by which our decision making process is market and customer focus.

Establish a means by which our decision making process is market and customer focus.

Maintain and enhance the physical conditions of our public facilities.Maintain and enhance the physical conditions of our public facilities.

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Goal CongruenceThe goals sets fro different parts

of the organization should be consistent with each other

Eg :-

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Objectives

Relevant - directly supports the goalCompels the organization into actionSpecific enough so we can quantify and

measure the resultsSimple and easy to understandRealistic and attainableConveys responsibility and ownershipAcceptable to those who must executeMay need several objectives to meet a

goal

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Objectives are

Specific

Measurable

Attainable

Results-oriented

Time –bounded

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Types of Objectives

1. Primary and Secondary objectives

2. Long term objectives and short term objectives

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Goals vs. Objectives

GOALS OBJECTIVES

Very short statement, few words

Longer statement, more descriptive

Broad in scope Narrow in scope

Directly relates to the Mission Statement

Indirectly relates to the Mission Statement

Covers long time period (such as 10 years)

Covers short time period (such 1 year budget cycle)

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Major Components of theStrategic Plan / Down to Action

Mission

Vision

Goals

Objectives

Measures

Why we exist

What we want to be

Indicators and Monitors of success

Desired level of performance and timelines

Planned Actions to Achieve Objectives

O1 O2

AI1 AI2 AI3

M1 M2 M3

T1 T1 T1

Specific outcomes expressed in measurable terms (NOT activities)

Strategic Plan

Action Plans

Evaluate Progress

Targets

Initiatives

What we must achieve to be successful

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- The End -