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Chapter 2, Vision, Mission and Values

• “If you don’t know where you are going, any road will take you there”anon

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Figure 2.1, The planning model

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Defining “Stakeholders” so a “Vision” can be written

• Figure 2.2

STAKEHOLDER RESPONSIBILITY AND ACCOUNTABILITY

Stockholders/Investors

To provide long term financial returns that fairly compensate investors for risks

CustomersTo provide high quality and safe products and services that represent fair value for the price paid.

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Defining “Stakeholders” so a “Vision” can be written

Employees

To provide a safe and nurturing workplace that fairly compensates people for the value they bring to the organization and to provide people with the opportunity to realize their personal potential.

Suppliers

To provide a professional relationship in contracting for and purchasing supplies and services, and a prompt completion of trade obligations.

CreditorsTo ensure that debts are secure and protected and that payment obligations are met promptly.

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Defining “Stakeholders” so a “Vision” can be written

CompetitorsTo observe fair business practices and to treat the competition as the business itself wishes to be treated.

Government

To adhere to the letter and intent of laws governing business practices such as fair competitive practices and anti-trust laws, and to honestly calculate and pay promptly all forms of taxes.

Local Community

To have employees involved in community initiatives, to employ people from the local community and to conduct business in the best interest of the liveability of the community

General Public

To participate in and contribute to society as a whole by assuming a fair proportion of the burden of government and society and by promoting the growth of the economic system.

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The vision statement should define:

• Who you are and what business you are in• What you provide to your customers, not

in terms of specific products, but more in terms of their experience

• How you provide your products and services

I wish to be viewed by my stakeholders as..

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Example vision statement for a Sporting Goods Store

• We are aggressive sporting goods retailers offering the ultimate shopping experience to our customers through leading edge distribution channels.

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Example vision statement for a City Management Team

• We strive to have the most appealing, livable and well managed city in Canada

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Example vision statement for a Dairy Farm

• Quality and freshness are the core of our business which involves providing the complete range of dairy products to wholesale markets.

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Developing the Mission Statement

Organizations develop mission statements because they want:

• To consolidate efforts around one purpose• To motivate the effective use of resources, both

financial and non-financial• To clearly define the planning path• To provide a framework for decision making and

control• To set expectations for results and outcomes• To establish a functional organizational tone and

climate

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Defining the Mission Statement

• The Mission Statement should define:– Products and services provided– Customers that will be served– How the products and services will be

provided– The results that are expected

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Figure 2.3 Elements of a Mission Statement

• “What We Do, Who We Do It For, How We Do It and Why We Do It”.

  What is defined? Example

What we do

defines the primary product or service

We sell real estateWe manufacture and sell professional quality camerasWe harvest, process, and distribute wood products

Who we do it

for

defines the customers and the market, who the customers are and where they are located

To customers from world-wide sources who wish to locate in VancouverTo customers in every city of the worldTo wholesale distributors in western Canada

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Elements of a Mission Statement

How we do it

defines the principle technologies used, the ethics and business principles and the organizational philosophies

By employing the highest ethical principlesBy treating every customer with respectBy utilizing e-commerce to its fullest potentialBy valuing employees, their diversity and their contribution to the organizationBy remaining committed to continuous growth in new markets

Why we do it

Defines the results expected from a variety of dimensions

Which will maximize the financial value of the organization for stockholdersWhich will minimize the impact of operations on the natural environmentWhich will ensure a solid foundation of satisfied customers for years to comeWhich will maintain our position as leading edge service providers

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Example Sporting Goods Store

• To provide high quality, leading edge sports equipment and clothing to the aggressive North American sports enthusiast in a convenient, dynamic and service friendly environment that will create a loyal and satisfied customer base, which will ensure the long term prosperity of the company.

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Example City Management Team

• To protect and enhance the economic and social well being of the city for generations to come by engaging in responsible decision-making, being fiscally accountable, striving for excellence in program and service delivery and consulting openly with community stakeholders on every aspect of our business. We are, above all else, committed to maximizing the satisfaction of taxpayers in our city.

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Example Dairy Farm

• To create a long range financially stable organization by effectively using technologies that minimize operating costs and maximize product quality and availability to the local wholesale market while at the same time exploring revenue opportunities outside of the local market.

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Developing Values

• Figure 2.4 Examples of Organizational Values  EXAMPLE

How employees will be treated and how they will treat each

other

Employees will be recognized for the contribution they make to our successEmployees will be provided with opportunities for advancement based on skill and commitmentWherever possible promotion will occur from withinWe care for and respect the rights of our fellow employees

How customers and

stakeholders will be treated

We ensure that our customer’s positive experience is a priority in every encounterWe will be consultative in our dealings with stakeholders and we will listen to their viewsWe will make every effort to operate in the best interest of all stakeholders

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Examples of Values

Which values people will use to govern how

they work

We will be open with each other so that petty differences don’t go unresolvedWe will strive to keep our work funWe will challenge what does not make senseWe will be open and receptive to the views of subordinates and superiorsWe will be willing to try everything that makes sense

How the values will relate to

organizational success

We will constantly strive to enhance the efficiency and effectiveness of our organizationWe will nurture and develop our shared values for the benefit of the organization

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MISSION, VISION AND VALUES, - Where to from here?

• Using the Vision, Mission and Values we must now create implementation plans that deliver measurable results so that we can become a dynamic and proactive organization that will take advantage of opportunities and effectively deal with the challenges that the future has to offer.