Unit I - Strategic Intent - Vision, Mission, Objectives & Goals
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Transcript of Unit I - Strategic Intent - Vision, Mission, Objectives & Goals
Strategic IntentStrategic IntentVision, Mission, Objectives Vision, Mission, Objectives
and Goalsand Goals
Strategic IntentStrategic Intent The word ‘intent’ in general means an anticipated outcome The word ‘intent’ in general means an anticipated outcome
that is intended or that guides our planned actions.that is intended or that guides our planned actions.
Strategic intent is the leveraging of firm’s internal resources, Strategic intent is the leveraging of firm’s internal resources, capabilities and core competencies to accomplish the firm’s capabilities and core competencies to accomplish the firm’s vision, mission and objectives in a competitive environment.vision, mission and objectives in a competitive environment.
It is all about winning competitive battles and gaining It is all about winning competitive battles and gaining leadership position by putting organizational resources to leadership position by putting organizational resources to best use.best use.
According to R Howard, According to R Howard, “strategic intent tries to establish the “strategic intent tries to establish the parameters that shape the values, motives and actions of parameters that shape the values, motives and actions of people throughout their organization.”people throughout their organization.”
Hierarchy of Strategic IntentHierarchy of Strategic Intent
Vision
Mission
Objectives
Goals
PlansMost Specific
Most Integrative
Fewest in Number
Greatest in Number
VisionVision Vision refers to an inspirational picture of a future Vision refers to an inspirational picture of a future
that can be created, offering clarity amidst that can be created, offering clarity amidst confusion, hope against despair, and unity of confusion, hope against despair, and unity of purpose amidst diversity of personal causes.purpose amidst diversity of personal causes.
Basic elements of a Vision:-Basic elements of a Vision:-– An organization’s fundamental reason for existence An organization’s fundamental reason for existence
beyond just making moneybeyond just making money– Its timeless, unchanging core values.Its timeless, unchanging core values.– Huge and audacious but achievable aspirations for its Huge and audacious but achievable aspirations for its
future.future.
Examples of VisionExamples of Vision BHEL:- “A world class innovative, competitive and BHEL:- “A world class innovative, competitive and
profitable engineering enterprise providing total profitable engineering enterprise providing total business solutions.”business solutions.”
Colgate - Palmolive:- “To be the company of first Colgate - Palmolive:- “To be the company of first choice in oral and personal hygiene by choice in oral and personal hygiene by continuously caring for consumers and partners.”continuously caring for consumers and partners.”
NTPC:- “To make available, reliable and quality NTPC:- “To make available, reliable and quality power in increasingly large quantities.”power in increasingly large quantities.”
MissionMission Mission provides the fundamental philosophy that Mission provides the fundamental philosophy that
what is the firm in reality and what it wants to be.what is the firm in reality and what it wants to be. It clarifies the very purpose of the corporation.It clarifies the very purpose of the corporation. It also represents the corporation’s guiding principles.It also represents the corporation’s guiding principles. Pearce and Robinson say that “the company mission Pearce and Robinson say that “the company mission
is defined as the fundamental, unique purpose that is defined as the fundamental, unique purpose that sets a business apart from other firms of its type and sets a business apart from other firms of its type and identifies the scope of its operations in product and identifies the scope of its operations in product and market terms.”market terms.”
Hunger and Whalen have defined mission as Hunger and Whalen have defined mission as “purpose or reason for organization’s existence.”“purpose or reason for organization’s existence.”
Examples of MissionExamples of Mission Cadbury India:- “To attain leadership position in Cadbury India:- “To attain leadership position in
the confectionery market and achieve a strong the confectionery market and achieve a strong national presence in the food drinks sector.”national presence in the food drinks sector.”
Ranbaxy Laboratories:- “To become a research- Ranbaxy Laboratories:- “To become a research- based international pharmaceutical company.”based international pharmaceutical company.”
ONGC:- “To stimulate, continue and accelerate ONGC:- “To stimulate, continue and accelerate efforts to develop and maximize the contribution efforts to develop and maximize the contribution of the energy sector to the economy of the of the energy sector to the economy of the country.”country.”
Features of MissionFeatures of Mission Mission is the basic reason of existence and legitimization of an Mission is the basic reason of existence and legitimization of an
organization.organization. It is defined in terms of benefits which are provided by the firm It is defined in terms of benefits which are provided by the firm
to society.to society. It is defined from the outside of an organization.It is defined from the outside of an organization. It shows long-term commitment of an organization.It shows long-term commitment of an organization. It is dynamic and can be changed according to change in It is dynamic and can be changed according to change in
environment.environment. It is a fundamental work and responsibility which is given by It is a fundamental work and responsibility which is given by
society to an organization.society to an organization. It is very comprehensive term which is the basis of objectives It is very comprehensive term which is the basis of objectives
goals and strategies.goals and strategies. It shows philosophy, values, character and principles of an It shows philosophy, values, character and principles of an
organization.organization.
Qualities of MissionQualities of Mission FeasibleFeasible PrecisePrecise ClearClear MotivatingMotivating DistinctiveDistinctive SpecificSpecific DynamicDynamic Values, beliefs and philosophyValues, beliefs and philosophy
ObjectivesObjectives An objective indicates the result that the organization An objective indicates the result that the organization
expects to achieve in the long run.expects to achieve in the long run. It is an end result, the end point, something that you aim for It is an end result, the end point, something that you aim for
and try to reach.and try to reach. McFarland defines that “Objectives are the goals, aims or McFarland defines that “Objectives are the goals, aims or
purposes that organization wish to achieve over varying purposes that organization wish to achieve over varying period of time.”period of time.”
According to Glueck and Jauch , “Objectives are those ends According to Glueck and Jauch , “Objectives are those ends which the organization seeks to achieve through its existence which the organization seeks to achieve through its existence and operation.”and operation.”
Thus, it is clear that objectives are that requisite result which Thus, it is clear that objectives are that requisite result which an organization want to achieve in fix time duration. an organization want to achieve in fix time duration.
These are the end results which are explained in qualitative These are the end results which are explained in qualitative and quantitative form. Every organization’s members make and quantitative form. Every organization’s members make efforts to achieve them.efforts to achieve them.
Features of objectivesFeatures of objectives Objectives are that result which every organization Objectives are that result which every organization
and its member want to achieve together.and its member want to achieve together. They are based on organization’s mission and purpose.They are based on organization’s mission and purpose. They are related to future but which are determined in They are related to future but which are determined in
present.present. They are determined not only for an organization but They are determined not only for an organization but
also for every part (department, employees etc.) of an also for every part (department, employees etc.) of an organization.organization.
They have certain time duration.They have certain time duration. They are inter-related. They are inter-related. They remain according to organization hierarchy.They remain according to organization hierarchy.
Classification of objectivesClassification of objectives Primary ObjectivesPrimary Objectives Secondary ObjectivesSecondary Objectives Short-term ObjectivesShort-term Objectives Long-term ObjectivesLong-term Objectives Equilibrium ObjectivesEquilibrium Objectives Improvement ObjectivesImprovement Objectives Individual ObjectivesIndividual Objectives Social ObjectivesSocial Objectives Performance ObjectivesPerformance Objectives Official ObjectivesOfficial Objectives
GoalsGoals Goals are those basic plans that directs final results of Goals are those basic plans that directs final results of
projected action of any unit. Every organization has projected action of any unit. Every organization has multiple goals that can be personal, organizational, or multiple goals that can be personal, organizational, or can be on official level. can be on official level.
According to Peter Brian Quinn, “goals state what is to According to Peter Brian Quinn, “goals state what is to be achieved and when results are to be accomplished.”be achieved and when results are to be accomplished.”
According to Ansoff, “Goals have the following features, According to Ansoff, “Goals have the following features, they (i) are derived from objectives, (ii) offer a standard they (i) are derived from objectives, (ii) offer a standard for measuring performance, (iii) are expressed in for measuring performance, (iii) are expressed in concrete term, (iv) are time-bound and work-oriented. concrete term, (iv) are time-bound and work-oriented.
Importance of goal settingImportance of goal setting Help in decision makingHelp in decision making It gives base to a company for long It gives base to a company for long
term existenceterm existence StabilityStability Provide guidelinesProvide guidelines Support in control.Support in control. Define responsibiltyDefine responsibilty
Vision, Mission, Objectives and Vision, Mission, Objectives and Goals: Mutual relationshipGoals: Mutual relationship
Vision
Mission
Objectives
Goals
Contribute at societal level
At enterprise level
At top management level
At corporate and strategic Business Unit level