Mission, Vision and Setting Strategic Objectives

Mission and Vision Statements

• A visionary statement concerning the (long term) future direction of the firms, its products, markets and values. • Essential purpose of the organization

Mission Statements• Often summarizes the firms reason for

existing• The starting point for recognizing the future

direction of the firm and therefore the required strategic developments.• Should be:• Simple, Easily Remembered, Impactful• Positive, visionary & motivating

• Should outline• Firm’s role• What it wishes to achieve

Nine Elements in the Mission Statement

1. Function2. Target Consumers3. Target Region4. Values5. Technology6. Employees7. Strategic Positioning8. Financial Objectives9. Image

Function

• The mission statement needs to include some description of the function of the business. For example, "to promote industrial excellence," tells customers and employees nothing. A more effective description would be "To provide management consulting services."

Target Consumers

• An effective mission statement sets out, in broad terms, the target market. A manufacturer that makes nuts and bolts might set its target market as retail hardware stores, machine manufacturers, or both.

Target Region

• The business must determine what region it serves best and relay that information by way of the mission statement. A garage, for example, might limit its target region to the community while a magazine company might target an entire country.

Values

• Mission statements typically include a statement of company values. Values such as customer service, efficiency and eco-consciousness often appear on lists of company values. At their best, company values should express principles the company explicitly tries to affirm in day-to-day operations.

Technology

• For businesses that rely heavily on technology, the mission statement should include a description of the essential technology the company does or plans to employ. If nothing else, this directs purchasing agents toward the appropriate vendors for goods and services.

Employees

• Every company has a policy regarding its relationship with employees. A mission statement provides an opportunity to describe that policy in brief so employees know the essentials of where they stand.

Image

• Like people, companies develop public images. Careful companies craft the public image they want to establish and lay out the major features of it in the mission statement. This helps managers direct employees that stray from the sanctioned public image.

Strategic Positioning

• Effective mission statements also include a brief description of the business's strategic position within the market. For example, the company might excel at serving residential clients and seek to maximize that strategic advantage.

Financial Objectives

• A start-up company might set one of its financial objectives as making an initial public offering of common stock within two years. This lets the employees and potential investors know the company intends to go public, with all of the legal and record keeping ramifications that entails.

Vision Statements

• Describes management’s aspirations for the future and delineates the company’s strategic course and long-term decisions

Key Elements of a Strategic Vision• Provides a panoramic view of “where

we are going”• Is distinctive and specific to a

particular organization• Avoids use of generic language

that is dull and that could apply to most any company

Characteristics of Effectively Worded Vision Statements• Graphic—Paints a picture of the kind

of company that management is trying to create• Directional—Is forward looking• Focused—Is specific enough to

provide guidance in decision making• Flexible—Is not so focused that it

makes it difficult to adjust to change

• Feasible—Is within the real of what is possible

• Desirable—Indicates why the directional path makes sense

• Easy to Communicate—Can be explained in simple terms

Example of a Strategic Vision

“Provide a global trading platform where practically anyone can trade practically anything.”

Mission-Vision Statement of DLSAU

Setting Strategic Objectives

Purpose of setting objectives

• Converts vision into specific performance targets

• Creates yardsticks to track performance

Well-stated objectives are• Quantifiable• Measurable• Contain a deadline for achievement