Company Vision
A vision is an inspiring statement that describes the future as you would like it to be. It is aspirational, but should be stated as if it existed today. It should describe a future state that is achievable and desirable to all. It creates an emotional pulling force toward the future. It should not contain specific numerical goals (that is handled in a company’s objectives), but rather should describe in vivid language what life is like for key company stakeholders, e.g., customers and guests, employees, shareholders, managers, owners.
The Mission Statement
• The mission statement is a concise sentence describing the essence of what we do. It provides a clear sense of purpose. • The statement should also give a sense of the firm’s uniqueness, its sustainable competitive advantage. • It should give everyone a sense of the company’s priorities. • In essence, the mission describes why the organization exist.
– NASA in the 60’s –
– NASA Now?
– JetBlue: “Bring humanity back to air travel.”
Mission Statement is Clear and Simple:
• We bring humanity back to air travel.
• Great service, great fishing and an experienced, professional staff. • Land, Peace, Bread.
• The mission of the infantry is to close with the enemy by means of fire and maneuver to defeat or capture him, or to repel his assault by fire, close combat, and counterattack.
Values
• This is an attempt to capture the basic philosophy of the institution.
• In the best case, all people within the organization are held accountable and rewarded based not just on performance, but also on adherence to values.
Value Statements:
• Capture the basic philosophy of the Company. • Affirm positive behaviors. • In the best case all people in the company are held accountable and rewarded based not solely on job performance (ability to do an assigned task), but equally on adherence to the values. • Behaviors are important, not values.
• Values must be translated into clear operating principles linked to behaviors. • Instead of saying ‘we value trust,’ tell people what to do in order to build trust. Managing for Values
People rated low in leadership and values – even if rated high for performance – have a risky future
when this tool is used to measure performance.
MISSION, VISION AND VALUE DRIVEN
DECISION MAKING PROCESS
The Arno Group, LLC
Management/Board
Identify Opportunities/
Solutions to Problems
Do not pursue
Do not pursue
No
No
Fit with Vision,
Mission, Values,
Strategy?
Staff, Guests, other
Trusted Advisors to
Company Identify
Opportunities/Solutions
to Problems
Business Case?
Yes
Yes
Bet the Company
Decision?
Yes
Senior Management/
Board Issue
Yes
No
Within Scope of Authority for
Staff to Decide in the Moment?
Management Decides Using
Management Tools Such as Portfolio
Management Approach and
Investment Decision Matrix
No
Yes
Staff Makes Decision and
Reports on Outcome/Limited or
No Follow‐Up
Investment Decision Matrix
Business Portfolio Mgmt. Matrix
High
High
Invest to gain
competitive
advantage
Strategic
Importance/
Future Growth
Prospects
Consider
Divesting
Invest to
retain
competitive
advantage
and profit
Invest based
on detailed
ROI and 7S
analysis
Fit With
Strategic
Intent
Manage for
maximum
profit
Abandon
Invest with
minimal
analysis
required
Review
Strategy or
Abandon
Low
Low
High
Low
Economic Value
High
Low
Profit Potential
Why do this work?
• Create alignment with all we do.
• Create an environment when we don’t worry about CYA but make sound decisions consistent with company vision, mission and values.
•Make Less Work for everyone by being clear on what is expected without having to say it.
•Become the best among customer’s choices.