Development of an Organizational Vision

Contents [hide] 1 Basic Information of Demystifying the Development of an Organizational Vision 2 Case Summary of Demystifying the Development of an Organizational Vision 3 Case Analysis of Demystifying the Development of an Organizational Vision 4 External Link of Demystifying the Development of an Organizational Vision 5 Relevent File Cabinet of Demystifying the Development of an Organizational Vision 6 Article Purchase Link of Demystifying the Development of an Organizational Vision

Basic Information of Demystifying the Development of an Organizational Vision

Author: Mark Lipton
Publisher: HBR
Case Number: SMR021
Publication Date: Jul 1, 1996
Course Category: Management

Case Summary of Demystifying the Development of an Organizational Vision

Why bother with a vision
• It enhances a wide range of performance measures
• It promotes change
• It provides the basis for a strategic plan
• It motivates individuals and helps to recruit talent
• It helps keep decision making in context

What is a vision
• It paints a picture for the organization. It is future focused but in the present tense, as if it were achievable now
• Vision statements aren’t necessary but they have two benefits:
    o Simplifies the planning phase for defining the vision
    o Becomes like a constitution, reduces uncertainty

Vision = Mission + Strategy + Culture
• Mission:
   o Addresses the fundamental question of why an organization exists or why it is in business
   o Many mission statements start by identifying stakeholders and their expectations
   o Rare for mission to include profit
• Strategy
   o Gives the operational logic for what the company hopes to accomplish
• Culture
   o Organizational culture is usually missing in mission statement, which is why vision needs both
   o “It’s not something you do by writing memos. You’ve got to appeal to people’s emotions. They’ve got to buy in with their hearts and their bellies, not just their minds.”

Why visions fail
• Senior management’s behavior is inconsistent with vision
• Irrelevance of the vision
• Companies expect a vision statement to solve all of their problems
• Visions that are too constrained
• Visions that are unrealistic
• Visions that are too abstract or concrete
• Management lacking creativity in formulating vision (using ‘templates’ from published management processes)
• Management imposing vision without getting any input from the rest of the company
• Complacency: not doing anything constructive towards vision because it is viewed as something of the future