SG 7 Strategic Process - Vision. Mission and Values Flashcards
5 steps of the strategic process
Overall objective (or mandate) - vision/mission/values - strategy formulation - strategy implementation - performance management
Overall objective for profit organization
To maximize owner wealth, subject to constraint of maintaining relationships with key stakeholders
Overall objective for NFP
Maximize value to users or clients, subject to funding and maintaining relationships with suppliers, employees. community and others
Relationship of overall objective to strategic process
Broad based - use vision/mission/values to get formal guidance on how to get to ideal state of org
What is a vision statement?
A vivid description of where the org is going. It is future-oriented, meant to inspire and give direction to an internal audience. It describes an idealized future state.
How is a vision statement most effective?
When inspirational and memorable
What 3 questions can vision statements address?
- what would the world look like if we were successful?
- how do we add value?
- what are our ultimate goals?
Main purpose of vision statement
To motivate and inspire internal audience. Employees must believe the vision.
Does vision statement provide guidance on how to achieve the vision?
No
Describe what a mission statement is
A written declaration of an entity’s primary reason for existence. It may define the entity’s high-level goals regarding customers, employees and shareholders.
Are mission statements communicated to internal/external or both
Both
What are values statements?
They support mission and vision statements by identifying the core beliefs, principles and philosophies that are intended to influence the org culture. They encourage people to work together and tell customers, suppliers and other external stakeholders what behaviours toe xpect.
