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MT2 Vision, Mission, Values, Strategy, and Strategic Purpose and Coherence

Defining Vision and Mission

Establishing a mission and vision statement are, in my opinion, foundational components to the success of an organization. So much of our studies in the program have focused on setting a clear vision and mission. We’ve done this for every course with our team members as outlined in each group work plan and it is easy to see the importance. Vision gives stakeholders an understanding of what the company is working towards. A mission is the purpose of the company, why it exists and why it’s valuable.

According to Thompson and Strickland (1992, as cited by Darbi, 2012), mission statements are antecedents to strategy formulation. This brings me back to my opinion on vision and mission being foundational tools to strategy formulation. Some companies do a better job than others at defining a clear and effective vision and mission statement. The more we understand the purpose behind these statements, the better off we are in developing a strategic plan for meeting objectives.

What should vision and mission statements encompass

Though vision and mission statements are not strategies, they do help to plan for strategies. According to Carpenter and Sanders, vision and mission statements are key to an organization’s identity (2008). Vision and mission tell stakeholders what the organization is about and what it aims to do. One of the interesting elements of vision are its use of ambition and ambiguity. I knew visions have an ambitious undertone, but had never considered the ambiguity behind them. Carpenter and Sanders (2008) point out that the ambiguity in visions allow it the flexibility to change tactics or strategies when things don’t go as planned (p. 45). I worked at an organization whose vision was over 40 words that didn’t really flow. To be honest, at the time I wasn’t sure if we had one because it didn’t seem like somethings we emphasized much on a daily basis. I believe visions should be clear and instilled in every employee.

As important as vision, mission statements should also be ingrained in every employee. The text states that mission should be internalized so that when employees make decisions, they do so with the objectives and values of the company in mind. Furthermore, according to Collins, Rukstad, David and Powers, mission statements play a critical role in establishing objectives and formulating strategies (As cited in David, David, & David, 2014, p. 96).

Why vision and mission statements are not substitutes for strategy

Vision and mission statements are not substitutes for strategy because they aren’t strategies. I mentioned earlier that it was difficult to find the vision and mission statements for a previous employer of mine. Likewise, companies whose vision is irrelevant or not really a working vision statement can often lead employees to reject it and if employees are not internalizing those concepts or core values, how can they make decisions with the company’s best interest in mind? Vision and mission statements provide employees with an overall picture of what the company wants to achieve and what it stands for. The strategic formulation and implementation process are what ultimately carries out the goal of vision and mission statements.

Why are goals and objectives important

Goals and objectives are important for a number of reasons. The first, being obvious, that goals and objectives give people something to strive towards. The text defines goals as an organization’s intentions and objectives as how the company plans to get there (Carpenter & Sanders, 2008). Though I think those are good working definitions for goals and objectives, I also think it is fitting to add that they are benchmarks. Goals and objectives are benchmarks for companies to assess where they are in relation to their competition. Any business is in competition with someone and you want to know who they are and how you fare against them. During this process, companies are also able to assess how they rack up with consumers and stakeholders. Of course, I think it would be best if these goals and objectives were carefully formulated to include important players like stakeholders, consumers, and competition. Again, this is where vision and mission statements play a key role because they provide logic for strategizing to ensure these goals and objectives are met. Things can change and often do, but when that happens, it is pertinent that the vision and mission statements are clear and strong so that when goals or objectives change, new ones are still aligned with the company’s vision and mission when developing strategic plans.

Define strategic purpose and how it relates to your work organization or SSM company

Strategic purpose is when people agree on a sort of mental model of an organization and its future through all the changes (Carpenter & Sanders, 2008). In our firm., it is an underlying framework on which to build our strategies and adjust for changes. We noticed in our firm (SSM Company), that one of our vehicles In family class was doing really well, however, two other classes were not performing as well. Partly because the one of the regions it was in wasn’t selling as well as others. Since one of our objectives include increasing our sales across the board, we opted to pull funds from marketing in the region that wasn’t doing so well and invest that into the quality of our other vehicles. As a result, we increased the sales of our other classes and are still doing well on our biggest cash cow. Things are still a bit new as we navigate what to change and what reports we may need to run, but I think our firm has been doing well to stick to the objectives we set early on and going with a strategy that helps us achieve those objectives.

How does an organization achieve strategic coherence

Strategic coherence is when a firm’s objectives are logically consistent with its objectives and goals. The company’s core elements need to be in congruence with elements of the strategy diamond. This alignment ensures that all strategic procedures are being met and on track for reaching certain objectives. “Successful firms depend on dozens of critical elements operating in concert and in balance” (Carpenter & Sanders, 2008, p. 49). It is when strategic coherence in realized that companies can see the flow of the various functions in the organization. An important note here, is that strategic coherence can be measured by the strategy diamond framework. As mentioned in the text, there are internal and external perspectives that allow us to assess whether our firms act as a result of our mission and vision or in reaction to our competitors. Incoherence may force us to change strategy or adjust primarily in response to competition, however, things can go wrong if we are strategizing this way because it gives our competitors control over our strategic process. Strategic coherence allows us to stay in control of our environment, resources, and organization in that we strategize according to our vision and mission and not in reaction to our competitors. Considering our competitors is smart when strategizing, but allowing them to change our course of action for our goals and objectives all the time is when it gets out of hand and the incoherency is recognizable.

References

Carpenter, M.A. & Sanders, Wm., G. (2008). Strategic management: A dynamic perspective. Upper Saddle River, NJ: Pearson Prentice Hall.

Darbi, W.P.K. (2012). Of mission and vision statements and their potential impact on employee behavior and attitudes: The case of a public but profit-oriented tertiary institution. International Journal of Business and Social Science (3)14, 95-109. Retrieved from http://www.ijbssnet.com/journals/Vol_3_No_14_Speci…

David, M.E., David, F.R., & David, F.R. (2014). Mission statement theory and practice: A content analysis and new direction. International Journal of Business, Marketing, and Decisions Sciences 7(1), 95-109. Retrieved from http://strategyclub.com/wp-content/uploads/2014/09…