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VISON STATEMENT EXERCISE CUM PRESENTATION

Name:_ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ __ _ _ __ Group: _ _ _ _
Section: _ _ _ _

Name of the company: _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ __ _ _ __

Web site address: _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ _ _ __ _ _ _ __ _ _ __

Market Capitalization: _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _(as on date. Find from a


suitable website)

This is an important guided practical exercise in vision building. It pertains to the


competency of creating a vision statement to fulfill the role of direction setting by
a leader.

This is an individual cum group exercise and would bear marks to be included in
your class participation, and the skill will be tested in mid and end term
examinations with significant weight. There are marks for the written work
individually and there are marks for the group for the presentation. Hence both
components are important. The overall marks will be your individual mark+group
mark divided by 2 and then the marks will be considered for evaluating your class
participation which would be not less than 20 percent of the class participation
marks but can higher in case of exceptional work.

Exercise Instruction: You must read the Collins and Porras Model (given in as two
different readings in the course pack) of vision statement and should follow it
strictly for this exercise. Following any other models, will not fetch any marks. This
handout clarifies the instructions given under the heading Session 5 and 6
Presentations in page 146 in your course pack. If there are any dichotomies
between that and this handout, this handout supersedes the course pack material.

Clarifications:

The two readings mentioned above might tend to create some confusion (some
former batch students have mentioned so). It is clarified that vision statements
have 1) core values, 2) core purpose, 3) Big Hairy Audacious Goal and 4) a vivid
description. In other words, you should find if the vision statement of companies
have all the four components. The confusion comes when people write the first
three and then add the fourth as vivid description. This is incorrect. Vivid description
means describing the first three vividly and not describing the first three and then
adding another component called vivid description.

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What are core values? If you see your course pack, page 148, we have given a
list of values by Rockech (terminal and instrumental values) and also by Schwartz.
Follow the Schwartz model as the values given in the table are more organization
oriented the values of terminal and instrumental by Rockeach is more individual
oriented. For example, the openness to change value with self-direction and
stimulation are highly organization oriented and individual oriented. Therefore it is
better to evaluate an organizations values from Schwartzs model. An organization
should have four to six values. If there are too many, it becomes too complicated
and no one knows what is core and what is not core.

Core Purposes. This is in fact a to be statement distinguished from to do


statement. In core purpose organizations tend to make statements such as to be
the most admired marketing company, to be known for innovative pharmaceutical
company, trusted name in retain investment, to be the flavor of coffee in India
and similar ones. There can be a bit of abstractness in this. It is quite acceptable.
The real test is to check whether they indicate the value proposition of the
business clearly. For example, if you are a coffee company, you can say flavor of
coffee. The acid test is what you aspire to be in the value proposition.

Big Hairy Audacious Goal. The tern Big Hairy is a US vestige. Kids in US used to
be told the stories of bear. A bear is a symbol of strength and audaciousness in the
US. So, the business authors have borrowed the big and hairy from this and called
the goal Big, Hairy, Audacious goal (BHAG) pronounced as Bee-haag. The crux of it
is that it is the specific stuff that you will do. It has to be SMART (specific,
measurable, attainable, realistic and time bound). Additionally, it has to be
audacious too. Audaciousness is a matter of probability. We consider something
audacious if the probability of achieving it is 70% (a guideline/guestimate). If it is
more probable, say 90% probably, it would be too easy and not audacious, and if
less, say, 40 percent, it may be too unrealistic. Let us now take an example and say
that the BHAG for TAPMI is to be within top ten ranking business schools in India by
2020. This can be considered a good BHAG because it is specific (within top 10),
measurable (from the ranking outputs), attainable and realistic (70% probability)
and time bound (year 2020). Similarly if the Tata group says to be a US $ 350
billion company by 2025, it may be also be a good BHAG because it is now more
than 100 billion, it grew from 8 billion to 100 billion between 2000 and 2015. So, a
70% growth would be at least 70% probable.

Method of Exercise.

1. Each individual has been allotted a company as per the list attached in S5E of
the handout (which has not been attached as hard copy but mailed). You are
required to evaluate the direction setting of the company allotted to you.
Evaluation should be done as per the method given below. Then meet in your
group and discuss which company would be a good one to bring out the

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lessons. Present the case as a group. Your presentation should be for about
10 minutes to include questions.

2. Direction setting is done through vision statement. A vision statement should:


be well communicated
have inspiration power
have Core values
have Core purposes
have a Big Hairy Audacious Goal
be Vividly described

The format of the exercise will take you through this process. The method is
intended to help you evaluate the direction setting of a company through a
protocol.

Well communicated. Let us take well communicated first. Since we are not
employees of an organization, we can only say that a vision is well communicated if
the vision is well articulated in the website of the company. It means that (follow the
guideline in the table below):

Pts Score granted


by you
1. On opening the website, there is a clear and 10
prominent link to the vision of the company. (if yes,
give 10, else 0)
2. If not, type typed vision in the search box of the web 8
site of the company, and the vision was displayed
immediately. (if yes, give 8, else 0)
3. I clicked various options such as about us and
reached the vision statement. I clicked ---- (state the
No of clicks in figure) before I was able to reach the
vision statement. (evaluate as per the guideline
below and write in the column opposite.
A. If 1 click 8 pts
B. If 2 clicks 7 pts
C. If 3 clicks 6 pts
D. If 4 clicks 5 pts
E. If 5 clicks 4 pts
F. If 6 clicks 3 pts
G. If 7 clicks 2 pts
H. If 8 clicks 1 pt
I. if 9 or more clicks 0 pt.

4. Your comment on the experience of finding the vision statement (round the
appropriate choice)
A. Exceptionally exciting experience
B. Very Exciting experience

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C. Exciting experience
D. Neutral
E. A little frustrating experience
F. Moderately frustrating experience
G. Highly frustrating experience.

Learning Point: This is a surrogate measure for pride in vision and


communication of the vision. If your company is proud of the vision
statement, they will announce it from roof top.

What is the vision statement? (Copy from the site and paste in the box below).
In case you could not find, state could not find the vision statement.

Vision Statement:

Your Comment: How inspiring is the vision statement? (round the


appropriate answer)

A. Exceptionally inspiring
B. Very inspiring
C. Inspiring
D. Neutral
E. Not very inspiring
F. Not inspiring
G. Not at all inspiring
If you found the vision statement inspiring, what words in the statement
inspired you? (State 3 words or terms that inspired you in order of their
priority)

1. Priority 1 (word/term) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_
2. Priority 2 (word/term) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_
3. Priority 3 (word/term) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_

If you did NOT find the vision statement neutral or not inspiring, what was
the reason for it? (Describe in brief)

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Learning point: The need to create a vision is self-explanatory. You need to focus on
doing so while making the vision of a company or a vertical or a team.

Core Values.

Are the core values a part of the vision statement ? 1. YES 2. NO (Round
the appropriate answer)

If NO, where is it given in the web site? _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


_______

What are the core values of the organization as given in the vision statement?
(narrate ditto from the web site)

1. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
__
2. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_
3. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
__
4. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
__

Learning Point: Core values are important to align people to your vision; whether of
the organization, vertical or a team. If the organization does not have the values
well-articulated, you will find it difficult to align your team. Remember that in a few
months from now, you will be a team leader of a nested team (a team that is part of
an organization) and would have to know the vision statement to align your teams
actions to the organizational goals.

Core Purpose

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Are the core purpose of the organization clearly a part of the vision statement? 1.
YES 2. NO (Round the appropriate answer)

If NO, where is it given in the web site? _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


_______

What is/are the core purpose of the organization as given in the vision statement?
(narrate ditto from the web site)

1. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_____
2. ________________________________________________
______
3. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___

Learning Point. Core purpose must be well articulated in the vision statement. It
gives the organization a direction to move.

Audacious Goal

Does the vision statement have audacious goals? 1. YES 2. NO (Round


the appropriate answer)

Does the audacious goals have a time frame? 1. YES 2. NO (Round the
appropriate answer)

The audacious goals and their probability of achievement: (Narrate this in


the table below from 1 to 4 and then record the probability of achieving using the
rating guide given below). Use the following standards to describe the probability of
achieving. Some companies may have more than one BHAG

1. 35 to 45 % probable to achieve the goal Highly impractical.


2. 46 to 55 % probable to achieve the goal Impractical.
3. 56 to 65% probable to achieve the goal Over audacious.
4. 66 to 75 % probable to achieve the goal Big Hairy Audacious
5. 76 to 85 % probable to achieve the goal Non-audacious.
6. 86 to 95 % probable to achieve the goal Highly non-audacious. .
7. Greater than 96 % probable to achieve the goal Very mundane.

S Audacious goal (as stated in the vision statement) or Probability of


No BHAG achieving in the
time frame (Use

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the standards such
as highly
impractical, over
audacious etc.
given above.
1. E.g. Top ten business school by 2010 Big Hairy
Audacious
2.

3.

4.

Learning point: Goals that have a probability of achieving should be Big Hairy
Audacious. Only then it will be challenging. Evaluate from current strength of the
company, how it has grown so far while making this assessment in relation to the
goals specified. For example, Tata group grew from 8 billion to 100 billion between
2000 and 2015. It plans to reach 350 billion by 2025. You could give it at least a
70% chance.

Vivid Description

How vivid is the description?

A. Exceptionally Vivid
B. Very vivid
C. Vivid
D. Neutral
E. Not very vivid
F. Not vivid
G. Not at all vivid

Your Recommendation:

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What is the modification you suggest in the vision statement? Specify the statement
you recommend

Option 1 :

Justification for the recommendation:

Option 2:

Justification for the recommendation

Note: If you recommend no change, you should justify why you make such
a recommendation in the space below

If you make a recommendation that no change is required, justify the


same in the space below:

Learning point: You should able to create a visions statement at organizational,


vertical or team level to inspire and align the people. This exercise hones your skill
for it.

Note: You might like to keep a copy of this as it can help you to create a new vision
statement in the place of your work.

Clarification #1 sent to 2016 batch

Dear all,

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Many of you have been asking me about the vision exercise to be submitted for
BLDR. I have the following comments which might help you.

1 Do not expect a good existing vision statement in most cases. That is why we
have embarked on this exercise. I have perused most companies before
sending them to you though they are from the NIFTY 500.

2 Ideally you should be able to roll in the core values, core purpose and the
audacious goal into one sentence or at best a second sentence. I think the
length should be at best four lines.

3 It is normal to find vague statements such as most admired company, best in


everything, achieve excellence etc.. You need to rectify these anomalies.
That is the task in this exercise.

4 For example if your company is a zinc manufacturing company and they that
their vision is to be the largest admired zinc manufacturer company, then
there is problem which you need to address. Here the core purpose is to be
largest zinc manufacturing company. This is vague. Make it more specific and
inspiring by stating largest Indian (south Asian, Global) zinc manufacturing
company by revenue by 2020 (This rolls the core purpose and audacious goal
into one.

5 What about the core values. Read on the company and see what they want to
be admired for; say innovation, production efficiency, change, job security,
workplace fun etc. (Pick up three or four core values from the Schwartzs
values. In the handout mailed, these are given. Schwartzs value model is
well researched in 154 countries. Trust in it. It gives five dimensions as given
below. For example, Openness to change is a dimension. Under this there are
self-direction and stimulation. These are two indicative values. You can
always find the synonymous of stimulation and use other words. The
dimensions are openness to change, conservation, self-enhancement, self-
transcendence and hedonism. If you observe it closely, you will see that
openness to change and conservation are opposite values and self-
enhancement and self-transcendence are opposite (individual focus vs. focus
on the larger purpose).

I Openness to change
a Self direction, Stimulation
II Conservation
a Security, conformity, tradition
III Self enhancement
a Achievement, Power
IV Self-transcendence

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a Benevolence, Universalism, sustainability,
environmentally responsible, social resposibiltiy
V Hedonism

6 So, the zinc company may say that they should be admired for self-directed,
achievement oriented, sustainable company with fun in work place. It is
prudent to note that you are admired for your values (at least usually it is so).
For example, the Tata is admired for values and Reliance may be admired for
the value of aggressiveness (stimulation and achievement) and so on.

7 Now you can reframe the visions something like this to be Indias largest
zinc manufacturing company by revenue and be admired for innovations,
aggressiveness, sustainable and safe practices by 2030. In this statement.
This VS has about 22 to 25 words, will surely come in three or four lines. The
Yellow portion is the core purpose. The green ones are the core values and
the violet indicates the audacious goal. This vision has a clear message for
the employees, investors, suppliers, customers, prospective employees,
society and the nation as such. This vision shows that the company knows
that it has to invest in innovation, recruit create people, grow aggressively,
ensure sustainable and safe practices in manufacturing, have no pollution
(sustainable).

8 You may need to do a little research. Suppose the company is already Indias
largest zinc company by revenue then, it is not audacious. After your
research, you can perhaps make it the largest in South Asia or Asia Pacific
etc.

9 The next doubt that many have is that what you restate will be what you
write and NOT what the company states. This is true. This is your
recommendation and hence surely it is your words and NOT that of the
company. This how you learn to evaluate and make a strong
recommendation. I might actually send some of the well revised version to
the company for their evaluation with your name tag as the author (if you
permit).

Kindly put your heart and soul into this exercise which can be invaluable
to you.

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