ORGANIZATION VISION AND VISIONARY

ORGANIZATIONS
Authored by: James C Collins
Jerry Porras

Presented by: Dhanush

Sonali
Ribhu
Arjun
Ankit
Saurabh
THE BASIC QUESTION IS WHAT
VISION DO YOU ASPIRE TO?

 The few truly great companies have

known for years- in some cases for over a
hundred years- the importance of having a
vision.

 Companies have decentralized.

 Pushed decisions out of HQs into

divisions, departments, flat organizations.
QUESTIONS?

 How to decentralize and at the same time

have coherent, coordinated effort?

 How can people in the far reaches of these

flatter organizations know where the co. is
heading?

 Answer-Vision, mission and purpose

statements.
DO WE NEED A FRAMEWORK?

 One CEO says : “ I’ve come to believe that

we need a vision to guide us, but I can’t
seem to get my hands on what vision is.
I’ve heard a lot of terms like mission,
purpose, values, strategic intent, but no
one has given me a satisfactory way of
looking at vision that will help me sort out
this morass of words and set a coherent
vision for my company. It’s really
frustrating.
SOME POOR STATEMENTS

 We provide our customers with retail

banking, real estate, finance and
corporate banking products which will
meet their credit, investment and security
needs.

 Thecompany is in the business of

applying micro-electronics and computer
technology into computer related
hardware and computer enhancing
services.
WHO SHOULD SET THE VISION?
 Not only CEO

 Each group should set its own vision-

consistent with over all group.
FRAMEWORK
2 major components
 Guiding Philosophy
 Tangible Image

 Guiding
Philosophy-Fundamental motivating
assumptions & principles, philosophy of life.

 Likea genetic code- must transcend the

founders
 EdHarness (President P&G) says: “It is the
consistency of principle and policy which gives us
direction.”

 Mostchallenging for companies to progress past

dependence on key individuals.

 Institutionalize
the core philosophy, preserve the
magical element.
CORE VALUES & BELIEFS:

 Basic
precepts about what is important in
business and life

 View of humanity, role in society- to be held

inviolate.
 Thomas J. Watson Jr., CEO IBM (1956) says: “Most
important single factor in corporate success is faithful
adherence to those beliefs.”
 Herman Miller Company’s set of core
beliefs, we believe in:
 Being a research and product driven company
 Good design in every aspect of our business
 Making a contribution to society
 Helping our people realize their full potential
 That profit is an outgrowth of making a
contribution.
MORE EXAMPLES
 Robert W. Johnson Jr. wrote in 1943: “J&J’s 1st
responsibility is to its customers, 2nd
responsibilities to its employees, 3rd to its
management, 4th to the community and 5th and
last responsibility is to its shareholders.”
 In 1930s practice of radio manufacturers to
misrepresent company financial health and
product benefits.
 Paul Galvin (founder Motorola) responded thus
“ Tell them the truth, first because it’s the right
thing to do and second they’ll find out anyway.”
CORE VALUES ABOUT
 People, (Marriot): See the good in people and try
to develop those qualities.

 Customers, (MIPS computers): Never stop

trying to meet a commitment. We’ve had
situations where we’ve lost money on verbal
commitments made by salespeople who didn’t
have the authority, but we’ve kept the
commitments.

 Products, (3M): The 11th commandment- Thou

shall not kill a new product idea.
STATEMENT OF PURPOSE
 ‘To make contribution to the world by
making tools for the mind that advance
human kind’ –Apple

 ‘To make people Happy’ -Disney world

 ‘Our purpose is to improve the quality of life

through innovative human therapeutics’ -
Celtrix Laboratories

 ‘To help leading corporations and

governments to be more successful’ -Mc
Kinesy & Company
FEATURES OF STATEMENT OF
PURPOSE
 ‘Outgrowth of organizations core values
and beliefs’.

 Able to ‘grab the soul’ of each organization

member

 Broad, fundamental, inspirational and

enduring

 Motivating factor to the employees of

organization
QUESTIONS TO ASK
 What would the world loose if the company
ceased to exist

 Why don’t we just shut the doors and sell off

all the assets

 Why do we want to dedicate our precious

creative energies to this company’s efforts

 What are the personal purposes we feel for our

on lives, and how can our united effort fit with
these
Essentials Avoidable
 The fundamental need  Avoid simple
the company serves to
mankind be articulated description of company
 Noble purpose of product lines and
company existence customers
should be recognized
and explicitly stated  Should not be very
 Should serve for at least specific
100 years
 Effective to demarcate
the customers with
same purpose and able
to retain the right
employees
MISSION
 Tangible

 Energizing

 Focused goal
 Crisp and Clear

 Engaging

 Challenging
EXAMPLE
“Achieving the goal , before this decade is
out, of landing a man on the moon and
returning him safely to earth”-

Now What ???????

APPROACHES
 Targeting
 NASA, Walmart(4 years, 1 Billion)

 Common Enemy
 Pepsi(Beat coke), Honda( Crush, Squash, Slaughter
Yamaha)
 Role Model
 Trammell Crow( to be the IBM of real
estate)

 Internal Transformation
 GE(In addition to the strength, resources
of a big company, which we have already
built, we are committed to developing the
sensitivity, the leanness, the simplicity and
agility of a small company. We want the
best of both..a big company/small company
hybrid)
VIVID DESCRIPTION
 Second element of tangible image
 Represents vibrant, engaging and specific
description
 Provokes emotions and excitement

 Painting a picture with words

 Essential to vividly describe goal

 Tentacles of ritual and bureaucracy

 Passion, emotion and conviction

NEED OF MISSION AND
PURPOSE
 Crisisof direction once mission is
accomplished
 Ford sticking doggedly to Model T
strategy
 NASA mission driven
PUTTING IT ALL TOGETHER
 Myth: Presence of charismatic leader
required
 Catalyze a clear and shared vision

 Build an organization with vision

Thank You