Visionary Goals

are the lofty objectives (highmoral quality) that the firm's management decides to pursue. Vision describes some milestone that the firm will reach in the future and may require a decade or more to achieve. In contrast to the core ideology that the firm discovers, visionary goals are selected.

These visionary goals are longer term and more challenging than strategic or tactical goals. There may be only a 50% chance of realizing the vision, but the firm must believe that it can do so. Collins and Porras describe these lofty objectives as "Big, Hairy, Audacious Goals." These goals should be challenging enough so that people nearly gasp when they learn of them and realize the effort that will be required to reach them.

Most visionary goals fall into one of the following categories:

• Target – quantitative or qualitative goals such as a sales target or Ford's goal to "democratize

the automobile".

• Common enemy – centered on overtaking a specific firm such as the 1950's goal of Philip–

Morris to displace RJR.

• Role model – to become like another firm in a different industry or market. For example, a

cycling accessories firm might strive to become "the Nike of the cycling industry."

• Internal transformation – especially appropriate for very large corporations. For example, GE

set the goal of becoming number one or number two in every market

it serves.

The most successful company missions are measurable, definable, and actionable project statements with emotional appeal that everyone knows and can act upon. For example, a mission to "be the best health–care provider in the world" for a multi–national HMO sounds good. But a simple mission statement from Honda — "beat GM!" — is better because it's a project statement that can be measured every day by every employee. Mission statements can also affect company strategies and tactics. If Honda Motors were to change its mission to "Beat Toyota," different strategies would be called for, along with different geographic tactics in sales, advertising, and distribution of cars.

Organizational goals and plans

A goal is a future target or end result that an organization wishes to achieve. A plan is the means devised for attempting to reach a goal.

The setting of goals and developing of plans leads to goal attainment and to organizational efficiency and effectiveness. Goals must satisfy the next requirements: goals should be clear, concise, and quantified when possible. At the same time they should be dynamic and reevaluated as the environment and opportunities change. Goals differ according to organizational level. Organizations typically have three levels of goals: strategic, tactical, and operational.

Strategic goals

are broadly defined targets or future end results carried out at the top levels of the organization. Such goals usually focus on long–range issues – 5 years or more in the future – relating to the organization as a whole.

Tactical goals

are targets or future end results set by middle management for specific departments or units. Tactical goals aim at intermediate–range issues – 1 to 5 years in the future. Goals at this level answer the question what must be done by various departments or units to achieve the results outlined in the strategic goals.

Operational goals

are targets or future end results set by lower management. Such goals orientate toward short–range issues –1 year or less. They address specific, measurable outcomes required from the lower levels.

The three levels of goals form a hierarchy of goals. Goals at each level are synchronized and not working against each other. Goals at various levels fit together to support a united effort geared to ultimately accomplishing organizational goals. So all goals at any level must be coordinated with, and subordinated to the goals of the next higher level.

Management by objectives (MBO) method allows organizations to facilitate the linking of goals and plans. MBO is a philosophy based on converting organizational goals into personal goals. In other words, MBO is the process through which specific goals are set collaboratively for the organization as a whole and every department or unit and individual within it.

Creating a workable company mission

How important is it to define your company's mission?

Consider a famous U.S. refrigerator manufacturer whose sales were growing only at the rate of new home–building during the 1950s. They undertook a years–long project to define whether they were in the business of building refrigerators to preserve food or in the business of food preservation. They decided they were in the business of food preservation, which got them eventually into new product and business areas such as artificial atmospheres (e.g. nitrogen for fresh fruit preservation, freeze–drying technologies) and increased their sales from hundreds of millions of dollars to several billion dollars by the 1980s.

A good mission statement provides vision and direction for the company for at least 10 to 20 years and should not have to be revised every few years with changes in the company's environment. But the company mission statement must be revised if it is no longer appropriate or has lost significance or relevance.

Mission statements can be difficult to write. Companies spend months and years attempting to clearly define the best mission statement for current circumstances. Companies that have a clear "vision," and management that can articulate it and communicate it to all employees, have the basis for a call–to–action mission statement.

A "call–to–action" mission statement provides key attributes that are often missing in other company mission statements:

• it elicits an emotional, motivational response in company employees;

• it is easily understood and can be transferred into individual action every day;

• it is a measurable, tangible goal;

• it is firmly rooted in the competitive environment in which the company operates.

A company's mission statement is also influenced by:

• company history and traditions;

• management preferences;

• distinctive competencies of the company;

• company resources;

• competitive strengths and weaknesses.

Study Kettleby Food's mission statement, evaluate it and express your point of view.

“To provide our customers with a range of finest quality ready meals, through commitment to innovation, service and value, in a mutually profitable relationship.

We will achieve this within a business culture of dignity and respect for our employees, facilities and long term partnerships with our suppliers.

The development of our staff will be critical to our success. Every opportunity will be taken to create an understanding of food and to maximise each individual's potential within the business.”

NB! However, the existence of a mission statement does not necessarily lead to a healthy and successful business. Businesses that have mission statements will say something along the lines of a commitment to its people, its customers and to seeking to improve quality or its commitment to the environment and so on. You will be unlikely to see a mission statement that says:

'We want to make as much money as possible and are going to screw our workers and our suppliers into the ground, and charge our customers, who we think are mainly low life chaps, as much as we can get away with, so that we make as much profit as we can. Oh and by the way, we don't give two figs for the environment, as far as we are concerned any problems with acid rain or global warming will be happening long after we are dead and buried.'

Here are ten questions you should answer before formulating your mission statement:

1. What problem(s) do you solve? What need(s) do you fulfill?

2. What do you sell? How do you make your money? What is your revenue model?

3. How are you unique from everyone else out there? What is your unique selling proposition?

4. Who will you sell to? What is your target market?

5. What are your economic/financial goals?

6. What are your social/community goals?

7. What type of company do you want to create? Are you a lifestyle or high potential company?

8. Where is the company going? What products/services/industries do you plan to venture into?

9. What is your five–year strategy? Do you want to sell internationally, build an online store, franchise your business, build certain partnerships, develop additional products?

10. Do you ever plan on selling the company or going public? What is your exit strategy?

Answer the questions using the information and vocabulary from the text above.

1. What is planning? Why is it considered to be one of the most effective management tools?

Planning is the process of deciding what we are going to do later, including when and how we are going to do it. It is one of the most effective management tools for reducing risks of business.

2. What does planning provide?

Planning also provides a means for actively involving personnel from all levels of the organization in the management of the organization.

3. What’s the recommended approach to managerial thinking for the planning process to produce a multitude of benefits?

Involvement in the planning process produces a multitude of benefits. Involvement also improves overall organizational morale and loyalty. The experience gained throughout the development of a plan requires managers to think in a future– and contingency–oriented manner.

4. What are the components of the overall planning process?

planning process consists of three major components. They are: MISSION, GOALS, PLANS.

5. What defines the basic purpose of the organization?

Mission is the broadest and highest level of goals. It defines the basic purpose of the organization and outlines why the organization exists.

6. What should a manager do if a core value is no longer appreciated (if the industry changes)?

7. Which categories do most visionary goals fall under? Explain what they mean.

Most visionary goals fall into one of the following categories:

• Target – quantitative or qualitative goals such as a sales target or Ford's goal to "democratize

the automobile".

• Common enemy – centered on overtaking a specific firm such as the 1950's goal of Philip–

Morris to displace RJR.

• Role model – to become like another firm in a different industry or market. For example, a

cycling accessories firm might strive to become "the Nike of the cycling industry."

• Internal transformation – especially appropriate for very large corporations. For example, GE

set the goal of becoming number one or number two in every market

it serves.

8. Should managers take into account the staff expectations when stating a core purpose?

9. How are company strategies related to its mission?

10. Why are good mission statements named call-to action ones?

11. What influences a company’s mission statement?

12. Why shouldn’t the profit motive be highlighted in the mission statement?