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CONTENT: Introduction
Personal aspiration
Organizational aspiration
Aspiration and strategy
Framework for analyzing aspiration
Aspiration and business performance
Using aspirations
Setting aspiration
Mission
Vision
Values
Aspirations and brands
Aspirations and the strategy process
Perils of the misuse of aspirations
conclusion
A hope or ambition of achieving something Personal aspiration Organizational aspirationConnection between individuals motivation & behavior and organizational strategies
MISSION a purpose
VISIONA desired future
VALUES
,Why we exist
What is important to usWhat future we want to create
MISSIONS:
George Orewell, an animal farmer:“Making political writing in to an art”.
Patagonia:“Build the best product, cause no unnecessary harm and use business to inspire and implement solutions to the environmental crises.”
VISIONS:
Martin Luther King:“I have a dream that my four children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character”.
Henry Ford:I will build the motor car for the great multitude, it will be so low in price that no man making good wages will be unable to own one and to enjoy with his family the blessing of hour of pleasure GODs great open spaces..when I’m through everyone will be able to afford one and everyone will have one
Henry Ford:“I will build the motor car for the great multitude, it will be so low in price that no man making good wages will be unable to own one and to enjoy with his family the blessing of hour of pleasure GOD’s great open spaces. when I’m through everyone will be able to afford one and everyone will have one”.
VALUES:
Evelyn Hall:
“I disapprove of what you say , but I will defend to the death your right to say it.”
Mark Zuckerberg:
“Hackers try to build the best services over the long term by quickly releasing
and learning from smaller iterations rather than trying to get everything right all
at once . We have the words Done is better than perfect painted on our walls.”
An aspiration is a pre-requisite for a strategy.
Organizational Aspirations provide the motivation.
Organizational Aspiration emphasize the strategy.
Organizational Aspirations provided both.
Aspirations provide a valuable complement to strategy.
Patagonias aspiration is both “motivational and strategic”.
Fords aspiration is “strategic”.
ASPIRATION:
Strategy:
It is an integrated set of choices that positions the business in its industry so as to create superior financial returns over the long run”
An aspiration that is strategic will reflect some of the high levels choices the organization has made about how to compete , but it will rarely articulate the detailed strategy. If an aspiration does not contain any information about how the organization chooses to compete, it will not strategic”.
Aspiration is an important part of strategy.
Aspiration is useful when:
Shared by employees and when they complement a carefully developed strategy based on understanding of the business environment.
Aspiration is useless when:
It is poorly crafted like Enron ’s
PERSONAL ASPIRATIONS
Individual purpose is based on intrinsic desires or motivation based on deep motivation. It can be built in not by imposing.
ORGANIZATIONAL ASPIRATION:
A business is not defined by its name, status or articles of incorporation . It is defined by the business mission . Only a clear definition of the mission and the purpose for the organization makes possible clear and realistic business objective.”
It is set by managers
O.S comprised of vision, mission and values
Mission: Fundamental reason for the organizational existence
David collis and Michael rukstad:
“spells out the underlying motivation for being in business in the first place-the contribution to society that the firms aspires to nake”
Vision: It is a specific direction and a picture of intended future after getting the mission
Values: It will reflect on organizational culture.
It is all about what is important for the organization about how it conducts it self as it persues its mission and works to achieve its vision and describes the behaviors that are rewarded.
align results
not align results
results
Employees aspiration
organization MOTIVATION
Employers aspiration
organizationLose
motivation
Organizations will move towards EXTRINSIC MOTIVATION i.e pay, promotion,recoginition, incentives etc
WHY ORGANIZATION NEED ASPIRATION?
Non profit organizations can not express their purpose in financial terms.
Greenpeace:
“non-violent, creative confrontation to expose global environmental problems and force solutions for a green and a peaceful future”
Profit organizations express their prpose to maximize profit or long-term share holder value.
Milton friedmon:
“there is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game ,which is to say, engages in open and free competition without deception or fraud”.
Aspiration and Strategy:
Aspiration Strategy
People, with their motivation, direction, Purpose.
Questions Address: Why do we
exist? What future are
we trying to create?
What is important to us?
Concerned with competition
Question Address: How will we
position ourselves in our industry to achieve returns superior to our competitors.
A Framework for Analyzing Aspirations:
Coherent
Motivational and strategicMotivational
Strategic (Head)
Moti
vati
on
al (h
eart
)
Aspiration specify sufficient choices about how to compete and guide all other choices and decisions
Every employees personal aspiration must align with organization's aspiration
No AlignmentNo choices specify
ASPIRATIONS AND BUSINESS PERFORMANCE:
Framework about business performance and Aspiration impact
Jim Collins and Jerry Porras in their book Built to Last said “the fundamental distinguishing characteristic of the most enduring and successful corporations is that they preserve a cherished core ideology while simultaneously stimulating progress and change in everything that is not part of their core ideology.”
well-crafted organizational aspirations have multiple benefits:
• They establish boundary conditions for strategy decisions.
• They provide a stable purpose to guide the organization through changing times.
• They help with coordination.
• They communicate to stakeholders.
USING ASPIRATIONS:
Patagonia
Environmental mission
Reduce, Repair, Reuse, Recycle and Reimagine
Tesla Motors
• Aspirations:
• Intention of business
• Translated through mission and vision of the company
• Aspiration frames strategy and both compliment each other
• Strategy without an aspiration is vague
Aspiration – Jack Welch and GE
Says; mission requires companies to make choices about people, investment and other resources and forces companies to delineate their strength and weaknesses in order to access where they can profitably play.
Jack Welch says;
“We want to be the most competitive enterprise in the world by being No. 1 or No. 2 and this is the vision of the company and this aspiration is very specific there should be no doubt about it”
Lou Gerstner and the turnaround of IBM
ELEMENTS OF VISION:• Keep company together and not spin off the pieces
• Reinvest in the mainframe
• Turn company into a market-driven rather than an internally focused, process-driven enterprise
Gerstner’s choice was strategic since it represented how to compete in the market.
He says:
We never lose sight of our strategic vision
SETTING ASPIRATION: CHARACTERISTICS OF ASPIRATION:
• Motivational and strategic
• Coherent, consistent and reinforcing
There must be:
• Shared sense of mission,
• Shared vision,
• Set of shared values
• Leadership
• Culture, consistent with organizational aspiration
•
• Communicate aspirations to all the employees and articulate them
• Aspirations should be both motivational and strategic
• Should be consistent with the mission, vision and the value of the company
• Should fit with business model, culture of the organization
ASPIRATIONS AND BRAND:
• Aspirations should be inspiring
• Motivate employees
• Inclined customers towards company’s brand, since brands communicate what the company stands for.
ASPIRATIONS AND BRAND COKE:
Coke’s mission is consistent with its brand:
• To refresh the world
• To inspire moments of optimism
• To create vale and make difference
ASPIRATIONS AND BRAND DISNEY:
Mission statement says:
We create happiness by providing the finest in the entertainment to people of all ages, everywhere
To stay consistent with their mission, Disney developed 3 basic guidelines:
• No bad language
• No uncomfortable situations
• No gratuitous violence
ANALYZE THE ENVIRONMNET
DECIDE ON POSITIONING
BUILD OUT THE BUSINESS MODEL
TRACK PROGRESS AND REFINE OR
REVISIT
ASPIRATIONS AND STRATEG PROCESS:
ASPIRATION AND STRATEGY PROCESS:
Many companies use top-down strategy development process that encompasses of the following 4 steps process:
1. What business are we in and why? (Mission, Vision and values)
2. Where are we going? (Strategic goals)
3. What are the key issues that our strategy must address? (Strategic analysis)
4. How can we best compete? (Strategy formulation)
PERILS OF MISUSE OF STRATEGY:
1. Confusing a mission statement with a sense of mission
2. Confusing aspiration with strategy
3. Assuming that visions are self-fulfilling
4. Developing cookie-cutter aspirations
5. Using aspirations as public relations
6. Creating conflict between aspirations and financial objectives