01 Building Co Vision[1]

8/8/2019 01 Building Co Vision[1]

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Building your companys vision

Harvard business reviewcase study 1 (sept-oct 1996)


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We shall not cease from exploration

And the end of all our exploring

Will be to arrive where we started

And know the place for the first time .

By T.S . ELIOT


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Developing a vision

One should understand what should never

change and what should be open for change

Success lies in the ability to manage

continuity and change

Possess the discipline to manage change


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How does a vision help Should be understood by everyone

One needs to understand :

Guidelines about what to preserve (present )

What lies in the future


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Vision habits of successful visionary

companies A well conceived vision has two major

components

Core values

Core ideology Envisioned

Core Future

purpose


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Core ideology & Envisioned future

Core ideology defines for what we stand

for and our existence

Envisioned future Is what we aspire to

become , to achieve , to create something

that will require significant change and

progress to attain


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Core Ideology The enduring character

Consistent identity that transcends product /

market life cycles, technology, management fads,

and individual leaders

It is the most lasting and significant contributions

for those who build visionary companies .

Eg HPS Way- H.P.C

ore ideology whichincludes deep respect for individuals, dedication to

affordable quality and reliability, a commitment to

community responsibility. *pg 66


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Cont:

It provides the glue that holds an organization

as it grows , decentralizes , diversifies ,

expands globally and develops workplace

diversity.

Core ideology is further divided :

Core values-- a system of guiding principals

Core purposes-- reason for existence


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Core values

Essential tenets, a small set of timeless guiding

principles, require no external justification,

they are intrinsic. They may have competitive

advantage or may even be a competitive

disadvantage.*pg 68(chart)


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Core values:

Core values are independent of the current

environment ,competitive requirements, or

management fads. The key is not what core values an organization

has but that it has core values at all.

Companies have 3 to 5 core values visionary

companies . Few values can be core that can

seldom change.


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Cont:

Strategy can change - core values do not

change.

Even if the current market does not value ,

find markets, if necessary , to remain true

to it core value.

Who should be involved in articulating the

core values - Mars group


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Identification of core values : Identify what values are truly central

Dont confuse core values with operating

practices, business strategies, or cultural norms.

Values must always stand the test of times.

If no ask that should it remain as a core value.

Eg quality as a strategy and not a core value


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Core purpose:

It is the reason for which the organisation

exists.

Should reflect peoples idealistic motivation

to work

Purposes should not be confused with goals

and strategies.*pg 68


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Core purposes eg:

3M-To solve unsolved problems innovatively

McKinsey and co . to help leading corporations

and governments be more successful Wal Mart To give ordinary folk the chance tobuy the same thing as rich people

Walt disney To make people happy. We can see purpose cannot be fullfilled it is just a guiding star

which keeps you going . Method of getting out core purpose-Five

whys*pg 70 eg Market Research co.


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Cont:

Prime role of core purpose is to guide and

inspire

Maximizing shareholders value cannot be

called a core purpose .

Get the core purpose by :

random corporate killer game*pg 70

The Mars group *pg 71


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Discovering core ideology:

Cannot be set or created but discovered

Deduce it by looking inside.

Ideology has to be authentic, you cant fake it. Not an intellectual exercise.

Core ideology is to guide, inspire ,not todifferentiate.

C

ore ideology needs to be meaningful inside theorganization but need not be exciting to outsiders.

Therefore a well articulated ideology can go along way for a companies success.


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The strong version of the rule is -

If you find it is not core, - change it


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ENVISIONED

FUTURE : Second primary component of vision

framework.

Consists of two:

A 10- to- 30 year audacious goal(BHAG)

Vivid description of what it would be like to

achieve the goal.


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Vision level BHAG BHAG- Big, Hairy, Audacious goals

Bold mission to stimulate progress.*pg 73

BHAG acts as a catalyst for team spirit.

BHAG engages people , it reaches out , grabs

them. It is tangible,energising,highly focused.

E.g. NASA *pg 73 Organization has BHAG at different levels , but

vision requires a special type of BHAG.


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It applies to entire organization- requires 10

30 years to complete.

Setting BHAG requires thinking beyond

current capabilities of the org and current

environment.


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Envisioned Future- BHAG

It is not a sure bet, but maybe 50-70% chance of

success, requires extraordinary effort and also

luck.

Four Broad Level BHAGs

- Target

- Common Enemy

- Role Model

- Internal Transformation


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Envisioned future vivid description A vibrant engaging and specific description of

what it would be like to achieve a B-HAG.

Translating vision from words into pictures - animage that people will carry in their heads. Mustevoke a gulp factor.

Passion - emotion - and conviction are essentialparts of the vivid description

Picture of what you would like to be / see in thefuture

EG Henry ford *pg 74


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Some important Points:

Dont confuse core ideology & envisioned future -

core purpose and B-HAG

Both have got to be articulated as distinct items.

Again core purpose is the reason why an org

exists.While BHAG is a clear articulated goal.

Core purpose can never be completed while

BHAG is reachable in 10 30 years. core purpose is the is the star in the horizon to be

chased for, while BHAG is the mountain to be

climbed .once you reach the summit you move on

to the next.


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No sense to analyze whether envisioned

future is the right one- no right answer.

To create envisioned future require certain

level of confidence and commitment.

Replacing BHAG after achievement.

Eg NASA moon


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ALIGNMENT : Building is visionary company is still 1%

VISION & 99% ALIGNMENT

With alignment - even a visitor from outside

can make out what you are.

Most important work.

Success depends upon alignment


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BUT THE BOTTOM LINE IS :

To recast our vision or mission into an

effective context for building a visionarycompany

And dont confuse them with values, goals,

purposes,philosophies,beliefs,practices anddescriptions as they are usually boringconfusing and structurally unsound.


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Thank you

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01 Building Co Vision[1]