Building Companies Vision_Slideshow

8/2/2019 Building Companies Vision_Slideshow

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BuilDing Companys

Vision

Presented by :Abhishek Rai ( 11Ex-002)PGDM (Executive)

2011-12


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Vision : Why & what

Vision provides guidance about what core topreserve and what future to stimulate

progress toward.

Core

Ideology

Envisioned

future

Vision

Vision :Why & what


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Vision :Yin-Yang

Core Ideology

What we stand for

Why we exist

Envisioned Future

What we aspire to become, to

achieve, to create

Something that will requiresignificant change and progress to

attain.


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Core Ideology

Core

Ideology

ConsistentIdentity

TechnologicalBreakthrough

Managementfads

Leaders

Core ideology provides the glue thatholds an organization together as itgrows, decentralizes, diversifies,expands globally and developsworkplace diversity.

Core IdeologyIt defines the enduring character of organization

Core

Values

Core

Purpose


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Core Values

Mostly visionary company have three to five core values.How to find core Values ?

Ask relentlessly and honestly what values are truly central.

Ask about each one , if the circumstances changed and penalized us for

holding this core value, would we still keep it.

A company should not change its core values in respect to marketchanges ; rather it should change markets, if necessary, to remain true to

its core values.

Who should be involved in articulating the core values ?

Mars Group : A representative slice of companys genetic code.

Individual Organization

If you awoke tomorrow with enough money to retire , would you continue to

work with core values ?

Can you envision them being as valid for you 100 years from now ?

Will you hold them even if they become competitive disadvantage ?

Intrinsic values Belief of organization Timeless guiding principles


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Reason forbeing

Soul oforganization

InspirationGuiding star of horizon-forever pursued , never

reached

Core Purpose

Core purpose is reason for someone's existence not a goal or business

strategy.

For Mckinsey & Company, purpose is not to do management consultancy buthelp corporate and governments to be more successful.

Method of getting a purpose

Five Whys i.e. Why it is important ? Five time. After a few why, you will

come down to fundamental purpose of organization.

Can Maximizing shareholders wealth be purpose ?

Not possible as it cannot inspire people at all level of organization.

Mars Group

How could we frame the purpose of firm, so that if you work up tomorrow

morning with enough to retire, you would nevertheless keep working here.


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How ? By looking Inside. Core Ideology is to guide and inspire not to differentiate.

The authenticity, the discipline and the consistency with which the ideology

is lived not- not the content of ideology- differentiate visionary companies

from the rest of the pack.

Discovering Core Ideology

( You do not create or set it, you discover it)

Core ideology needs to be meaningful and inspirational only to the peopleinside the organization, it need not be exciting to outsider.

A clear ideology attracts people with compatible core values and repels

others.

A company can have a strong core ideology without a formal statement.

Dont confuse core ideology with core competency.

Core competency defines capabilities whereas Core ideology captures what

you stand for and why you exist.

Core competency change over decades but core ideology does not.


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10 to 30 years

audacious goal

What it will be like to

achieve the goalEnvisioned Future

Envisioned Future

How ? By looking Inside.

Core Ideology is to guide and inspire not to differentiate.

The authenticity, the discipline and the consistency with which the ideology

is lived not- not the content of ideology- differentiate visionary companies

from the rest of the pack.


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Visionary companies often use goals as Climbing Mount Everest, to stimulate

progress & commitment to a huge-daunting challenge. A true BHAG is :

Clear and compelling

Serves as unifying focal point of effort

Acts as catalyst of team spirit

Has clear finish line

Vision Level BHAG ( Big, Hairy, Audacious Goals)

Become a $ 125 billion company by the year 2000- [ Wal-Mart, 1990]

A BHAG should not be a sure bet- it will have perhaps only a 50% to 70%

probability of success but the organization must believe that it can reach the goal

anyways BHAG : Four Categories-

1. Target BHAGs

2. Common enemy BHAGsWe will destroy Yamaha- [Honda 1970s]

3. Role-model BHAGsBecome Harvard of the west- [Stanford University, 1940s]

4. Internal Transformation BHAGs- Transform this company from defense contractor tobest diversified company in world [Rockwell, 1995]


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What is Vivid description ?

Vibrant , engaging, and specific description of what it is like toachieve BHAG

In 1930s Merck has the BHAG to transform itself from a chemical manufacturerinto one of the preeminent drug-making companies of the world

Passion, emotion and conviction are essential parts of the vivid description.

Vivid Description


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Envisioned future: Key points

Dont confuse core purpose with envisioned future as core purpose can never be

completed whereas the BHAG is reachable in 10 to 30 years.

Did Shakespeare created the right Hamlet ?

It makes no sense to analyze whether the envisioned future is the right one. It is

not prediction but creation and with a creation there can be no right answer.

What about failure to realize the envisioned future ?

Visionary companies set audacious goal but they still achieve them even without

larger than life leaders at helm.

Success lies in process of lets try a lot of stuff and keep what works than by well

defined strategy.

It is about building strength of organization as primary way of creating future.

We have arrived syndrome

It is a complacent lethargy that arises once an organization achieves a BHAG and

fails to replace it with another.


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Building a visionary company requires 1% visionand 99 % alignment and for creating alignment

first step will always be recasting VISION.

Thank you

Documents

Building Companies Vision_Slideshow