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On Vision Engineering
Ziya G. Boyacigiller
This presentation was created and given by Ziya Boyacigiller who was leading Angel Investor and a loved mentor to many young entrepreneurs in Turkey. We have shared it on the web for everyone’s benefit. It is free to use but please cite Ziya Boyacigiller as the source when you use any part of this presentation. For more about Ziya Boyacigiller’s contributions to the start-up Ecosystem of Turkey, please go to www.ziyaboyacigiller.com
Vision - Mission In Practice
Ziya G. BoyacıgillerSabanci UniversitesiYonetim Bilimleri Fakultesi
The Seven Domains of Attractive Opportunities
Ziya G. Boyacigiller (c) 2005 EMBA 3
MODIFIED by ZGB, from “The New Business Road Test”, by J. Mullins
MA
CR
OM
ICR
O
MARKET DOMAIN INDUSTRY DOMAIN
VISION
Note: Market is customers, industry is sellers…
Is the Market Attractive?Assessment Metrics
Number of customers in the market,
Aggregate money spent by these customers on the relevant goods and services,
Number of units of relevant product or usage occasions,
How fast is the market growing (in the past and future)
Ziya G. Boyacigiller (c) 2005 EMBA 4
HOW DO WE PICK OUR“MARKET”?
Creating a Vision…
Ziya G. Boyacigiller (c) 2005 EMBA 5
Ziya G. Boyacigiller (c) 2005 EMBA 6
Vision…… paints a mental picture of the future.
Ziya G. Boyacigiller (c) 2005 EMBA 8
To Create a “Compelling* Vision” you need a
Picture of the Future
Vision is about going somewhere • “Man on the moon”• How Soviets ruled over the 1976 Olympics…
Where we are now
Vision Where we will be in the future
(* “compelling” means “you have to take action NOW” …)
Ziya G. Boyacigiller (c) 2005 EMBA 10
ML King speech…paints a picture of the end-result
I have a dream that one day on the red hills of
Georgia the sons of former slaves and the sons of
former slave owners will be able to sit down together
at the table of brotherhood. ...I have a dream that my
four little 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. ...I have a dream
that one day the state of Alabama. ..will be
transformed into a situation where little black boys
and girls will be able to join hands with little white
boys and girls and walk together as sisters and
brothers. ...
Ziya G. Boyacigiller (c) 2005 EMBA 11
How to Activate the Power of Visualization Paint in words a detailed description of the end
result, a picture of the future.
The power of picture works when you focus on what you want to create not what you want to get rid of.
The power of picture works when you focus on the end result, not the process to achieve it.
Enhance the visual picture with five-senses, to make it seem as real as you can
Ziya G. Boyacigiller © 2005
Vision versus Goals Vision provides continued guidance
(“leader in space exploration”)
Goals are focused on specific achievements (“man on the moon”)
Goals, once achieved, prompt the question: “What is next?”
Ziya G. Boyacigiller © 2005
Vision Defined:
Vision is knowing who you are, where you’re going, and what will guide your journey.
Ziya G. Boyacigiller (c) 2005 EMBA 14
Vision …
…defines what will happen in the future, and
how you will fit into that picture.
Examples: Microsoft – Why Bill dropped out of school… Intel – Memories to microprocessors…
Smell Changesto find Opportunities
Change drivesOpportunities
Ziya G. Boyacigiller (c) 2005 EMBA 17
Vision Engineering:1. Identify “drivers of change” for the industry.
Economic, social/cultural, political, regulatory, demographic, technological, natural trends that will change how the industry functions. Which of these “incoming waves” is strongest?
2. Analyze how these drivers of change will affect every stage of the value chain for the industry. Note the threats / opportunities.
3. Decide where you want to be.4. What capabilities and competencies does your
company need to develop, what assets do you have or should get - to exploit the opportunities, dodge the threats, and ride the waves of change.
Ziya G. Boyacigiller (c) 2005 EMBA 18
Trends Affecting PC Industry – Early 1990s Economic
Shift toward service and information economy Increased domestic and global competition Increased power of low labor-cost Asian countries …
Political Globalization of world economies Further deregulation of telephone companies Legislation of trade barriers (e.g. Japanese tariffs) …
Social Increased computer literacy and sophistication Need for reschooling and continuing education Development of computer stores …
Technological Increasingly powerful chips Faster and cheaper peripherals Increased networking capabilities …
Ziya G. Boyacigiller (c) 2005 EMBA 19
Vision Engineering:1. Identify “drivers of change” for the industry.
Economic, social, political, technological trends that will change how the industry functions. Which of these “incoming waves” is strongest?
2. Analyze how these drivers of change will affect every stage of the value chain for the industry. Note the threats / opportunities.
3. Decide where you want to be.4. What capabilities and competencies does your
company need to develop, what assets do you have or should get - to exploit the opportunities, dodge the threats, and ride the waves of change.
Ziya G. Boyacigiller (c) 2005 EMBA 20
See Both Sides of a Crisis
THREAT
OPPORTUNITY
YING YANG
Ziya G. Boyacigiller (c) 2005 EMBA 21
U.S. Auto Industry Profit Pool(Modified from HBR, May 1998, Orit Gadiesh and James L. Gilbert)
auto manufacturing
new car sales
used car sales
loans
leasing
insurance
gas
service/repair
aftermarket parts
auto rental
gasoil
100%
SHARE OF INDUSTRY REVENUE
OP
ER
ATIN
G M
AR
GIN
%
Profit = share$ x OM%
Ziya G. Boyacigiller (c) 2005 EMBA 22
How will the all-electric car affect the value chain?
auto manufacturing
new car sales
used car sales
loans
leasing
insurance
gas
service/repair
aftermarket parts
auto rental
gasoil
100%
SHARE OF INDUSTRY REVENUE
OP
ER
ATIN
G M
AR
GIN
%
Ziya G. Boyacigiller (c) 2005 EMBA 23
Maxim’s Vision (1983)
1. World will be more and more digital in the future.
2. Digital will need analog to exist.
3. Thus analog growth will be parallel to microprocessor growth.
4. Maxim will capitalize on the analog.
Ziya G. Boyacigiller (c) 2005 EMBA 24
Vision Engineering:1. Identify “drivers of change” for the industry.
Economic, social, political, technological trends that will change how the industry functions. Which of these “incoming waves” is strongest?
2. Analyze how these drivers of change will affect every stage of the value chain for the industry. Note the threats / opportunities.
3. Decide where you want to be.4. What capabilities and competencies does your
company need to develop, what assets do you have or should get - to exploit the opportunities, dodge the threats, and ride the waves of change.
Ziya G. Boyacigiller (c) 2005 EMBA 25
Maxim’s Vision (1983)
1. World will be more and more digital in the future.
2. Digital will need analog to exist.
3. Thus analog growth will be parallel to microprocessor growth.
4. Maxim will capitalize on the analog.
Ziya G. Boyacigiller (c) 2005 EMBA 26
1983
Maxim starts up
2000
Maxim sales $1B
Ziya G. Boyacigiller (c) 2005 EMBA 27
Maxim’s Value Growth
Ziya G. Boyacigiller (c) 2005 EMBA 28
Vision Engineering:1. Identify “drivers of change” for the industry.
Economic, social, political, technological trends that will change how the industry functions. Which of these “incoming waves” is strongest?
2. Analyze how these drivers of change will affect every stage of the value chain for the industry. Note the threats / opportunities.
3. Decide where you want to be.4. What capabilities and competencies does your
company need to develop, what assets do you have or should get - to exploit the opportunities, dodge the threats, and ride the waves of change.
Ziya G. Boyacigiller (c) 2005 EMBA 29
When the tide rises, all the boats rise with it…
R I D I N G T H E W A V E
Ziya G. Boyacigiller (c) 2005 EMBA 30
Maxim’s VisionResources & Capacities Needed(Why You? Why can you get there…)
Analog expertise ( knowledge) is a scarce resource, which will allow us to compete effectively ( monopolize).
We already have some of the best analog experts in the world, and we can find and train more as we grow.
We can create a world class analog company.
We can use excess fabrication capacity available in the industry for manufacturing, thus we can startup with low capital investment.
We can get the initial investment from VCs.
Ziya G. Boyacigiller (c) 2005 EMBA 31
First, Vision Next, Mission If you show the stakeholders what
your vision is, you will make sure that they are seeing the exciting “big picture” as you do.
Then, they will be excited about the specific opportunity/threat you want to pursue.
Ziya G. Boyacigiller (c) 2005 EMBA 34
Vision vs Mission Vision is about where you are going
Mission is about how you will get there
Where we are now
Where we will be in the future
Mission What we do to get from here to there
Vision is not enough; it must
be combined with venture. It
is not enough to stare up the
steps, we must step up the
stairs.
Ziya G. Boyacigiller (c) 2005 EMBA 35
Vaclav Havel
Ziya G. Boyacigiller (c) 2005 EMBA 36
Tests of a good Vision/Mission Statement Imaginable: Describes the future
Desirable: Benefits for followers
Feasible: Realistic, attainable goals
Focused: Shows what to do & not to do
Flexible: General enough to allow for “individual initiative” and “alternative response” when conditions change (situation or information) – allows moving from Plan A to Plan B etc.
Easy to communicate: Can be explained in less than 2 minutes (elevator-test)
From “Realizing Change CD, P.Kottler)
Copyright (c) Ziya G. Boyacigiller 2003, 2004
To Create Compelling Vision need:
Purpose Without purpose, visions are not compelling
enough…
Purpose defines what business we are really in, what we are here for, why we exist
Explain “Why we?”
A good purpose should “serve a greater good” (Merck)
Copyright (c) Ziya G. Boyacigiller 2003, 2004
From www.Merck.com :Merck & Co., Inc. is a leading research-driven
pharmaceutical products and services company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through its joint ventures.
OUR MISSIONThe mission of Merck is to provide society with superior
products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return.
Copyright (c) Ziya G. Boyacigiller 2003, 2004
Summary of Purpose:
Purpose is your organization’s reason for existence – meaning to exist
It answers the question “Why do you do it?” rather than just explaining what you do.
Great organizations have a deep and noble sense of purpose – a significant purpose – that inspires excitement and commitment. (stone cutters story)
Ziya G. Boyacigiller (c) 2005 EMBA 40
Example:Maxim’s Vision & Mission Vision:
World will be more and more digital in the future. Digital will need analog to exist. Thus analog growth will be parallel to microprocessor growth. Analog expertise (knowledge) is a scarce resource, which will allow us to compete effectively (monopolize*). We have some of the best analog experts in the world, and we can find and train more as we grow.
We will create a world-class analog company and use innovation to make the world a better place for us all...
Mission:We add value to our customers’ products through our analog
definition, design, and manufacturing expertise. (expertise = knowledge)
(*: At the time Maxim’s gross margin was > 70%…)
FUTURE(WHERE)
PURPOSE (WHY)
HOW
Ziya G. Boyacigiller (c) 2005 EMBA 41
Mission has two components
Mission:①We add value to our customers’ products
Benefit for customers (and other stakeholders)
②through our analog definition, design, and manufacturing expertise.
How you create/deliver that benefit what you will do / will not do
IMPORTANT!
Write your mission
statement after
you have developed
your strategy…Ziya G. Boyacigiller (c) 2005 EMBA 42
Ziya G. Boyacigiller (c) 2005 EMBA 43
Why do organizations need to make their mission clear to everyone?
Ziya G. Boyacigiller (c) 2005 EMBA 44
Vision, Purpose, & Mission
Result in: Everyone rows in the same direction.
People have the power to make important decisions on their own
They take charge (proactive) rather than wait (passive or reactive).
They find-a-way (creativity) when faced with a problem
Everyone assumes responsibility and accountability for their own actions (company gets results)
Everyone finds a place for themselves to fit in the larger whole
Company becomes effective and efficient
Copyright (c) Ziya G. Boyacigiller 2003, 2004
For Vision to become Reality:
It is important: How it is created (process of creating it) How it is communicated (keep talking, stories) How it is lived (courage of commitment, take a
step, always focus on your vision)
As the leader of your company, your job is to help articulate the vision, to champion the vision, but not to “own” the vision. Everyone in the company must own the vision. (Say “Our vision is …” and NOT “My vision is…”
Ziya G. Boyacigiller (c) 2005 EMBA 46
Final Words…Effort to define vision and mission is necessary to show
stakeholders if your business has a reason to exist now and in the future; to be a
- compelling, - viable, - growing, and - sustainable business.
If stakeholders won’t buy into this reason, they will not agree to work with you!
They will say “I’m out!”
Copyright (c) Ziya G. Boyacigiller 2003, 2004
Whatever you can do, or dream you can, begin it.
Boldness has genius, power, and magic in it.
- GOETHE
Copyright (c) Ziya G. Boyacigiller 2003, 2004
A journey of ten thousand miles,
starts with a
single step.
-CHINEESE PROVERB
Copyright (c) Ziya G. Boyacigiller 2003, 2004
A journey of ten thousand miles,
starts with a
vision.
-Ziya’s version of this CHINEESE PROVERB
He who risks and fails can be forgiven. He who never risks and never fails is a failure in his whole being.
Paul TillichZiya G. Boyacigiller (c) 2005 EMBA 50