Strategic Intent

Hierarchy of objectives
Vision
A strategic vision is a roadmap showing the
route a company intends to take in
developing and strengthening its business. It
paints a picture of a companys destination
and provides a rationale for going there. The
vision statement answers the question,
where are we going and why?
Elements of a vision statement
Envisioned future : future business scope
Core values: the beliefs, business principles,
and practices that guide the conduct of its
business, and the behavior of company
personnel.
Why Vision?
Breaks the firm out of boundary thinking.
Provides continuity for new pdct mkt
scopes
Identifies vector
Communicates purpose to stakeholders
Promotes interest and commitment
Nurtures a creative environment
Encourages and builds confidence
Characteristics of an effectively
worded Vision statement
Graphic
Directional
Focussed
Flexible for major SIPs
Feasible
Desirable for long term interest of
stakeholders.
Easy to communicate.
Common shortcoming in
Company Vision statements
Incomplete- short on desired destination
Vague in terms of
product/market/customer/technology focus
Bland- lack motivational power
Not Distinct
Too generic
Too reliant on ornamental superlatives.
Communicating Vision
internally and externally
Internally vision is expected to motivate and
enthuse. Normally companies summarize the
vision statement in a powerful slogan for
internal circulation.
Externally vision is meant to establish
credibility , trust and pride in its stakeholders.
Exelons
Strategic Vision
One Company, One Vision.
Exelon strives to build exceptional value - by
becoming the best and most consistently profitable
electricity and gas company in the United States.
To succeed, we must . . .

Live up to our commitments . . .

Perform at world-class levels . . .

Invest in our consolidating industry . . .

Examples of Strategic Visions
Red Hat Linux
To extend our position as the most trusted Linux and open
source provider to the enterprise. We intend to grow the
market for Linux through a complete range of enterprise Red
Hat Linux software, a powerful Internet management platform,
and associated support and services.

Wells Fargo
We want to satisfy all of our customers financial needs,
help them success financially, be the premier provider
of financial services in every one of our markets, and
be known as one of Americas great companies.
Examples of Strategic Visions

Wyeth
Our vision is to lead the way to a healthier world. By
carrying out this vision at every level of our organization,
we will be recognized by our employees, customers, and
shareholders as the best pharmaceutical company in the world,
resulting in value for all. We will achieve this by:
Leading the world in innovation by linking pharmaceutical,
biotech, and vaccines technologies
Making quality, integrity, and excellence hallmarks
of the way we do business
Attracting, developing, and motivating the best people
Continually growing improving our business
Examples of Strategic Visions
Dental Products Division of 3M
Corporation
Become THE supplier of choice to the global dental professional
markets, providing world-class quality and innovative products.
[All employees of the division wear badges bearing these words,
and whenever a new product or business procedure is being
considered, management asks Is this representative of THE
leading dental company?]

Nike
To bring innovation inspiration to every athlete in the world.
Examples of Strategic Visions
Intel
Our vision: Getting to a billion connected computers
worldwide, millions of servers, and trillions of dollars of e-
commerce. Intels core mission is being the building block
supplier to the Internet economy and spurring efforts to
make the Internet more useful. Being connected is now at
the center of peoples computing experience. We are
helping to expand the capabilities of the PC platform and
the Internet . . . We have seen only the early stages of
deployment of digital technologies.
Examples of Strategic Visions
Heinz
Our vision, quite simply, is to be the worlds premier food company,
offering nutritious, superior tasting foods to people everywhere.
Being the premier food company does not mean being the biggest
but it does mean being the best in terms of consumer value,
customer service, employee talent, and consistent and predictable
growth.

General Electric
We will become number one or number two in every market we serve,
and revolutionize this company to have
the speed and agility of a small enterprise.
Mission
Raison de etre ( reason for existence).
Also known as socio economic purpose. Tends
to establish what it wants to do for the
customers and how. Element of philanthropy
and stakeholder orientation got added with
the adoption of social responsibility concept.
Vision vs. Mission
Vision is about future business scope
whereas mission is about present business
scope and purpose.
Vision is destination focused whereas
mission is activity oriented.
Strategic Vision vs. Mission
A strategic vision The mission statement of
concerns a firms future most companies focuses
business path - where we on current business
are going activities - who we are and
what we do
Markets to be pursued
Current product and
Future technology-
service offerings
product-customer
focus Customer needs
being served
Kind of company
management is Technological
trying to create and business
capabilities
3-dimensions to mission
statements
Served customer groups: categories of
customers
Served customer functions: customer
needs
Technologies utilized: ways of serving
needs.
Key Elements of
a Mission Statement
Three factors to consider

Customer needs
What is being satisfied

Customer groups
Who is being satisfied

Technologies/resources/business approaches used and

activities performed
How customer needs are satisfied
Why mission?
Enables management to identify the
boundary between what to do and what not.
Crystallizes top managements view of the
firms long term direction
Helps mangers to keep the firm in right track.
Identifies a common path of action
Provides for a yardstick to measure
performance against aspirations.
Objectives
Tangible benchmarks to achieve.
Quantitative
Relatively short term
Directional
Multiplicity
Performance measures.
Setting Objectives

Purpose of setting objectives

Converts vision into specific performance targets
Creates yardsticks to track performance
Pushes firm to be inventive, intentional, and
focused in its actions
Setting challenging, achievable
objectives guards against
Complacency
Internal confusion
Status quo performance
Characteristics of Objectives
Represent commitment to achieve specific
performance targets
Spell-out how much of what kind
of performance by when
Well-stated objectives are
Quantifiable
Measurable
Contain a deadlineobjectives
Establishing for achievement
converts the
vision into concrete performance outcomes!
Smart* Criteria for objectives
S = Specific
M = Measurable
A = Attainable
R = Relevant
T = Time Bound

*George T Doran, Mgmt Journal, 1981

Areas where objectives may
be set
Profitability
Efficiency
Growth
Shareholder wealth
Contribution to employees and society
Technological leadership