In this phase, the focus should be on where the organization should be going rather than how it should get there. It deals with defining the desired end state and the setting of goals.
Vision Statement
The vision statement is an inspirational statement of where the organization wants to be in the future and should be embedded into the organization's culture. The vision statement:
- Shapes market (external) and organizational (internal) perceptions.
- Defines success.
- Outlines the desired end state.
The vision statement should be SMART (Specific, Measurable, Achievable, Relevant and Time bound). Management and leaders should be role-models by exemplifying the vision and communicating it regularly to sub-ordinates. The vision statement motivates employees to achieve defined objectives.
Mission Statement
The mission statement identifies the purpose of the organization and the reason for their existence. It should clearly establish:
- What is the principle business?
- What products/services will be provided?
- Which market will be targeted?
- What resources and technologies will be used?
- What are the desired performance levels?
- What will be results/benefits in providing these products/services?
A mission statement is a derivative of the vision and provides a path to realize the vision in line with its values.
Values / Guiding Principles
Values are the beliefs and principles that are shared by people within the organization and control the way they interact with each other and with stakeholders outside the organization. It establishes the organization’s culture and provides the framework for decision-making and setting priorities. The organizational values is the foundation for developing organizational norms, guidelines or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another.
Major Goals
This involves setting targets to fulfill the vision and mission and defines how success is measured in the desired/ideal state. A three to ten year planning horizon can be used in setting goals. The most important/critical issues to accomplish the organization’s vision/mission should be the basis of these goals. The first step would be to identify the key strategic areas which represent the most important/critical issues. Each key strategic area need to be briefly described and the goals related to the area defined.
Broad participation within the organization is required in developing goals bases on consensus. Responsibilities for achieving these goals have to be assigned to responsible managers/employees whom should take ownership of them. The priority or each area based on its impact on accomplishing the vision/mission need to be established. The most important or highest ranking key strategic area requires the most effort and resources allocated to it. |