VISION, MISSION, OBJECTIVES

AND
STRATEGY
 Vision
Vision statements are considered as a critical component in
any strategic plan and the reason is because these strategic
plans are all about creating a different future which is then
articulated in your vision statement.

Vision statement needs to be concise and clear but it needs

to paint a picture for where you are going and why you want
to go there.

And that’s your critical word here is to remember, is

“Where.” Where are you going as a company? What does
success look like in the future for you?
Vision talks about “Where” does one wants to reach in
Future say for e.g. 5 years or 10 yrs. from now”.

 Example Company XYZ wants to be leader in

manufacturing of Electric vehicles.

 Vision statement articulates the future of the company

where the company is heading towards and lays out what it
seeks to become in long terms says for example 5 years or
10 yrs. from now.

Vision provides bases foundation for defining mission

statement.
 Mission:

 Mission talks about “What” is that the reason for your presence
of your organization or what’s the fundamental reason why you
came in this business ”.

 In short, Mission statement is a written description of an

organization’s purpose for existing.

 Mission statement will help other know what we do and why are
we in this business.
 Goals:
Goals are defined from what company wants to realize.

 It can be profit or good customer service Goals are usually

expressed as percentage (%) in measurable terms.

These should be SMART goals where SMART stands for

Specific, Measurable, Attainable, Realistic and Time bound.

 Say for example our one of goals could be to have 15%

increase in revenue or 10% decrease in non-value added
activities.

Companies normally define their goals and objectives in

 Objectives:
 Objectives are the specific actions taken to achieve these goals

 Say for E.g. my Goal is to “Increase revenue by 10% and

decrease waste reduction by 5%”, then based on this goal I will
formalize my objectives based on this goal which can be

-1st goal is “Increase revenue by 10%”

-add 5 new customer and retain at least 2 customer
-2nd goal is “Decrease waste reduction by 5%”
 In conclusion;

Vision: Where?

Mission: What?

Objectives: Why?
 Where do
Objectives Desired Ends
you want
outcomes Results
to be?

Means to
How do we Broad Action achieve
Strategy get there? Plan objectives
 Benefit of Strategic Vision:
 Provides direction:
Strategic vision provides long-term direction to the
organization. It prepares the organization for future.
 Guides for decisions:
Strategies vision reflects intent of the organization. It guides
strategic decision.
 Shapes strategy:
Strategy vision is the future aspiration of an organization.
Strategic management always focuses on strategic vision.
 Sets priority:
Strategic vision set organizational priority. It further guides
planning.
 Aligns people and activities:
Strategic vision aligns people and activities across the organization.
It enhances organizational effectiveness.
 Reflects core values and belief:
Strategic vision reflects the core values and beliefs which the
overall management system of the organization.
 Empowers employees:
Employee's motivation, commitment and empowerment are vital
for organization success. Strategic vision aims employee
empowerment to focus their efforts towards it.
 Brings change:
Strategic vision intends to brings change in the organization. It acts
as the Centre of hope in the organization.
 Characteristics of strategic vision:

Directional: An effective vision provides direction and makes

clear where the organization is going. This means that a vision
needs to be specific enough to shape decision-making and broad
enough to allow innovative strategies for vision realization.

Clear: the vision must clarify focus, and direction to ensure that
scare resources are focused on the most strategic initiatives.
Clarity allows individuals across the organization to have a
shared sense of what's important and what's not, to ensure that
they are free to act within those constraints.
Purpose driven: An effective vision provides a larger sense of
purpose for the organization and its people. Purpose is about why
we exist. Vision connects people to a meaningful purpose,
allowing them to feel that they are part of something bigger than
themselves.

Challenging: A vision is a goal that should challenge, stretch and

set a high standard for the organization. Effective vision
represents a future that is beyond what is possible today or what
we think possible tomorrow.

Unique: An effective vision reflects what's unique about the

organization, it recognizes what makes it different. Vision must
make clear the activities that the organization will and will not
pursue, the capabilities to be developed.
Vivid: An effective vision provides a vivid mental image of what
the organization will be like in the future. Well-crafted vision
describes the future in a way that is easy to imagine and to
picture in the mind's eye.

Inspiring: An effective vision engaged and inspires people to

commit to a cause. Vision appeals to the hearts and minds of
people. An effective vision moves you emotionally, creating a
desire to sign up to the cause.
 Developing Strategic Vision and Mission:
 All the factors affecting the SLOC analysis is required within and
outside the organization.
 Manager from top to bottom level should be involved in
developing strategic vision. Participatory involvement enhance
the responsibility towards organization.
 Collection of different document prepared by different
department of manager for the preparation of vision.
 There should be the review of related studies i.e. literature
review.
 Discussion of collected document by manager and modification
if necessary.
 Final draft of vision is prepared by the collaboration of all
participatory employees.
 Features of Mission:
 Broad in scope
 Precise (not more than 250 words)
 Multi-components ( market, technology, philosophy, etc)
 Distinctive (build of image)
 Inspiring
(BIMDP)
 Importance of Mission:
1. Brings uniformity
2. Base of resource allocation
3. Develops organizational culture
4. Enhances employees ownership
5. Reflects the organizational responsibility
Concept of Objectives:
 The expected outcomes of an organization are known as
objectives.
 They convert the strategic vision into specific performance
targets. Objectives show the managerial commitment towards
performance achievement.
 In other words, they are the end result of planned activity.
 Each and every organization is established for achieving certain
objectives.
 Hence, the organizational activities are directed towards their
achievement.
 Objectives may be formulated for a long as well short term.
 Objectives also reflects the interest of the organizational
stakeholders.
 Components of Objectives: (SMART)
1. Specific
2. Measurable
3. Achievable
4. Realistic
5. Timely
6. Motivating
7. Flexible
8. Hierarchical
 Level of objectives:
Corporate level: At this level, objectives reflects the overall
scope of organization. The main concern of objectives
formulation at this level is how to run a firm in structural and
financial term and how to allocate resources optimally to
different operations and activities.
Business level: At this level, objectives are formulated to
compete in the market. Business level objectives try to express,
for examples, which specific product will be selected to compete
on a low cost basis in the market to achieve organizational
objectives.
Functional/Operational level:
Objectives express how marketing, finance, human resource
functions help to achieve competitive advantage. Objectives state
about product promotion, training, development and risk
management.
Individual/Operating unit level:
Objectives are formulated to express responsibility of plant
managers, geographic unit managers and frontline managers
operating units. With such objectives organization can easily
compete in the market to get competitive advantage.
 Crafting Objectives:
Increase profitability: Strategic management is concerned with
getting competitive advantage from the market. Its bottom line is
to earn profit and return on investment in the business.
Increase productivity: It refers to the maximum level of outputs
with minimum inputs. Objectives are set for the efficient use of
organizational resources, such as machine, labor, information etc.
to increase the productivity.
Extended product: Objectives are set to express how a firm will
to extended its product line or develop a new product, undertake
product research etc. such an expression will help to recognize
how the firm is achieving its product planning and strategies to
take a competitive advantage in the market.
Express competitive position in the market: After setting
objectives organizations make their competitive positions clear in
front of their competitors. For examples, a firm tries to indicate
through its objectives that it needs to achieve the first position in
the market in terms of sales volume.
Develop employees: Organizations seek to enhance capacities
compared to those of the competitors by developing knowledge and
skills of their employees. They state explicitly through the
organization objectives their needs to develop employees to make
them prepared to compete in the market. Objectives are also
required in enhancing core competency, productivity and quality of
work life etc.
Strengthen employee relations: Organization set objectives to
improve employee relations. In order to get a competitive
advantage, it is essential that there be a harmonious relation
between management and employees. This is possible when the
management acts for maximizing welfare and interest of working
Manage physical facilities: Objectives are set to manage a
firm's physical facilities. It includes the firms long range
objectives of increasing production capacity or decreasing space
due to the effect of e-commerce. To use physical facilities
strategically it is essential to formulate explicit objectives
detailed with required time and budget.
Take technological leadership: Organization set objective to
make efficient use of the available technological and be a
technology leader in the market. Some business organization are
opting for very efficient technology to make the quality of their
product better than those of their competitors.
Difference between financial and strategic objectives:
Strategic Objectives Financial Objectives

1 Objectives that are competition An objective set by a company in which the

focused and aim to be a best player in target state is measured in monetary terms, such
its market or industry. (Bigger market as a certain amount of profits, or a certain
share, new segments, Differentiation, percentage increase in profits over a period of
Cost rationalization, improve supply time.
chain, electronic commerce.

2 long term 5-10 years, Short term 2-3 years,

3 The strategic plan provides the financial plan shows the direction towards
direction towards achieving the achieving financial objectives.
strategic objectives (vision of the
company)
4 strategic plan is required to align the A financial plan is required to manage the cash
resources according to the ultimate flows within the company
objectives of the company.
5 wide range coverage limited scope