Vision , Mission

Objectives and
Goals

Prof. Murali Krishnamurthy

 Vision

“Description of something in the future”

“Mental perception of the kind of environment

an individual, or an organization, aspires to
create within a broad time horizon and the
underlying conditions for the actualization of
this perception”
 Vision Statement

A vision statement answers the question,

“ What will success look like?”

The pursuit of this image of success is what

motivates people to work together.
A Vision provides strong foundation for
developing a comprehensive mission
statement .
Strategic vision addresses the „where are we
going‟ questions and explains the course
and direction chartered by management.
A strategic vision should provide a clear
understanding of what the business should
look like and provide help to take strategic
decisions.
Vision
•Strategic intent should lead to an end.
•That end is the vision of an organization or an
individual.
•It is what the firm or a person would ultimately
like to become.
•Should be short and specific.
•It should be based on overall purpose of organization
Characteristics

1. It‟s a blue print of the kind of business

organization the is trying
create and the management to
it would
occupy.
2. It should bemar forward looking a provide
ket the management will adopt
strategic course
to help the company prepare the future
pos
3. Specific and provide guidelines to managers
itio
for making decisions and allocating resources
n
4. Flexible to changing environment
5. Within realm of companies hope to achieve
6. Appeal to emotions and motivate employees
7. Narrow vision, can focus effort and excite
people
8. May not fit to present circumstance, but
contributes to future. Shows picture of future.
9. Should be easy to explain to all stake holders
and preferably short
 Benefits of having a vision

Good visions are inspiring and exhilarating.

Help the organization to prepare for the future.
 Clarifies and crystallizes the senior executives
views about the companies long term direction.
Good vision reduces risk-taking and experimentation.
 Good vision help to motivate and morale
boostingof employees.
Good visions are competitive, original and unique.
Good visions represent integrity, they are truly
genuine and can be used for the benefit of people.
Limitations of a vision statement

 Vague and incomplete

 Not forward looking
 Too broad
 Uninspiring
 Not distinctive
Examples

1. BSNL Vision Statement : “To become

the largest telecom service provider in
Asia.”

2. Walt Disney vision Statement : “Make

people happy”

3. Stokes Eye Clinic, Florence, South Carolina :

“Our vision is to take care of your vision.”

Example vision statement

Infosys

Vision “To be a globally respected

corporation that provides best-of-
breed business solutions, leveraging
technology, delivered by best-in-
class people."
 VISION

Our Vision is to be world’s mobile

the
communication leader – enriching
customers’ lives,and
individuals, businesses helping
communities be more connected in a
mobile world.
 Why is a Strategic Vision
?
Important?

A managerial imperative exists to look beyond today

and think strategically about
Impact of new technologies
How customer needs and expectations are changing
What it will take to outrun competitors
Which promising market opportunities ought to be aggressively
pursued
External and internal factors driving what a company needs to do
to prepare for the future
Examples: Mission and Vision
Statements

Microsoft Corporation

Empower people
through great software
anytime, anyplace, and
on any device.
 Examples: Mission and Vision
Statements
Intel
Our vision: Getting to a billion connected computers
worldwide, millions of servers, and trillions of dollars
of e-commerce. Intel’s 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 people’s
computing experience. We are helping to expand the
capabilities of the PC platform and the Internet.
 Examples: Mission and Vision
Statements
Otis Elevator
Our mission is to provide any customer a means
of moving people and things up, down, and
sideways over short distances with higher
reliability than any similar enterprise in the world.

Avis Rent-a-Car
Our business is renting cars. Our mission is total
customer satisfaction.
 Examples: Mission and Vision
Statements

American Red Cross

The mission of the American Red Cross

is to improve the quality of human life; to
enhance self-reliance and concern for
others; and to help people avoid,
prepare for, and cope with emergencies.
 Examples: Mission and Vision
Statements
3Com

Our mission is to connect more people and

organizations to information in more innovative,
simple, and reliable ways than any other
networking company in the world. Our vision of
pervasive networking is of a world where
connections are simpler, more powerful, more
affordable, more global, and more available to all.
 Examples: Mission and Vision
Statements

Ritz-Carlton Hotels

The Ritz-Carlton Hotel is a place where the genuine

care and comfort of our guests is our highest mission.
We pledge to provide the finest personal service and
facilities for our guests who will always enjoy a warm,
relaxed yet refined ambiance.
The Ritz-Carlton experiences enlivens the senses,
instills well-being, and fulfills even the unexpressed
wishes and needs of our guests.
 Examples: Mission and Vision
Statements
Eastman Kodak
We are in the picture business.

Wit Capital
(an Internet startup company)

Our mission is to be the premier Internet

investment banking firm focused on the offering
and selling of securities to a community of online
individual investors.
Mission
 Mission

Organizations relate their existence to satisfying

a particular need of the society. They do it in
terms of their mission.
Mission is a statement which defines the
role that an organization plays in a society.
It refers to the particular need of that society for
instance, its information needs.
Defining Mission

“Essential purpose of the organization,

concerning particularly why it is in existence,
the nature of the business it is in, and the
customers it seeks to serve and satisfy.”

“Purpose or reason for the organization‟s

existence.”

“Mission is an enduring statement of

purpose that distinguishes one firm from
other similar firm.”
Different
from vision by it is more focused
on "what is our business‟ as compared to
the "where are we headed‟ or "what
we wand to become‟ nature of vision.
Characteristics

1. Declaration of attitude
2. Customer orientation
3. Declaration of social policy
1) Declaration of attitude
Not designed to specific or to have a
concrete end.
Is declaration of attitude and outlook
Is meant to provide motivation, general
direction, an image and a philosophy
to guide the organization
Should be flexible, even vague to provide
room for adapting to changing
environments and ways of operations
2) Customer orientation
 Reflects the anticipation of customer.
 The operating philosophy of the organization
is to identify customer needs and then provide
a product or service that fulfill those needs.
Should define:
 “What organization is and what is aspiring to
be‟
 “Be limited enough to exclude some exclude
some ventures and broad enough to allow
for creating growth
 "Have its own identity that distinguish it from
others‟
“Serve as a framework to evaluate
both current and prospective
activities.
"be stated in terms sufficiently clear to be
widely understood throughout the
organization‟
3) Declaration of social policy
Socially oriented policy suggest that
the company takes into consideration
not only profit owed to shares and
what it owes to major stakeholders,
but also seriously responds to
responsibilities towards consumer,
environmentalists, minorities.
Mission Statement

“A mission statement is an enduring

statement of purpose that distinguishes one
business from other similar firms. A mission
statement identifies the scope of a firm‟s
operations in product and market terms.”
BSNL mission

“To provide world class state of art technology

telecom services to its customers on demand
at competitive prices.

“ To provide world class telecom infrastructure

in its area of operation and to contribute to the
growth of country‟s economy.”
The mission statement of an organization is normally

short, to the point, and contains the following

elements:

Provides a concise statement

of why the

organization exists, and what it is to achieve;

Statesthe purpose and identity of

the organization;
 Defines the institution's values and philosophy;

and

 Describes how the organization will serve those

Formulating mission

1. What is the basic purpose of your organization?

2. What is unique about your organization?
3. What is in your company that will make it stand
out in a crowd?
4. Who are, and who should be, your
principal customers?
5. What are the basic beliefs, values
and philosophical priorities of your firm?
Components of mission statement

1. Product or service
2. Customers
3. Technology
4. Survival, growth & profitability
5. Company philosophy
6. Public image
7. employees
1) Product or service
 Invariably includes mention of the product or
service the company offers to customers.
2) Customers
 Information in the mission statement describes
the profiles of customers and the organization it
services.
3) Technology
 Components of the mission statement
generally refers to means of
production, operations and organizational
functions.
 It includes elements such as
equipments, materials, techniques, processes
4) Survival, growth and profitability

make a general reference to the
company‟s survival and healthy functioning,
which include growth and profitability.
5) Company philosophy :
It reflects the basic
believes, values, aspirations and ethical
priorities of company that guide the employee
in conditioning organizational function.
6) Public image :

elements of the company deals with how the
company wishes to be viewed by external
constituencies.
 To create a positive public image, the mission
statement could explicitly refers to the
responsiveness of the company to concerns about
the company and the society
7) Employees:
 To develop a public image a company could include
concerns for recognition of the value of employees
in the statement
Need for an explicit mission
To ensure unanimity of purpose within the
organization.
To provide a basis for motivating the use of the
organizations resources.
To develop a basis, or standard, for allocating
organizational resources.
 To establish a general tone or
organization
climate.
To serve as a focal point for those who can
identify with the organization‟s purpose and
 MISSION
Driving in a wireless world
Vodafone is primarily a user of technology
rather than a developer of it, and this fact is
reflected in the emphasis of our work programme
on enabling new applications of mobile
communications, using new technology for new
services, research for improving operational
efficiency and quality of our networks, and
providing technology vision and leadership that
can contribute directly to business decisions.
 Infosys

Mission “"To achieve our

objectives in an of
fairness, honesty,
environment
and courtesy
towards our
clients, vendors and
employees,
society at large."
A Vision statement describes what
the organization would like to become.

A Mission statement describes what

the organization is now.

“What the company is providing to society?”

Example Mission Statements

1. Wal-Mart "To give ordinary folk the chance to

buy the same thing as rich people."
2. Mary Kay Cosmetics "To give unlimited
opportunity to women."
3. 3M "To solve unsolved problems
innovatively"
4. Google's mission is “to organize the world's
information and make it universally accessible
and useful.”
Examples of vision and mission
statements are :
Bellevue Hospital, New york :

Vision : “ The Bellevue Hospital is the leader

in providing resources necessary to realize
the country‟s highest level of health
throughout life. ”
Mission : “ The Bellevue Hospital, with
respect, compassion,integrity and
courage, honours the individuality and
confidentiality of our patients, employees
and
community, and is progressive in anticipating
and providing future health care services .”
California Energy commission

Vision Statement : “ It is the California Energy

Commission for Californians to have
energy choices that are
affordable, reliable, diverse, safe and
environmental acceptable. “
Mission Statement : “ It is the California
Energy Commission‟s mission to
assess, advocate and act through
public/private partnership to improve
energy system that promote a
strong economy and health
environment. ”
L & T technology,Engineering
and Construction Company
 Vision
◦ L&T shall be a professionally managed indian
multinational, committed to total customer satisfaction
and enhancing shareholders value.

Mission
L&T belives that the true and full measures of
growth, success and progress lies beyond balance
sheets or conventional economic indices. It is best
reflected in the difference that business and industry
makes to the lives of peoples. Through its social
investments L$T addresses the needs of communities
residing in the vicinity of its facilities, taking sustainable
initiative in the areas of health, education,
enivironment conservation, infrastructure and
community development .
 Diffrence b/w vision and mission
Mission Statement Vision Statement
A Mission statement talks about HOW you A Vision statement outlines WHERE you want to be.
will get to where you want to be. Defines Communicates both the purpose and values of
About the purpose and primary objectives related your business.
to your customer needs and team values.

It answers the question, “What do we do? It answers the question, “Where do we aim to be?”
What makes us different?”
Answer

A mission statement talks about the A vision statement talks about your future.
Time present leading to its future.

It lists the broad goals for which the It lists where you see yourself some years from now. It
organization is formed. Its prime function inspires you to give your best. It shapes your
is internal; to define the key measure or understanding of why you are working here.
Function measures of the organization's success
and its prime audience is the leadership,
team and stockholders.

Your mission statement may change, but it As your organization evolves, you might feel tempted to
should still tie back to your core values, change your vision. However, mission or vision
Change customer needs and vision. statements explain your organization's foundation, so
change should be kept to a minimum.
 What do we do today? For Where do we want to be going forward?
whom do we do it? What is the When do we want to reach that stage? How
benefit? In other words, Why do we want to do it?
Developing a we do what we do? What, For
Whom and Why?
statement

Purpose and values of the Clarity and lack of ambiguity: Describing a

organization: Who are the bright future (hope); Memorable and engaging
organization's primary "clients" expression; realistic aspirations, achievable;
(stakeholders)? What are the alignment with organizational values and
responsibilities of the culture
Features of an organization towards the
effective clients?
statement
Objectives
Objectives

Objectives represent a managerial commitment to

achieve specified results in a specified period, of
time. They clearly spell out the quantity and quality
of performance to be achieved, the
time
period, the process
and the person who is
responsible for the achievement of the objective.
“Objectives end results of
are planned
activity”
“Objectives state what is to be
accomplished by when and should
be quantified if possible.”
•Objectives are more specific and narrower
•Objectives are always measurable
and particular
•It varies with the hierarchical level in
the organization, becoming more focused and
short
term down from top level to frontline
going
managers. are critical for
•effectiveness
Objective and efficiency, and it has been
organizational
shown
s that managers who aggressively pursue
objectives perform better that managers who are
not driven by them.
Importance of objectives
1. Objectives help to define the organization in its
environment
2. Objectives help in coordinating decisions
and
decision-maker
3. Objectives help in formulating strategies

4. Objectives provide for assessing

standards organizational
performance
Characteristics of good Objective

1. Specific and Unambiguous

2. Time horizon
3. Flexible
4. Attainable
5. Measurable
6. Multiple objectives
1) Specific and unambiguous
Help to remove confusion about the target
at which efforts should be directed
Help to determine reward structure in fair
and equitable manner
Eg : objective of almost every business
would have increased profitability, but
it should be explicitly explained, as
10% increase in profit
 2) Time horizon
Should be stated in terms of a time frame
within which they should be attained
Without a timeframe, an objective would be
ineffective and almost meaningless.
Eg : A 10% increase in profit being targeted
over a year is a different, objective than over
2yrs, if there is no time horizon, this objective
would serve no purpose
 3) Flexible
Since objectives are set in the future, which
cannot be predicted, exactly there should be
room for altering an objective should the
environment change.
4)
Attainable
 Objectives are balanced act between being
too easy and too difficult
Should be challenging enough in that they
give rise to innovation and fresh
approaches, yet they should be achievable
with not too much increase in resourse
 5) Measurable
Should be stated in quantifiable, measurable
terms
So everyone can clear about
objectives, progress can be measured towards
the objectives and employees morale can be
tied to number rather than personalities
 6) Multiple objectives
Rare to have just one objective that all
employees work towards.
Eg : An objective such as increasing in
number of customers served would directly
with either a cost maximization or quality
improvement objective.
Even when the management aligns different
objectives, even seemingly opposing
ones, but all efforts is coordinated in the same
direction.
Characteristics
1. Facilitate to achieve mission and goals
2. Set the basis for strategic decision making
3. Clear the relationship of organization with environment
4. Understandable to each member of organization
5. Should be measurable and controllable• Should be relat
ed to time frame
6. Should be challenging• Should be concrete and specific
7. Should be formed within the constraints
8. Should motivate people.
Factors affecting Objectives
1. Size of the organization :Bigger size makes
that objective formulation process
complex.
2. Level of management :Organizational
objectives are set by managers. Different
levels of managers set different kinds of
objectives.
3. Organization culture :Culture is a system of
shared set of values,beliefs and norms
Areas of objectives

1. Markets share
2. Leadership in innovation and technology
3. Product quality and productivity
4. Resource level
5. Customer satisfaction
6. Performance level
7. Social responsiveness
1) Market share
Healthy market share should sustain
even as an organization tries to
increase its share.
Sustainable market share is important
in stable markets and in competitive
environment.
2) Leadership in innovation &
productivity
Innovation is needed for success and in
some cases for survival.
Innovation must be translated into
objectives and indicate what the
organization is aiming for.
3) Product quality and productivity
Designing and ensuring quality has been
shown to be critical competitive
strength.
Constant balance between achieving
efficiency as related to cost-cutting
objective and maintaining quality.
 4) Resource level
Resources includes
inventory, equipments, capital, human
capital
Resources imply cost, their use should be
minimized without any compromise in
aspects such as quality and service
5) Customer satisfaction
Maintaining customer relations and building
customer loyalty and goodwill are highly
desirable
6) Performance level
Related to productivity and effectiveness
Performance objectives can also include
innovation and professional development

7) Social responsiveness
Business respond to society and community by
specifying explicit objectives for socially
beneficial activities.
Example Objectives

Minnesota & Manufacturing

Mining (3M)

Financial objectives
1. To achieve 10% growth in earnings
per share.
2. To achieve 20% - 25% return
on equity.
3. To achieve 27% return on
capital employed.
Objectives of BSNL

National Plan Target of 500 million subscriber base

for the country by December 2010.

Broadband customers base of 20 million in

the country by 2010 as per Broadband policy 2004.
Goals
 Goal

Goal is defined as an “intermediate result

to be achieved by a certain time as part of
the grand plan . A plan can, there for
have many goals.”
•Goal is a specific target that a firm intend to
reach in long term.
•A describes clearly the activities and task to
be completed by an individual, a department or
an organization.
•Goals should
be measurable, quantitative, challenging,
realistic, consistent and prioritized.
•Provide basics for measuring companies
performance and the process it is making
towards the vision.

•Strategic goals help managers to

establish end result of activities in general
without getting bogged down in details,
such as issues of measurement and timing
Two types of Goals

1) Financial goals :

These goals focus on achieving a
certain level of financial performance,
measured in terms of return in
investment or growth of revenues
2) Strategic goals :
 The goals focus on achieving strategic or
competitive advantages within the
industry, like technology leadership,
creativity and innovation and superior
customer service
 Characteristics of goal
According to M.D.Richards :

1) Specific : so that they are precise and

measurable, would assist management in
monitoring the progress towards
achievement of goals at each specific
point of time
2) Issues of goal :
Short-term goals and objectives should be
left to lower level managers to identify, plan
and achieve
Issues like lowering of cost and improving
quality should be included in goals of
middle level managers
3) Should be well constructed, realistic
and challenging :
Challenging goals motivates managers to
be innovative, creative and ambitious in
improving operations, marketing, sales, etc.
4) Specification of time period
Examples of goals
Strategic goals of ‘EI paso Electrical
Company’ in various operations are :

Customer Service :
Provide quality service to customer at least
equal to the highest standard in the industry
Maintain reliability of service to customer at
a level above 99%
Ensure that customer are educated about
the safety aspects of using electricity.
Community service :
Promote economic growth and increased
development of the company‟s total service area
Provide job opportunities and investment in the
service area which promotes a higher standards
of living for all citizens.
Cooperate with and serve the educational
institutions located in the service area in a
manner consistent with other leaders in the
industry.
Shareholders relations :
Assure that all expenditure are made in such a
way as to protect and enhance shareholders
investment.
Provide a rate of return to the shareholders
which is competitive with other
investments
Base all company involvement in new
programmes or projects on solid economic
principles
Employee-management obligations :
Monitor and strive to improve the quality of
management and supervision
Attract, develop and retain able and loyal
employees
Provide equal employment opportunities
and a high degree of training along with
modern, professional tools
Corporate communication :
Make a assertive effort to provide
information communication on relevant
company issues
Keep senior management apprised and
educated on current topics of interest
Enhance the community image of the
company by being receptive to the needs of
customer and the community
 Goal vs Objectives :
Goals are an expected or desired outcome of a
planning process. Goals are usually broad,
general expressions of the guiding principles
and aspirations of an organization.

Objectives are targets that are

toachieve
precise goals. Objectives
necessary statements of quantitatively are
qualitatively
detailed measurable results the plan or
hopes to accomplish.
Goals vs objectives
Goal Objective

The purpose toward which an endeavor is Something that one's

directed. efforts or actions are
intended to attain or
Meaning accomplish; purpose;
target.

I want to achieve success in the field of I want to complete

genetic research and do what no one has ever this thesis on genetic
done. research by the end of
Example this month.

Generic action, or better still, an outcome towards Specific action -

which we strive. the objective
Action supports
attainment of the
associated goal.
Goals may not be strictly measurable or tangible. Must be measurable
Measure and tangible.

Time frame Longer term Mid to short term

 San Antonio Multi-Service Market
Mission: Maximize Utilization of the Direct Care System in the San
Antonio Multi-Service Market Area
Vision: A World-Class, Multi-Service, Unified Health System
Serving San
Antonio and Referred Beneficiary Market
Goals:
Optimize efficiency between direct and private sector care
markets
Eliminate duplicate services
Increase synergy and cooperation among San Antonio MTFs
Ensure patient satisfaction with access and quality service
Strengthen Readiness by allocating appropriate mix of
resources
Collaborate support functions across the market
Objectives:
Establish the Consult and Appointing Management Office
Increase RWPs / RVUs in the direct care system per the
business plan
Consolidate logistical and contracting functions
Realign staff resources to meet patient demand