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CHAPTER FIVE
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VISION
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To establish a meaningful vision for the company, the leadership team must consider its personal objectives for the company in other words, what the company will look like after those objectives have been achieved and what the leadership plans to do for the company in the coming years. The leadership team should consider the impact of its actions on the stakeholders (i.e., employees, customers, suppliers, and shareholders). Leaders should also discuss the company s growth objectives and what resources and changes might be necessary to achieve that growth rate. Finally, the leadership team should consider the global competitive environment, required rate of improvement, and resources. All these factors taken together will provide a sense of urgency and identify the efforts required to achieve such goals. Remember, the goals should not be easy to achieve. They must require significant effort and energy, and they must have the potential for a significant reward in terms of accomplishment, learning, money, and recognition. It is vital that the goals create excitement, nervousness, a sense of challenge, and the drive to do something differently. Executive leadership must take all these factors into account in creating a concise and compelling vision. The compulsion to achieve the vision must be visible not only in their words but also in their actions. This is so important that what the vision says is less important than how the vision is communicated. The executives hearts must be immersed in achieving the vision, and that energy must be reflected by their body language, actions, attitudes, and decisions. Although all corporate visions must lead to superior financial results, achieving superior financial results is not the only vision. The vision also reflects what a company will do to achieve better customer satisfaction and higher quality, increase market share, develop new products, or target new market segments. The vision relates to a specific need, which in turn relates to the company s core competency as an enabler to become a best-in-class or superior enterprise.
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To achieve a company s vision, its beliefs or values determine the decisions executives and employees will make. If the company s core belief is We must serve the customer to the best of our abilities, then decisions must be based on the impact on the customers perception of the product or service. Our values reflect how our behaviors guide us in our daily activities. The values include respect for each other, honesty and integrity, or care for the company and its customers. Executive leadership plays an important role in establishing the guiding principles for the company. Successes and failures are part and parcel of any initiative; however, personal values are constant. The values, beliefs, and integrity inherent in the vision inspire employees to stay the course, demonstrate perseverance, and maintain personal commitment.
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GOALS
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Once the vision and values are aligned, leadership can begin to establish strategic goals. Strategic goals are the higher-level components of the vision that must be accomplished to produce the desired results. Establishing strategic goals requires developing a business case, as well as understanding the cause-and-effect relationships between the vision and goals and the intended direction or trends. The business case begins with establishing the baseline performance level, the entitled performance level, and the desired performance level. The economic justification for achieving the vision and goals must be clearly understood. The goals then flow down into objectives and targets related to the various functions in the organization, the capability of those functions, and available resources. The management team then establishes the targets that will lead to the desired financial objectives (ultimately the profitability or money goals). The success of an initiative depends upon what information is gathered to monitor the progress, as well as how it is gathered, analyzed, and acted upon. Management must design an information system to identify, analyze, and report the required
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