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HOW TO MAKE A VISION STATEMENT AND FORMAT FOR VISION STATEMENT

This is an important guided practical exercise in vision building. It pertains to the competency of creating
a vision statement to fulfill the role of ‘direction setting’ by a leader.

This is an individual cum group exercise and would have a bearing in the marks to be included in your class
participation. The skill of building the vision statement will be tested in midterm and/or end term
examination.

In this exercise, there are marks for the written work individually and there is mark for the group for the
presentation. Hence both individual written component and presentation are important. The overall
marks will be your individual mark+group mark divided by 2 and then the marks will be considered for
evaluating your class participation. At least 20 percent of the class participation marks will be based on
this assignment marks.

Exercise Instruction: You must read the papers on Collins and Porras Model (given as readings in the
course pack) under the vision statement and should follow the model given in these papers it strictly for
this exercise. Following any other models, will not fetch any marks.

Clarifications:

The two readings Collins and Porras might tend to create some confusion (some former batch students
have mentioned so). It is clarified that vision statements have 1) core values, 2) core purpose, 3) Big Hairy
Audacious Goal and 4) a vivid description. In other words, you should find if the vision statement of
companies have all the four components. The confusion comes when people write the first three and then
add the fourth as vivid description. This is incorrect. Vivid description means describing the first three
vividly and not describing the first three and then adding another component called vivid description.

What are core values? Core value is a value that an organization will never compromise. For example,
some may have core value of integrity, while some others may have core value of achievement
orientation. Core values of the individual and the organization may be different; however, core values of
an organization should be so designed that at least some of them are similar to individual values.

It is here the values of Rokeach and Schwartz come into play. Rokeach has defined individual values in
terms of terminal values and instrumental values. The former is an end in itself while the latter helps to
lead to the former values. For example, ambition is an instrumental value and this can lead up to a sense
of accomplishment, which is a terminal value. Terminal and instrumental values are:

Terminal Values of an Individual Instrumental Values of an Individual


1. True friendship 1. Cheerfulness
2. Mature love 2. Ambition
3. Self-respect 3. Love
4. Happiness 4. Cleanliness
5. Inner harmony 5. Self-control
6. Equality 6. Capability
7. Freedom 7. Courage

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8. Pleasure 8. Politeness
9. Social recognition 9. Honesty
10. Wisdom 10. Imagination
11. Salvation 11. Independence
12. Family security 12. Intellect
13. National security 13. Broad-mindedness
14. A sense of accomplishment 14. Logic
15. A world of beauty 15. Obedience
16. A world at peace 16. Helpfulness
17. A comfortable life 17. Responsibility
18. An exciting life 18. forgiveness

Schwartz, another scholar, identifies five dimensions and several values under it. The table below gives
these:

Dimension Value What is means What behavior an you expect


1 Openness to Self-direction Independent in Creativity, exploring, e.g., Vasco
change thought and da Gama or researchers.
direction
2 Stimulation Excitement Seeks novel experience and
challenge. E.g., an entrepreneur
3 Conservation Security Safety, stability and Gives and expects assurances,
harmony guarantees and written rules.
4 conformity Restrains actions a Limits action that may upset
and inclinations others and social norms
5 Tradition Respect and Accepts customs, religious
commitment to beliefs and ways of doing
existing things things.
6 Self- Achievement Personal success Demonstrates and values
achievement competence and works very
hard
7 Power Provides social Controls and dominates people,
status and prestige e.g., many politicians who are
not typically leaders.
8 Self- Benevolence Welfare and Tends to support others and
transcendence goodness of others redistributes resources
9 Universalism Understanding, Protection and welfare of all
appreciation and people, nature and
tolerance sustainability.
10 Hedonism Hedonism Pleasure seeking Having fun, entertainment e.g.,
Google, Southwest Airlines

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It is well known that when individual and organizational values merge, productivity and other
organizationally desirable variables increase. Organizations tend to use terms in their value statement
that reflects at least some of the individual values. The terms they tend to use are given below:

1 Openness to Change, self-direction, simulation, independence, excitement


change
2 Conservation Security, conformity, tradition, loyalty, corporate citizenship, avoidance
of conflict, stability, harmony, respect, commitment, customs, assurance,
norms.
3 Self- Achievement, power, status, prestige, success, challenge, control,
enhancement dominance, competes, excellence, entrepreneurship
4 Self- Benevolence, universalism, welfare, empathy, understanding,
transcendence appreciation, protection, support, environmental, sustain, trust etc.
5 Hedonism Fun, enjoy etc.

An organization should normally not have more than six core values. If there are too many, it becomes
too complicated and no one knows what is core and what is not ‘core’.

Core Purposes. This is in fact a ‘to be’ statement distinguished from ‘to do’ statement. In core purpose
organizations tend to make statements such as ‘to be the most admired marketing company, ‘to be known
for innovative pharmaceutical company’, ‘trusted name in retain investment’, ‘to be the flavor of coffee
in India’ and similar ones. There can be a bit of abstractness in this. It is quite acceptable. The real test is
to check whether they indicate the ‘value proposition’ of the business clearly. For example, if you are a
coffee company, you can say flavor of coffee. The acid test is what you aspire to be in the value
proposition.

Big Hairy Audacious Goal. The term Big Hairy is a US vestige. Kids in US used to be told the stories of bear.
A bear is a symbol of strength and audaciousness in the US. So, the business authors have borrowed the
big and hairy from this and called the goal Big, Hairy, Audacious goal (BHAG), pronounced as Bee-haag.
The crux of it is that it is the specific stuff that you will do. It has to be SMART (specific, measurable,
attainable, realistic and time bound). Additionally, it has to be audacious too. Audaciousness is a matter
of probability. We consider something audacious if the probability of achieving it is 70% (a
guideline/guestimate). If it is more probable, say 90% probabley, it would be too easy and not audacious,
and if less, say, 40 percent, it may be too unrealistic. Let us now take an example and say that the BHAG
for TAPMI is “to be within top ten ranking business schools in India by 2020”. This can be considered a
good BHAG because it is specific (within top 10), measurable (from the ranking outputs), attainable and
realistic (70% probability) and time bound (year 2020). Similarly if the Tata group says “to be a US $ 350
billion company by 2025”, it may be also be a good BHAG because it is now more than 100 billion, it grew
from 8 billion to 100 billion between 2000 and 2015. So, a 70% growth would be at least 70% probable.

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Vision statement exercise cum presentation – format for submission of the
assignment (Submit hard copy of the day of the presentation)
Name: Vishnu Pallath Group: 7 Section: 5

Name of the company: Dena Bank

Web site address of the company: https://www.denabank.com/

Market Capitalization (Rs. Cr): 30.08 as on 12 January 2018 (Data from www.moneycontrol.com)

General Instructions for Vision Exercise

1. Evaluate the vision of the company allotted to you using the following
format individually.
2. Get together in your groups and discuss the key learning from each other.
3. Submit the assignment individually on the day of the presentation (hard
copy).
4. Submit the learning of the group (one page maximum) on the day of the
presentation.

Allocation of Companies

Allocation of companies will be mailed to you in due course. Group leaders will
decide the date for group interaction and finalization of the one page group
learning. If the group does not have a nominated leader or a natural emergent
leader, the person with the smallest roll No in the group will be considered the
leader. In case of any doubt or clarification, you can call me at 9483210134 or
mail me at james@tapmi.edu.in

Format for submission


Pts Score granted by you
1 On opening the website, there is a clear and 0 0
prominent link to the vision of the company. (If yes,
give 10 else 0)

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2. If not, can you get the vision the moment you type 0 8
search words in the search box of the company web
site (If yes, give 8, else 0 ). If not, go to the next serial
3 I clicked various options such as about us and reached 1 7
the vision statement. I clicked 4 times (state the No of
clicks in figure by ticking appropriately below) before I
was able to reach the vision statement. (Evaluate as
per the guidelines below and write in the column
opposite

A. If 1 click -8 pts
B. If 2 click -7 pts
C. If 3 click -6 pts
D. If 4 click -5 pts
E. If 5 click -4 pts
F. If 6 click -3 pts
G. If 7 click -2 pts
H. If 8 click -1 pt
I. If 9 or more click -0 pt.

4 Your comment on the experience of finding the vision statement (round the appropriate choice)

A. Exceptionally exciting experience

B. Very Exciting experience

C. Exciting experience

D. Neutral

E. A little frustrating experience

F. Moderately frustrating experience

G. Highly frustrating experience

Learning point: This is a surrogate measure for pride in vision and communication of the vision. If your
company is proud of the vision statement, they will announce it from roof top.

What is the vision statement? (Copy from the site and paste in the box below). In case you could not
find, state “could not find the vision statement “

Vision Statement:

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“DENA BANK will emerge as the most preferred Bank of customer choice in its area of operations, by
its reputation and performance.”

Your comment: How inspiring is the vision statement? (round the appropriate answer)

A. Exceptionally inspiriting
B. Very inspiring
C. Neutral
D. Not very inspiring
E. Not at all inspiring.

If you found the vision statement inspiring, what words in the statement inspired you?
(state 3 words or terms that inspired you in order of their priority)

1.Priority 1 (word / term) – Most preferred bank of Customer choice

2.Priority 2 (word / term) – Reputation

3.Priority 3 (word / term) – Performance

If you did NOT find the vision statement natural or not inspiring, what was the reason for it?
(Describe in brief)

Learning point: The need to create a vision is self -explanatory. You need to focus on doing so while
making the vision of a company or a vertical or team.

Core Values:

Are the core values a part of the vision statement?

1. YES 2.NO
If NO, where is it given in the website?

What are the core values of the organization as given in the vision statement?

Not explicitly mentioned, but can identify these values from vision statement ;

Customer Priority & Satisfaction, Reputation

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Learning Point: Core values are important to align people to your vision; whether of the
organization, vertical or a team. If the organization does not have the values well – articulated,
you will find it difficult to align you team. Remember that in a few months for now, you will be a
team leader of a nested team (a team that is part of an organization) and would have to know
the vision statement to align your team’s actions to the organizational goals.

Core purpose

Are the core purpose of the organization clearly a part of the vision statement?

1. YES 2. NO
If NO, where is it given in the website? In the Mission Statement

What is / are the core purpose of the organization as given in the vision statement?

Premier financial services, Positive Work Environment, Superior Financial Returns and
Economic Growth

Learning point: Core purpose must be well articulated in the vision statement. It gives the
organization a direction to move.

Audacious Goal

Does the vision statement have audacious goals?

1. YES 2. NO (Round the appropriate answer)


Does the audacious goals have a time frame?

1. YES 2. NO (Round the appropriate answer)


The audacious Goals and their probability of achievement: (Narrate this in the table below
from 1 to 4 and then record the probability of achieving using the rating guide given below).
Use the following statement to describe the probability of achieving. Some companies may
have more than one BHAG.

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1. 35 to 45 % probable to achieve the goal- Highly impractical
2. 46 to 55 % probable to achieve the goal- Impractical
3. 56 to 65 % probable to achieve the goal- Over audacious
4. 66 to 75 % probable to achieve the goal- Big Hairy Audacious
5. 76 to 85 % probable to achieve the goal- Non-Audacious
6. 86 to 95 % probable to achieve the goal- Highly non- audacious
7. Greater than 96% probable to achieve the goal – Very mundane.

S Audacious goal (as stated in the vision statement) or Probability of achieving (in
No BHAG (No need to fill all the serials. Stick to the this column, use the terms
relevant ones from the input from the web site) such as highly impractical,
impractical mentioned above
Ser 1 to 7 above.
1. Most preferred bank of Customer choice in its area of 4
operations
2.
3.
4.

Learning Point: Goals that have a probability of achieving should be ‘Big Hairy Audacious ‘. Only
then it will be challenging. Evaluate from current strength of the company, how it has grown so
far while making this assessment in relation to the goals specified. For example, Tata group
grew from 8 billion to 100 billion between 2000 and 2015. It plans to reach 350 billion by 2025.
You could give it at least a 70% chance.

Vivid description

How vivid is the description?

A. Exceptionally Vivid
B. Very Vivid
C. Vivid
D. Neutral
E. Not very Vivid
F. Not Vivid
G. Not at all vivid

Your Recommendation:

What is the modification you suggest in the vision statement? Specify the statement you recommend

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Option 1:

Clear Goals and strategic objectives are not mentioned.


Must be more customer Centric Vision Statement and a sustainable goal statement.

“DENA BANK will emerge as the number one Bank of customer choice in its area of operations, by its
reputation and performance and to be a financially viable, independent community bank that is
committed to improving and sustaining the quality of life of the communities served”

Option 2:

Note: If you recommend no change, you should justify why you make such a recommendation in the
space below

If you make a recommendation that no change is required, justify the same in the space below:

Learning Point: You should able to create a vision statement at organizational, vertical or team level to
inspire and align the people. This exercise hones your skill for it.

Name: Vishnu Pallath

Roll No: 16S557