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Today's companies are faced with an exponential amount of change. Mission statements, goal setting, and planning methods of the past are no longer producing acceptable results. Successful companies are now achieving breakthrough objectives through utilizing a technique of discovering their core ideology, stimulating progress through an envisioned future, and seeking support by the alignment of intellectual capital. Mission statements are becoming more than a series of manipulative words arranged to have a soothing tone. They have become statements of vision, and the companies who adopt this technique are becoming visionary companies. Visionary companies depend on a core ideology, which consists of values and purpose.
Values are internal beliefs that establish guidelines and provide endurance. They are everlasting, and never compromised despite external forces, such as management fads or economic conditions. They should create energy and motivation in employees, and come before company administration policies and procedures. Values cannot be copied from one company to another, because they are grown internally. A simple value such as "putting the customer first", should not require justification, however, it should generate inspiration to all.
Successful companies need only operate with a few core values. While goals and plans are constantly being developed to adapt to a changing world, values remain unchanged to provide the guiding principles of visionary companies. Purpose on the other hand, is the organization's reason for existence. It acts as a motivator towards progress and inspires the achievements of the goals and strategies it sets for the future. Unlike goals and strategies, which may be achieved over a passing of time, a companies purpose is to be constantly pursued, but never fully realized. As Bill Gates continually makes new advancements in creating more powerful software for computers, the world will always have a place for Microsoft, and it's purpose.
As a visionary company, Microsoft's purpose, "creating software to improve peoples lives", is what motivates them towards progress (1998). Organizations must clearly state their core purpose in order to invigorate employee commitment. Many employees feel that a company only exists to earn shareholder value. Employees must be motivated to participate and they must believe that their efforts will allow the company to make a contribution to society. Generating wealth for shareholders alone does little to motivate employees. According to Collins and Porras, "Today's companies more than ever need to have a clear understanding of their purpose in order to make work meaningful, and thereby attract, motivate, and retain outstanding people" (1996, 71).
Visionary companies who have defined their core ideology must maintain it and stimulate progress through an envisioned future. Big Hairy Audacious Goals (Bhag's), are one way in which a visionary company can stimulate progress. Bhag's are nothing more than bold mission statements acting as a very powerful motivator. Unlike traditional mission statements, a BHAG does not require a strategic planning committee to spend tedious hours massaging words into sentences, which are difficult at best to understand by the average employee. Bhag's, by contrast, appear so daring that they seem almost unbelievable, however they are understood with little effort. Their understanding creates a high-energy feeling of compelling participation.
Employees who can relate to core ideology through a BHAG will be more likely to behave in a supportive fashion towards the overall goal objectives of the company. Bhag's essentially motivate a company to "shoot for the moon", although in reality they may only "land on a star." Many visionary companies do indeed, "land on the moon", because of their intrinsic belief in their BHAG. Visionary companies must create a brilliant image in the minds of their employees of what it will be like once the audacious goal has been achieved. Collins and Porras agree that, "The envisioned future should be so exciting in its own right that it would continue to keep the organization motivated even if the leaders who set the goal disappeared" (1996, 75).
Audacious goals must also bring forth audacious commitment. Once a BHAG has been achieved, visionary companies should not stop, but should create a new BHAG in order to maintain the stimulation of progress toward the future. Many organizations have powerful intentions but have a misaligned means of attaining their envisioned future. Companies who have strategic plans that are dated and no longer support the organizations future, will not create a clear and compelling vision to foster employee commitment to long term goals. Companies must develop conceptual vision to allow the sum of their parts to work together, in alignment, to the benefit of the whole organization. Alignment must be sought through strategic, tactical, and operational goals.
However, most important, is the alignment of intellectual capital. Supporting a statement of vision through the alignment of intellectual capital is the process of motivating employees to commit to the core ideology over the long term. As Dave Ulrich explains, "Skilled employees who are committed to business goals are a companies most important asset" (1998, 15). Alignment of intellectual capital may be achieved a number of ways, including factors such as a developed corporate culture, employee participation, and motivational incentives. A developed corporate culture includes the work environment, any norms, myths, ceremonies, stories, and styles of management. Culture defines how goals get accomplished within an organization, and enables employees to work toward a shared vision.
Visionary companies usually maintain an open culture in which planning is decentralized, and employees are encouraged to be creative, experiment, and continuously improve. Culture shapes employees, and allows them to have a desire to work for an organization by displaying criteria that are compatible with their own. Employees are made to feel as if they are an integral part of an elite group that can accomplish the company's statement of vision. Many companies such as Southwest Airlines, and Wal-Mart have created a culture enforced by having fun and celebrating accomplishments. According to David Ulrich, "Establishing, striving for, and accomplishing goals should be energizing, exciting, and worthy of celebration" (1998, 17). By contrast, many non-visionary companies have taken the fun out of their culture by imposing management styles that do not reinforce an acceptable work environment for employees.
Employees generally work better under less supervision and when given more freedom. Many managers however, deprive employees of autonomy and make them feel undervalued. " 90 % of all managers treat subordinates as though they were members of an in-group while they assign others to an out-group" (Manzoni and Barsoux, 1998, 103). This type of relationship is often compounding and becomes worse ove...
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Research essay sample on Creating A Statement Of Vision
