Agenda • Definition of Vision and Mission • The Relationship among Vision, Mission and Management Control System • The Changes of Vision and Mission • How to Create The Statement of Vision and Mission • Why Vision and Mission need to be Documented • The Importance of Vision and Mission in the Organization
What is Vision? • Burt Nanus : “A realistic, credible, and attractive future for organization.“ • J.B. Whittaker : “Outlines what the organization wants to be, or how it wants the world in which it operates to be in a idealised view of world.” • Oren Harari : “ Describe a set of ideals and priorities, a picture of the future, a sense of what makes the company special and unique, a core set of principals that the company stands for, and a broad set of compelling criteria that will help define organizational success.” • Realistic : Based on reality. • Credible : Must be believable. • Attractive : If vision is going inspire and motivate those in organization, it must be attractive. • Future : Not where you are now, but it’s where you want to be in the future.
What is Vision? • A view, description, or illustration about what the company want to be in a future life. • A final goal from the company. • Vision plays an important role for organization because it gives focus on strength and weakness that the company has so it really helpful to achieve their goals. • Vision must be containt an ideal condition in the realistic future, persuade, and attractive.
Characteristic of Vision • An effective vision should have : 1. Conceptualize 2. Desirable : Attractive 3. Feasible : Realistic 4. Focused : Clear objective 5. Flexible : Responsive to environment change-over 6. Communicable : Easy to understand.
What is Mission? • Kotlerdan Armstrong (2003, p57) : “ Mission is a statement about the objective of the company, what the company want to achieve in a spacious environment..” • Salusu : “Representation about the goal of organization that shown from their product and service, fulfill the society needs, and the value that the company can obtain in the future.” • Drucker (2000 : 87) : A basic or fundamental reason about the existence of company.”
What is Mission ? • An action or steps that needed to objectify or actualize the vision from the company. • A written declaration of an organization’s core purpose and focus that normally unchanged over time. • Mission was created to communicate the investor or stakeholder about the objective and give a focus to the activities that give an impact to the achieving vision. Mission is something to be accomplished.
Example of Vision and Mission • Vision and Mission in PT. AdhiKaryaTbk. • Vision Statement : “ Be a first choice in a construction and • engineering. ” • Mission Statement : “ To create value for our shareholders, meeting customer needs with products and services that are reliable and quality, providing a safe working environment and provide opportunities to grow professionally for the employees. ”
The relations among Vision, Mission and MCS MCS is a system that used by management to build a future life from the organization and a tool for achieve the vision and mision. Vision and Mission is a reference tool for MCS to take the company reaches their goal. If the company doesn’t have a MCS, they will distress to face a radical or rapidly changing so it will bother their organization activity in planning and predicting the target of this organization.
The relations among Vision, Mission, and MCS Vission and Mission Management Control System
The Changing of Vision and Mission Changing is the most important component which is needed by the organization to face the globalization. ( Hawthorne, 2010) This changing can be done by change the organization’s strategy ( Hawthorne, 2010) Vision and mission are the basic thing which can communicate the organization objectives to employees and customers
The reason of changing vision and mission • The level of aspiration • Crisis/Crutial condition • Demand from the coalition • Changing of organization’s life cycle
Why do Vision and Mission need to be Documented? • A new business or organization is just a bunch of ideas • Vision is abstract, thats why must be translated into a series of words that came to be called the Mission, and is written in the company's business plan
The importance of Vision • According to Peter Ducker, a business is not defined by its name, or the declaration of the company's establishment clause, but but is defined by the business mission. • The mission statement includes a clear statement about what you want to target and provide information on how an agency works. • The more complete the mission statement, the easier the mission is translated into operational details.
There is a positive relationship between mission statements and organizational performance- Bart and Baetz (November 1998) • Companies that have a mission statement produces 30% more profits in certain financial standards than companies that do not have them- Business weeks (1999, edition F12)