A tried and true organizing step is to create a mission statement. A mission statement, which is also sometimes called a purpose statement, expresses what the organization is about, it's theme if you will, its hallmark.
The mission of Franklin Covey is, "We enable greatness in people and organizations everywhere." For Wal-Mart it is: "We save people money so they can live better." For Patagonia, it is: "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis."
Statements such as these - and the many that are longer and more involved - can be descriptive and inspiring. They look good on the wall, the business card and the page in the annual report. They are "feel good" words.
However, in and of themselves they are insufficient. They are by their very nature about the current organization. They lack specificity. They tend not to drive change.
Certainly, saying "Here's what we do" is of value as a descriptor for external and internal use. It reminds all of why the organization exists and what business it is in. That does have focusing effects.
The rub is that strategic planning starts with the fundamental premise that the current state of the organization is not ideal and that what the organization is doing now is sub optimal. The organization may (or may not) be in a desirable business - what the mission statement describes - but how it is going about that business and its expectations about that business and where it is trying to go with that business likely are not ideal.
A mission statement describes what is. A vision statement describes what can be.
A compelling vision statement is most important in laying out that "shining city on a hill" where the organization wants to go. It starts with the premise that the future can be better and the organization needs to act and change to get there. Putting a compelling vision of the future out there enables every possible action of the organization to be evaluated: How will this get us there? It makes the directional changes and investments necessary for positive change more apparent.
Yes, indeed, craft your mission statement and let all know what business you are in, your hallmark. But please don't stop there. Think about that great place the organization can be 3-5-7 years in the future, write a compelling vision statement, and use that vision statement to drive your organization forward to a better future.
In a study of 280 companies, firms whose top management had a high commitment to strategic planning reported 11% better net income than did those with lower commitment. M3 Planning
Only 11% of executives strongly believe that strategic planning is worth the effort. Mankins & Steele
In a study of 1,004 small businesses, the presence of a strategic plan was highly correlated with growth in revenues of the business. Barbara Orser
Strategic Planning Focus of the Week: Re-Plan When Things Change
When during the year it becomes obvious the strategic plan is way off target or the fundamentals on which the plan is predicated change, patchwork changes in the action steps are not sufficient. It’s time to restart the planning process, lest the organizational planning effort fail or bring bad results.
The following types of developments illustrate what can lead to the need to begin to plan anew:
Key market deteriorates (such as the automobile market after the stock market melt down).
Funding pulled (as happened to many companies when bank lending froze).
Critical flaw found in vision/strategies.
Vision/strategies found insufficient to move the organization to where it needs to go.
New information makes it clear the vision is not where the organization should aspire to go (for example, being a premier mortgage banker might have been a great vision, before the housing crash but not after).
Key products or services suddenly become outmoded (as when Apple transformed the cell phone).
So how should the re-planning be conducted? Start at the point where the current strategic plan does not work.
Strategic Vision of the Week
DuPont: "Our vision is to be the world's most dynamic science company, creating sustainable solutions essential to a better, safer and healthier life for people everywhere."
Strategic Planning Quote of the Week
“It is not necessary to change. Survival is not mandatory.” - W. Edwards Deming
Our vision is every organization creates a plan with strategies and action steps leading to greater success.
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Don't delay! Without a strategic vision and a plan to get there, your future is not as bright as it can be.
