CHAPTER TWO

Vision,
Mission,
Objectives,
and Goals
Chapter objectives
At the end of this course you will be able to:
Define the concept of vision, mission
and values of a business
Able to develop vision and mission statements;
describe the importance of mission,
vision and values
Explain the nature of business mission
Illustrate components of mission
statement
Able to set goals and objectives
Asking brain storming question

Take 5 minutes and write down your

vision on a piece of paper.
Vision

It is especially important for

managers and executives in
any organization to agree on
the basic vision that the firm
strives to achieve in the long
term.

A vision statement
“What do we want to
should answer the
become?”
basic question,
Vision
 A vision or strategic intent is a view of a
future reality that the organization
seeks.
Vision is also defined as a realistic,

credible, attractive future for an

organization.

 Vision is a mental journey from

known to the unknown, creating the
future from a montage of current
facts, hopes, dreams, threats and
opportunities.
What is a Vision? Cont’d…

We are more likely to reach an

objective if we can see it and can
imagine the steps to reach it.
Visioning is the process of developing Visioning is a common strategy in
a vivid picture of the future. sports.
A vision can be: ¤Olympic skaters imagine
¤a mental picture of an "ideal" themselves going through the
organization. steps and landing a perfect jump.
¤an image of the future we seek to
create vision is often expressed in a
vision statement.
 Creating a Vision
• It lays out the company’s strategic course in preparing
Managers should envision for the future.
where the org. should be • A strategic vision provides a panoramic(wide) view
of “where we are going” and why this direction and
headed in the long run & strategic path makes good business sense
understand how it might get • In general, the corporate vision can be defined
there. considering internal & external changes

A strategic vision describes

the route a company
intends to take in
developing and
strengthening its business.
 Characteristics of Effective/Good Vision:
Inspirational: A good vision should inspire and motivate
stakeholders by painting a compelling and attractive future.
Clear and Concise: The vision statement should be concise
and easy to understand, communicating the organization's
purpose and direction clearly.

Challenging: An effective vision should set ambitious

goals that push the organization beyond its current
capabilities.

Timeless: A good vision remains relevant and inspiring over

time, guiding the organization's actions and decisions for the
long term.
Alignment: The vision should align with the organization's
values, culture, and strategic priorities.
 Example of Vision Statement
Vision
• Dire Dawa University aspires to be a premium choice in Ethiopia and among
the top ten Applied Science Universities in Africa by 2030.

•Commercial Bank of Ethiopia’s Vision

•“To become a world class commercial bank by the year 2025.”
• eBay
• Provide a global trading platform where practically anyone can trade
practically anything.
 A Vision Can Fail
• Though vision is important it can fail:
If it reflects merely the leaders internal needs
If internal & external factors are not analyzed well

Due to lack of acceptance by the market & by those who implement it

Ignores stakeholders needs

 Miscalculates the resources needed and available to achieve it

 A Good Strategic Vision Is Managerially Useful

 A well-conceived, well-communicated vision

Points an organization in a particular direction
Sets forth a strategic path for it to follow in preparing for the future
Molds organizational identity
Communicates management’s aspirations to stakeholders
Helps steer the energies of company personnel in a common
direction.
The Mission
Mission is defined as “the fundamental purpose of the
organization & its scope of operation.”

 Organization mission is written in terms of the general

set of products & services the organization provides &
the markets & clients it serves.

Clear mission statement serves to define the mandates

(the context within which the organization operates).

 Operative mandates are subject to continuous

alteration & expansion.
• It clarifies why the organization exists, what it does,
and who it serves.
• The mission statement provides a broad framework
and guides decision-making within the organization.
Mission

Your organization’s mission statement is a concise introduction to its

work.

It describes an organization in terms of its:

• Purpose: what the organization seeks to accomplish (WHY
DO WE EXIST?)
• Target Audience: the target group or beneficiaries of the
organization’s work (WHO DO WE SERVE?)
• Business: the main method or activity through which the
organization tries to fulfill this purpose (WHAT SERVICES
DO WE PROVIDE and HOW DO WE GO ABOUT
PROVIDING THEM?)
Characteristics of Effective/Good Mission:
• Clear and Specific: A good mission statement clearly
communicates the organization's core activities and its target
audience.
• Purposeful: The mission statement should express the
organization's underlying purpose and the value it brings to its
stakeholders.
• Realistic: An effective mission is grounded in the
organization's capabilities and reflects its current and potential
activities.
• Differentiating: A good mission statement should highlight
what makes the organization unique and distinct from its
competitors.
• Inspiring: The mission statement should generate
enthusiasm and commitment among employees and
stakeholders.
Functions of a Mission
• Mission serves several
functions:
 Ensures unanimity of purpose

 Provides a basis for motivation

 Allocates organization’s resources

 Establishes the necessary organizational climate

Serves as a basis for those who can identify with
the organization

 Facilitates the translation of objectives & goals

U Example Mission Statement
’
s

m
i
s
s
i
o • CBE’s Mission
We are committed to best realize stakeholders' needs through enhanced
n financial intermediation globally and supporting national development
priorities, by deploying highly motivated, skilled and disciplined
employees as well as state-of-the- art technology. We strongly believe
that winning the public confidence is the basis of our success.
 Vision Vs Mission

Vision:
• ¤An image of the future we seek to
create.
• ¤ A vision statement describes Mission = purpose, reason for being,
the role of the organization in the
where an organization wants to
society.
see itself in the future; in the
next 10 or 20 years if everything
goes as hoped.
 Vision Vs Mission
• A strategic vision focuses on a •A company’s mission statement typically
firm’s future strategic course – “the focuses on “who we are, what we do, and why
direction we are headed” we are here”.

It describes the company’s present business

It describes what a company’s future Current products or services
business makeup will be as concerns Buyer needs it is seeking to serve

• ► Products/ services Customer groups it sells to

Current technological/ business
• ► Customers
capabilities
• ► Markets
• ► Technologies
 Values

Every organization should be guided by a set of values.

• Values are often rooted in ethical themes, such as honesty, trust, integrity, respect, fairness, etc.
• Values should be applicable across the entire organization

Values are beliefs which your organization's members hold in common and endeavor to put into practice.

The values guide your organization's members in performing their work.

Specifically, you should ask,

"What are the basic beliefs that we share as an organization?"

 Values Cont’d…
Values may be
appropriate for
• Examples of values include: a commitment to
certain best excellent services, innovation, diversity,
management creativity, honesty, integrity, and so on.
• By developing a written statement of the
practices – best values of the organization, group members
in terms of have a chance to contribute to the articulation
quality, of these values, as well as to evaluate how
well their personal values and motivation
exceptional match those of the organization.
customer
service, etc.
Examples Cont’d…..

• CBE’s Values
• Corporate Citizenship
• Customer Satisfaction
• Quality Service
• Innovation
• Teamwork
• Integrity
• Employees
• Public Confidence
 Examples Cont’d…..
• Ethiopian’s Value Statements
As an airline, safety is our first priority.

 ET is a high performance and learning organization.

 We are an equal opportunity employer

 We treat internal and external customers the way we would want to be treated
 Strategic Goals and Objectives
• What are Strategic Goals?
 Strategic goals are statements of what you wish to achieve over the period of the strategic plan (e.g.
over the next years, five years, ten years.)

 Goals are specific, measurable, and time-bound targets or outcomes that organizations aim to
achieve.
 Goals are derived from the organization's mission and vision and provide a roadmap for progress.

• Strategic Goals and Objectives

They reflect the analysis you do that starts with
creating a vision,
a mission statement, and then
your analysis of your environment, strengths, weaknesses, opportunities and threats.
What are Objectives and are They Different from Strategic Goals

Objectives statements

Objectives are specific, actionable steps or milestones that organizations set to accomplish their
goals. Objectives are more detailed and tangible than goals, breaking them down into manageable
tasks.

are usually specific (they are actually a particular kind of goal) that contribute to the
achievement of "bigger" goals.

In other words they are actually goals, but they are more specific.

Another term for objectives within a strategic planning framework is to call these "enabling
goals", since, if you hit all your objectives, they will contribute to the achievement of the larger
strategic goal(s), they enable.
Objective Setting
Quantification (if possible) of more precise statement of the goal.
Indicate how the mission can be achieved
Represent specific planned levels of achievement
Provide precise points or states to be achieved
 Objective Setting
 Allow review and appraisal of achievement
Make clear:


 What is to be accomplished
 How much is to be accomplished
 By when it is to be accomplished
 By whom it is to be accomplished

•In short an objective should be Specific, Measurable, Achievable, Relevant and Time
bound (SMART)
Specificity indicates clearly what needs to be achieved. Example: reduce delay.

Measurability indicates the possibility to determine if the desired condition is fulfilled.

Example: Reduce delays by 40% by the end of 2012.

Achievability indicates a consensus and commitment to the objectives among the

major stakeholders
Objective Setting Cont’d…

Relevance indicates objectives need to be achievable.

 It answers feasibility, the availability of authority of the managers

and the means of realization.

Time bound indicates a clear understanding of

 the time scales
associated with each objective as defined.
 It is difficult to have commitment without time frame.

Chapter Two Mahteb W.

 Goals vs. Objectives Summary

GOALS OBJECTIVES
• Very short statement, few words • Longer statement, more descriptive

• Broad in scope
• Narrow in scope
• Directly relates to the Mission
Statement • Indirectly relates to the Mission
Statement

• Covers long time period (such as 10 • Covers short time period (such 1 year
years) budget cycle)
 2.5 Goals vs Objectives with Respective Examples:
Goals:
• Increase market share by 15% within the next two years.
• Improve customer satisfaction ratings to 90% within the next
quarter.
• Expand the product line to include three new offerings by the end
of the year.
• Objectives (aligned with the above goals):
• Conduct market research to identify target customer segments by
the end of the month.
• Implement a customer feedback system to gather and analyze
satisfaction data within two weeks.
• Research and develop new product concepts within six months.
F
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G
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• Vision Formulation:
• Brainstorm potential futures and desired outcomes.
• Consider long-term aspirations and the organization's purpose.
• Involve key stakeholders and gather input.

• Mission Formulation:
• Define the organization's fundamental purpose.
• Identify the target audience and the value proposition.
• Ensure alignment with the vision and core values.
• Goal Setting:
• Derive goals from the vision and mission.
• Make goals specific, measurable, achievable, relevant, and
time-bound (SMART).
• Objective Setting:
• Break down goals into actionable and measurable
objectives.
• Assign responsibilities and timelines for each objective.
• Ensure objectives are aligned with the goals and contribute
to their achievement.