Question

How do an organization's vision, mission, and goals affect its approach to strategic management and measurement? Discuss how top management teams affect a firm's performance and its ability to innovate, design, bring about effective strategic change.

Answer 1

Ans.

A vision statement sets out a company's long-term goals and aspirations clearly and concisely. A vision statement is intended to inspire and motivate the company's workforce by providing a picture of where the organization is heading. It also provides a reality check for managers, who can compare their strategic objectives and operational plans to the vision statement. If a planned course of action doesn't move the company toward its vision, it may need to be revised.

A mission defines the business sector in which a company operates and sets out its key purpose. It summarizes what the company does and why. It also sets out how the company conducts its business and identifies key stakeholders, such as shareholders, customers and employees. A mission statement helps employees understand where their contribution fits into the company's objectives. It also helps other stakeholders decide whether they want to do business with the organization.The development of vision and mission statements is an essential part of the strategic management process. Having clearly defined the vision and mission of the organization, managers then can set strategic objectives that are aligned with the company's long-term goals. Managers translate these strategic objectives into an operational strategy that can be implemented, monitored and evaluated. The outcome of the evaluation will determine whether any revision of the vision statement, mission statement, objectives or operational strategy is required.A management innovation creates long-lasting advantage when it meets one or more of three conditions: The innovation is based on a novel principle that challenges management orthodoxy; it is systemic, encompassing a range of processes and methods; and it is part of an ongoing program of invention, where progress compounds over time. Three brief cases illustrate the ways in which management innovation can create enduring success.

A management innovation can be defined as a marked departure from traditional management principles, processes, and practices or a departure from customary organizational forms that significantly alters the way the work of management is performed. Put simply, management innovation changes how managers do what they do. And what do managers do? Typically, managerial work includes

• Setting goals and laying out plans;

• Motivating and aligning effort;

• Coordinating and controlling activities;

• Accumulating and allocating resources;

• Acquiring and applying knowledge;

• Building and nurturing relationships;

• Identifying and developing talent;

• Understanding and balancing the demands of outside constituencies.