mce 7. establishing direction

strategy

coordinated set of actions that managers take to outperform competitors and and achieve superior success

strategy provides __ __*and*__ _______

direction & guidance

what does strategy require acronym

PAVC

PAVC

PAVC is what strategy requires

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Planning

Accumen

Visioning

Courage

__ __hits a target no one else can hit, but__ _ ***hits a target no one else can see***

talent ; genius

what is accumen

solid judgement

what should be more enduring

values

visions

missions

objectives

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values

visions

missions

what should change more frequently

values

visions

missions

objectives

objectives

what taps into INTRINSIC motivational channel

values

visions

missionsq

what taps into EXTRINSIC motivational channel

objectives

intrinsic motivational channel

it is generally satisfiying. aligns with my values. or something important to me.its generally satisfying or fulfills some value so we are pursuing i

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internal rewards

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EXTRINSIC motivational channel

like external factors like promotion . external reward. because objectives are more tangible

visions

a solid vision creates an idealized FUTURE state for the organization that everyone is motivated to pursue wholeheardetly

visions tell people

1) where organization is headed

2) why its moving in that direction

3) makes members want to do everything they can to get it there

visions are centered around

our needds and values and addresse themwhe

when thinking of visioni think

IDEALIZED FUTURE STATE

fog of the future

no matter how much you predict and analyze and make trends you cannot fully see the future and where organization is headed.

visions generate

spontaneous energy

visions need to balance betweenn being __ and _

focused and general

visions should be focused enough to

enough to guide decisions and actions

(generate spontanneous energy)

visions should be general enough to

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allow innovation and creativity in strategies for attaining it

(remain flexible as environment changes)

  

visions should NOT:

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* Be generic, vague, or run on and on
* Be a complicated plan with quantitative objectives or detailed action steps 
* Use overly broad language, bland language, or superlatives 
* Emphasize *immediate* tangible benefits or dwell on the present 
* Be a wishful fantasy

visions SHOULD

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* Meaningful - appeal to the values, hopes and ideals of members
* Make it memorable 
* Be simple and idealistic
* Keep it focused 
* Picture a desirable future
* Forward thinking and directional 
* Emphasize *distant* ideological objectives 
* Include “wiggle room” 
* Be challenging but realistic (credible) 

Most organizations have these __undesirable__ characteristics in their visions 

* Generic, feel-good statements
* “To become a global leader and the first choice for customers in every market we serve”
* General market quests 
* “to be the market leader in…” 
* “to be the most innovative…” 
* Vague and unrevealing statements 
* “To fill the earth with light and the warmth of hospitality” (Hilton) 

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misson statement

describes purpose of organinzationn

how is mission statement different from vision

mission talks about current and immediate. visioon talks about future. mission statements tend to be more techiincal

how is vision and mission similar

both tap into intrinsic channel

value statement

list of key values or idealogical themes considered important. LISTho

how is vision and value statement different

vision creates shape and grows out of value. moore clearly explains than a list

slogans

statement used to summarize and communicate values into simmple terms. HO

how is slogan and vision different

vision is larger and more encompasiing and comprehensive

strategic / financial objectives

tangible outcomes or results to be achieved.

project objectives

defined in terms of succesful completion of complex activtiesho

how are objectives and vision statements different

objectis are tangible in nature. way to define if we succesfully did it or ont. vision has no way to measure. objectives motivate extrinsically.

what is most enduring element of an organization

values

chain between all of elementss

values → visions → missions → objectives

is there a way to measure if vision was completed or succesful

NO. no tangible way to meausre.

key steps to creating a clear and compelling vision ACROYNM

IPET

IPET

steps to creating vision

1) imagine the invisible

2) paint the picture

3) engage others

4) test your knowledge

1) imagine the invisible

This state does not exist, it is not tangible. 

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As the leader, it is up to ***you*** to look ahead and see this ***positive future state*** in your mind’s eye.  

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__Must consider__: 

* The ***needs*** of the people 
* What the people ***value*** 
* What is going to get the people ***moving*** 

2) paint the picture

Such that everyone else can ***see the same picture*** in the same way that you have in your mind.

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Must be ***crystal clear***.  

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T__ips and tricks__: 

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* Think about what they’re thinking about 
* Carefully choose your ***signs, symbols,*** and ***language***
* Consider length
* Relentlessly repeat 

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one thing to envision in your head. but whole other thing to communicate it to stakeholders. u do this by painting the picture. the more clear picture the clearer painting you can see. 

3) engage others

Get others to buy into the vision. 

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__How do you get others on board__?  

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* Let them know ***exactly*** how they fit in 
* Create freedom 
* Give them something to talk about

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4\. Test your vision 

__ask yourself__:

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* Is my vision easy for other people to see? 
* Does my vision stimulate their interest and generate *spontaneous energy*? 
* Are people sharing my vision? 
* Is my vision realistic? 
* Is my vision so clear that people can easily understand and share? 
* Would everyone continue to pursue this vision even in my absence? 
* Avoiding should nots and implementing shoulds? 

mission

Describe the organization’s *current* business operations and purpose

mission clearly states:

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1. Organization’s products/services
2. Constituent group and market the org serves 
3. Constituent needs that org seeks to satisfy
4. Unique identity of org  

what is included in tier 1 of mission statement (MUST HAVES FOR IT TO BE CONSIDERED A MMISSION STATEMENT)

PPMM

PRODUCTS

POPULATIONS

MARKETS

mission: products

What are the organizations major products or services? What do you provide? 

mission: populations

Who are the organization’s customer or targeted population?  (non geographic)

mission: markets

Where does the organization compete geographically? 

what is included in tier 2 of mission statement (nice to haves. show uniqueness)

PSS

Philosophy

Self-concept

Survival

mission: philosophy

organizations basic beliefs, values, ethical prioritiess

mission: self concept

organizations major competitive advantage or core competencies

mission: survival

how will organization sustain

what is in tier 3 of mission statement (only incldue if relevant can be harmful if you lie)

PV

public image

view on employees

mission: public image

how responsive to societal & environemntal concrnsm

mission: view on empoloyees

are emplooyees an asset

core values

A set of values that guide the actions and behaviors of organizational members 

* typically 4-8
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values

beliefs traits behavioral norms that company personell are expected to display in conducting business

behavioral norms:

expectations set within any given culture

* culture naturally develops anytime ppl interact.
* expectation is that employees will behave in ways that grow from value

in strong culture

behavioral norms enforced heavily

in weak culture

norms not so enforced

what drives culture

values

what does culture enforce

behavior

how does culture develop

culture develops naturally anytime people interact with each other

Espoused values:

what an organization **says** it values. EXPLICITLY STATED,

Enacted values:

the values you see a company actually enacting/practicing

* from behavior
*  

Value congruence:

when these two align

value incongrunece

actions that violate espoused values

what happens when there is a lack of value congruence

violates perception of trust which is at an all time low right now.

value incongruence impact on emmployees

reduced affective committmment: feelings about organization

turnover: ppl quit more often

recruitment problem: talent goes to better organizations

value incongruence impact on consumers

compromises reputationn, impact on brand loyalt, word of mouth

how do you prioritize value congruence? 

value should be the anchor. remainn flexible but cannot stray to far away from value. make sure decisions remain with values. 

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* we should emphasize value based behavioral norms. 
* we want to be deliberate on way culture gets established. 
* visions and mmissions grow out of values they are most lasting.

objectives

organizations specific performance target and specific results

purpose of objective

convert vision and mission into specific performance targets. objectives are more tangible in nature and you can track / measure them.

2 types of objectives

financial & strategic

financial objectives

communicate management goals for financial perforamnce s

strategic objectives

lay out target outcomes concerning a companys market standing, compettive positions and future business prospects

what type of objective?

Profit margins of *X* percent 

financial objective

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what type of objective?

Deriving *X* percent of revenues from the sale of a new product introduced within past five years

strategic

what type of objective

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* Overtaking key competitors on product performance, quality, or customer service

strategic

what type of objective

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* Annual increases in after-tax profits of *X* percent 

financial

what type of objective

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* An *X* percent increase in annual revenues 

financial w

what type of objective

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* Winning *X* percent market share

strategic

what type of objective shoudl you prioritize

BOTH. dont just focus on 1 you need both.

which objectives are more long term

strategic

which objectivces are more short term

financial

what happens if you priortize just financial

you become short sighed and cann miss massive oppurutnies

new businesses tend to prioritze which objectives

financial cuz they are short term

objectives must be which 3 things:

specific, quantifiable, measurable

* Concrete, measurable objectives:


*  Focus organizational attention and align actions throughout organization
*  Serve as yardsticks for tracking organizational performance and progress
*  Motivate employees to expend greater effort and perform at a high level 

goal setting theory:

types of goals we st impact our motivations.

goals shoudl be SPECIFIC and DIFFICULT

more specific and difficult the goal the more motivated you will be to achieve the goal

what does SMART goals stand for

specific, measurable, attaniable, relevant, time based

SMART goal specific:

do i know exactly what im supposed to be doing

* if i am guessingn ;> not specific enough. 

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*  use clear , simple, specific language
* want to be very clear abotu what we are doing.

SMART goal measurable

always start with to verb

* want to make sure verb is measurable in some meaningful way. 

ex. to learn coding

* dont know what to do 
* and dont know how to measure learning. 
* instead: too read one book in coding or take one master class in coding 

SMART goal attainable

can task be realistically donne with resources that I have

SMART goal relevant

is this relevant to organization and its mmission

SMART goal time based

does it have a deadline or window

Yerkes Dodson Law

goal of a difficulty wiithh an optimal level of stress will have best performance.

what is on x axis of Yerkes Dodsonn Law

Arousal

What is on y axis of Yerkes Dodsonn Law

Performance

EU stress

optimal level of stress . good stress.

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if task not hard enough: too borinng

if task too challenging: not motivated to do it.

need to be in optimal level