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Importance of Corporate Vision.

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Corporate Vision and Its Importance

Effective strategic management begins with the organization clearly articulating its vision for the future. The vision of the organization refers to the broad category of long term intentions that the organization wishes to pursue. It is broad, all-inclusive, and futuristic.

However there is no proper, generally accepted definition over the corporate vision. Vision is still not defined in a generally agreed upon manner because various researchers have defined it differently based on the nature of their studies. They also noted that vision is about the future, encourage people to act towards a common goal, provide a better direction and very useful for strategic planning.

Vision is a difficult thing to describe and no wonder most executives find it difficult to formulate a clear vision for their organizations. Vision is the discretionary future state of the organization and it is similar to the concept of strategic intent. However, some common characteristics can be identified among those definitions. Vision is always about a desirable future and it is important for formulating business strategies and strategic planning. It is considered as necessary for leadership, a process of inducing others to achieve a common goal.

Vision is a big picture about the desired future status of the organization. If the vision is simple, then people can directly identify what they have to do in the organization to achieve its goals and objectives. It might therefore be difficult for the organization to actually achieve its vision even in the long term, but it provides the direction and energy to work towards it. Visions characterized by the attributes such as brevity, clarity, stability, abstractness, future orientation, challenge, desirability and ability to inspire, and containing customer and staff satisfaction imagery. A strong correlation can be identified between organizational performances and customer and staff satisfaction when sharing vision among leader and followers. Shared visions directly create a positive impact on overall organizational performance through staff and customer satisfaction.

The vision should be external and market-oriented and should express preferably in aspirational terms. The corporate vision of an organization will be operationalized through the vision statement and it must also be measurable. A quantified vision statement provides a clear focus for strategic management. However many organizations‟ vision are too vague. In addition to that, some of them are not forward-looking, too broad, uninspiring, not distinctive and too reliant on superlatives. An effective worded strategic vision might be graphic, directional, focused, flexible, feasible, desirable and easy to communicate.

Strategic Intent

Strategic Intent is another aspect that was greatly influenced to the area of vision. It also discussed the desired future status of an organization. Therefore many authors have used this word instead of the corporate vision. However, the concept of strategic intent is slightly different from the concept of vision, as vision is a broader concept. Strategic intent is a phenomenon diffused at multiple organizational levels while the vision is more clearly a top management leadership tool.

Corporate Visioning

The concept of visioning varies from the concept of vision because it refers to an activity instead of a thing. A vision is considered the end product of the visioning process. First, three steps of this process are involving realization, creativity and reasoning. The second three steps are action-oriented and basically relate to producing, communicating, persuading and negotiating.

Implementation of Corporate Vision

After developing the corporate vision, it has to be implemented through the strategy executing the process of the organization. Different authors and researchers used different words to explain this process, however many common characteristics can be identified over them. When comparing with the development process, implementation is somewhat difficult and complex.

In accordance with this process, it can be clearly identified a relationship between vision, objectives and corporate strategies. Organizational objectives can be defined as specific results that an organization seeks to achieve based on its vision and mission. Objectives are very essential for the success of any organization because they are given proper direction, focus and control to the business activities. On other hand, the ways of achieving long term objectives are discussed through organizational strategies. They may include geographic expansion, diversification, acquisition, product development, market penetration, liquidation and joint ventures.

*This interview is covered by Swiftnlift Business Magazine

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