Stakeholders and the Corporate Mission

1
Stakeholders and the Corporate Mission

• Session 3

2
Stakeholders and strategy
Source HBR Campbell
3
Mission Statement

• Cultural glue that enables an organization to
  function as a collective entity (Fahrnam)
• Vision
• Strategic Intent
• Customer Orientation, Definition of Business
• Values
• Goals

4
Does your company have a mission?

• Which best describes the mission where you work?
• Employee focused 0.8
• Risk-taking 2.5
• Product/service-focused 21.5
• Customer-focused 28.4
• Mission? What mission? 46.5

Source Fun with useless numbers dept, Dallas
Morning News
5
Mission Statements

• Its our responsibility to synergistically supply
  virtual leadership skills as well as to
  continually build prospective paradigms for 100
  customer satisfaction.
• Mission Statement Generator at www.dilbertzone.com
  
• Create your own mission statement
• To boldly go where no man has gone before
• Star Trek

Source NYTimes, www.dilbertzone.com
6
Articulating a Vision
Source Collins Porras, HBR
7

• Vision
• To empower people through great software any
  time, any place and on any device
• Mission
• A computer on every desk in every home, all
  running Microsoft software

Source Harvard Management Update,
Microsoft web site
8
Mission statements
Source Ben Sargent, New York Times
9
Goals

• Characteristics
• Precise and measurable
• Focus on important issues
• Challenging but realistic
• Must have deadlines
• Maximizing shareholder wealth
• Short term v/s long term

10
Why do we need clear goals?
Source Tom Toles, NY Times
11
Balanced scorecards

• Link corporate goals to specific strategic and
  operating targets
• How do we look to shareholders?
• How do customers see us?
• What must we excel at?
• Can we continue to improve and create value?

Source Kaplan Norton
12
Turning Mission to Action

• Iteration
• Awareness
• Fords Quality is Job One
• Understanding
• Hewlett-Packard The HP Way
• TI Project Easy
• Commitment
• Action

Source Harvard Business Review, Collins
13
Corporate Governance

• On the job consumption
• Governance mechanisms
• Board of Directors
• Stock based compensation
• Corporate takeovers
• Leveraged buyouts

14
Strategy And Ethics

• Johnson Johnson
• Crisis management at the corporate level James
  Burke CEO
• Immediate withdrawal of Tylenol capsules,
  comprehensive communication.
• Result Enhanced reputation

• Jack in the Box
• Attempt to shift responsibility to others
• Linking offer of financial help with lawsuit
  waivers
• Result Tarnished reputation and slump in sales