Strategy Formulation, Mission, and Vision

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Strategy Formulation, Mission, and Vision

• Charlotte Beers at Ogilvy Mather

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Charlotte Beers

• Industry and company context
• Evaluating a vision
• Evaluating the vision formulation process
• Taking charge
• Aligning structures, systems, and processes

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Vision v. mission

• Vision
• Strategic intent
• Broad statement, inherently vague
• NWA, Boys and Girls Clubs of America
• Mission statement
• More specific than vision
• What company will do to achieve its vision
• Ben and Jerrys

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Charlotte Beers

• Robert L. Johnson, Chairman CEO of BET
• What I have always said to people is that you
  must have a vision. As a leader, my goal in life
  is to be able to articulate that vision to people
  at BET, marshal the resources that they need to
  execute that vision, and to be there as a source
  of information or direction if they feel that
  they need more direction or guidance in pursuing
  the vision.
• Academy of Management Executive, Vol. 18, Feb
  2004, p.116

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Charlotte Beers

• Robert L. Johnson, Chairman CEO of BET
• I think any leader first has to have a vision,
  communicate that vision, and then effectively
  build a consensus among people who are part of
  achieving that vision.
• Academy of Management Executive, Vol. 18, Feb
  2004, p.116

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Ogilvy Mathers New Vision
To be the agency most valued by those who most
value brands
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Vision statements from OM

• To be the agency most valued by those who most
  value brands
• We sell, or else
• Just keep doing the same thing better
• Brand Stewardship

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Taking Charge
Establish sense of urgency
Creating a guiding coalition
Establishing a transformational vision and
strategy
Communicating the change vision
Empowering others to act
Creating short-term wins
Consolidating gains and producing even more change
Institutionalize new approach into the culture
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Management v. Leadership
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Management v. Leadership
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Charlotte Beers

• At the end of this case, Beers and her senior
  team still face the management challenge of
  aligning staff, structures, and systems with the
  vision even though her strength doesnt lie in
  the financial minutia
• What should she do next?

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Charlotte Beers

• B Case..

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Charlotte Beers

• With this case, weve seen the
• Complex, often chaotic, process of formulating a
  vision or new strategic direction
• Need for massive communication to align
  constituencies to the new direction
• Need to align structures, systems, and processes
  with the new strategic direction

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Takeaways

• Leaders are master communicators
• Outsiders have the dual challenge of creating
  momentum while building credibility
• Implementation and formulation begin at the same
  time
• VISION ? STRATEGY

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Update

• Continue with Brand Stewardship
• Ogilvy website
• Beers left in 1996 Shelly Lazarus became CEO in
  1997
• 2004 Shelly Lazarus was 26 on Fortunes list
  of 50 Most Powerful Women in Business
• Worked for State Department October 2001 March
  2003
• Hired to improve U.S. image
• Resigned from State Department