Case Game: The Case Of Vision Formulation

CASE GAME
The Case Of Vision Formulation
Contd.

THE DISCUSSION

G.L. MIRCHANDANI
CMD, Mirc Electronics

A vision statement is like a beacon of light that beckons people in an organisation towards a common destination. It is a dream that inspires everyone to rise above his or her limits of competence, and surge ahead. Evidently, a vision statement cannot be an extrapolation of what an organisation has achieved so far, and of the road it has already traversed. Abhinav Kumar would do well to keep this in mind while dealing with the dilemma of whether a vision can be built around an existing core proposition. Sure, existing competencies provide an enduring foundation on which to build the future, but a vision should go well beyond the present

The core proposition of value for money is, at best, a good starting point for developing a vision. But, surely, there are a number of other issues that could be an integral part of Total Industries' vision. Suppose a vision statement says that the company would be among the first 3 in each of the businesses it gets into in future. This can not only be a benchmark for organisational performance in future, but it also becomes a powerful motivator at the individual level.

The crucial question: how does one get to know what the company wants to be in future? Ask the people. Ask everyone in the company where he wants the individual business, of which he is a part, to be at the end of a designated period of 5 to 10 years. It is amazing how ordinary individuals, doing seemingly routine work, can become visionaries provided you involve them. It works. This has 2 advantages. You get a wealth of insights into the organisation's capabilities-both current and potential. And, more importantly, ownership of the vision statement, as it finally takes shape, becomes a given.

The role of top management is crucial in ensuring that every employee identifies with it so well that he sees it as his own. Of course, this is by no means an easy task. It is also time-consuming. For instance, it took us 6 months at Onida to develop a formal vision statement. It involved brainstorming sessions, presentations, and articulations at different levels of the organisation.

A word of caution: it is important not to rush through the process. The risk of patchwork is real if there is inadequate preparation and little in-house deliberation. It would be difficult to undo the damage if there is a perception that the vision is the product of imagination of a few people at the top. Equally, it is important for Abhinav Kumar and his team to get the sequencing right. Vision, strategy, structure, staffing... is the order that should be followed. A vision is the basic platform to which every single move of the company in future would be anchored. It is important to get that platform right.

S. SAMPATHKUMAR
Associate Partner, Anderson Consulting

Strategic visioning module is based on a framework of 4 basic components. Who do we seek to become? This is the organisational mission which provides it with a sense of purpose. What goals and results do we want to achieve? This is the target outcome which sets down organisational performance in quantifiable, and measurable parameters.

How will we do what we do? This forms the core of the company's values to which everyone across the organisation would be committed. And, finally, what must we do supremely well? This defines the company's core capabilities and provides the basis for its competitive advantage that always keeps the company a step ahead of competition in the marketplace.

A vision must always be driven from the top. It is true that a vision must be owned by everybody in the organisation. Securing employee buy-in is the only way to ensure its success. But a vision cannot start-off as a bottom-up exercise. If it does, the exercise runs the risk of becoming unstructured, unwieldy, and going off in a tangent. Kumar and his team should first set the boundaries and establish a framework. This task involves 4 steps.

Get the facts. The top management should first get all the data pertaining to industry trends, buyer behaviour, competition, and statutory regulations that govern each business.

Fix knowledge anchors. All assumptions pertaining to the 4 different businesses of Total Industries must be tested at this stage. The possibility of declining margins, demand for new products and services, changes in customer service standards-everything must be examined in detail.

Develop strategic intent. This means finding answers to some basic questions: what is the essence of winning in the marketplace? What are the parameters with which we will measure the success of individual businesses and the company as a whole?

Establish business imperatives. What are the business results that the company should uncompromisingly strive for?

So, what should be the basis of the vision statement of Total Industries? I do not believe that value for money can be the core proposition on which the vision could be based. Intead, it should have a vision hierarchy-a corporate vision that incorporates values, leadership qualities, and design principles, and provides strategic context and direction; an operating unit vision that defines the goals, objectives, and principles that drive each business unit to achieve the corporate vision; and a process vision that defines the process outcomes, capabilities, and organising principles for the core process to meet operational objectives consistent with the corporate strategy.

RAJAN SAXENA
Director, IIM-Indore

This is a typical case of leading change in a family-managed enterprise which has survived successfully in the closed Indian market. Given the increasing complexity of almost every business, it is necessary that Abhinav Kumar acts now. Total Industries needs to formalise its vision statement. Vision is much more than achieving targets of sales turnover and other financials. It is also much more than a statement of values. It reflects the hopes and aspirations of the organisation. Hence, a vision statement need not necessarily be constrained by the existing competencies of the organisation. As a matter of fact, it must challenge them and motivate the organisation to acquire new competencies.

Kumar and his team should focus on envisioning the future of the existing product portfolio of the company. They should examine the structural changes that are likely to take place in the next 10 to 15 years. Today, the most critical forces determining market structures are customers and technology. Kumar and his team should ask some fundamental questions in relation to the future, namely:

What opportunities do we see unfolding for the various businesses of Total Industries?

In which businesses do we see major growth opportunities?

In which particular markets do we see them?

What role do we see for ourselves in those opportunities?

What are the resources and competencies required to fully exploit those opportunities?

What would Total Industries want to be known for in the business history of India?

What kind of organisation culture do we wish to create?

I think the above exercise should be facilitated by an outside expert who has handled similar exercises for diversified companies, preferably in family-managed concerns. While each division may have its own vision statement, there has to be a vision for the organisation.

If value for money is the core proposition, and vision has to be built around it, an aspirational statement like ''To be a leader in providing the ultimate value for money to our customers'' is a good example. Therefore, I believe that the vision for the Total Industries has to be aspirational, unrestricted by its existing core competencies and developed in a consultative, collaborative manner within the organisation, cutting across the organisational hierarchy. A statement of values can then supplement this vision statement.

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