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Unit 2: Strategy Formulation and Defining Vision

Although such vision statements cannot be accurately measured, they do provide a fundamental Notes
statement of an organisation’s values, aspirations and goals.
Some more examples of vision statements are given in Box 2.2

Box 2.2: Examples of Vision Statements
1. A Coke within arm's reach of everyone on the planet (Coca Cola)

2. Encircle Caterpillar (Komatsu)
3. Become the Premier Company in the World (Motorola)
4. Put a man on the moon by the end of the decade (John F. Kennedy, April 1961)
5. Eliminate what annoys our bankers and customers (Texas Commerce Bank)

6. The one others copy (Mobil)

2.2.3 Characteristics of Vision Statements

As may be seen from the above definitions, many of the characteristics of vision given by these
authors are common such as being clear, desirable, challenging, feasible and easy to communicate.
Nutt and Backoff have identified four generic features of visions that are likely to enhance
organisational performance:
1. Possibility means the vision should entail innovative possibilities for dramatic
organisational improvements.
2. Desirability means the extent to which it draws upon shared organisational norms and
values about the way things should be done.
3. Actionability means the ability of people to see in the vision, actions that they can take
that are relevant to them.

4. Articulation means that the vision has imagery that is powerful enough to communicate
clearly a picture of where the organisation is headed.
According to Thompson and Strickland, some important characteristics of an effective vision
statement are:
1. It must be easily communicable: Everybody should be able to understand it clearly.
2. It must be graphic: It must paint a picture of the kind of company the management is
trying to create.
3. It must be directional: It must say something about the company’s journey or destination.
4. It must be feasible: It must be something which the company can reasonably expect to
achieve in due course of time.
5. It must be focused: It must be specific enough to provide managers with guidance in
making decisions.

6. It must be appealing to the long term interests of the stakeholders.
7. It must be flexible: It must allow company’s future path to change as events unfold and
circumstances change.

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