5-Part Process for Building a Business Strategy

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Greetings. Please review the following for your solution. I attempted to keep the resources as general as possible in order to help you apply this to any target company. There were a few areas, however, that I thought a specific example would help illustrate the concept. I chose Southwest Airlines as the example company--it represents a successful business in a struggling industry and I thought it would capture a few effective examples of the ideas.

-Benjamin
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PART ONE: Vision, Mission, Goals

Criteria for Mission Statement
1- Define the purpose (Adams, nd.)
2- Define the client
3- Define core values (McNamara, 2010)
4- Be universally understandable (Zahorsky, 2011).
5- Be as concise as possible (McNamara, nd.)

Criteria for Vision Statement
1- Provide a vivid image of the organization as conceived (Adams, nd.)
2- Provide visionary goals (QuickMBA.com, 1999)
3- Inspire and direct employee action (McNamara, nd.)
4- Summarize client expectations
5- Be as concise as possible

> Building a Mission Statement
The first criterion for a mission statement is to define the purpose of the organization. The overall purpose can be quickly lost to employees consumed by daily tasks. This element should answer the age old question: "why are we/you here?" Clearly defining the organizational purpose allows enterprising employees to tailor their actions to best support the overall goal.

An effective purpose without a target audience, however, is just noise. Thus, the second criteria: defining the organization's client. While this element should not always be taken as an exclusive definition of the client--"it should define the core customer base in order to define the weight of effort.

The actions behind such effort are ultimately guided by the third criteria: the core values of the organization. In many ways, this element is the most important link between strategy and tactics. Core values "represent an individual's highest priorities and deeply held driving forces and beliefs," (Heathfield, 2011). While organizational leadership cannot define personally held priorities and beliefs, it certainly can dictate what those priorities and driving forces are professionally. Effectively aligning these core values with the purpose of the organization allows leaders to also align autonomous decisions across the organization toward the common goal.

The last two criteria: universally understandable, and concise, are closely related--and enable the first three to a great degree. Because effective mission and vision statements are so powerful, they are also often misused--they have often been "hijacked by business school professors and consultants, [and] have largely devolved into fatheaded jargon. Almost no one can figure out what they mean," (Welch, J. & Welch, S, 2008). Ensuring that the mission statement is universally understandable allows all stakeholders--from the lowest ranking employee, all the way to the most sophisticated customer--"to clearly understand the organization. Add to this a general rule of thumb-- the more concise a communication, the more easily understood it becomes--and necessity for the final criteria becomes clear.

> Building a Vision Statement
Another useful tool for strategic management is the vision statement. Similar to the mission statement, the first criterion of a vision statement should be broad. Providing a vivid image of the organization offers tangible goals for stakeholders. Articulating a mental image of the organization as it should be provides holistic direction for employees.

This direction should be forward looking--the second criteria for effective vision statements. If the image constructed in element one describes the ideal organization, then criteria two sets that image moving into the future. Movement--like any progress--requires effort. This is where criteria three steps in. While any business organization motivates people with compensation, effective organizations motivate people with more than money. Establishing inspiration-based effort in employees yields results far beyond anything the time-clock can offer. Focusing this effort brings autonomous employee action in line with strategic planning.

The first three criteria are primarily internally focused, leaving large groups of stakeholders without a clear vision of their future with the organization. Thus, criteria four specifically addresses external stakeholders. Clients--and potential clients--should quickly realize what their expectations of the organization should realistically be. This is a dangerous element of a vision statement--these expectations must be both high, yet realistically attainable over a realistic time horizon. If not, then the vision statement becomes meaningless hyperbole. Wrapping up required criteria for a vision statement - just like the mission statement--is the requirement to be concise. Keeping a vision statement useful requires stakeholders to remember"keeping it short" will enable this (Heathfield, 2011).

>Mission vs. Vision
Strategic management is the modern pastime of kings. This is not to say it is exclusively practiced by statesmen, CEOs, or company presidents--rather, effective practical leadership requires strategic management. Leaders determine --where an organization is going over ...