Management and Vision Statement
Fall 2013
MBA Semester 1
MB0038 – Management Process and Organisational Behaviour
Q1. (a) A vision statement is a formal statement of what a business wants to be.
According to Collins and Porras, a vision statement should have four parts. What are those four parts?
(b) Differentiate between ‘process’ and ‘tasks’
a) The vision statement has to have four parts namely:
•
•
•
•
Core values,
Core purposes,
The Big Hairy Audacious Goal or BHAG (pronounced as ‘Beehag’) vivid description.
The core values are those things very close to your heart that you will not give up at any cost. Core purpose is the purpose of the organisation, for example, to make furniture. This is something that you want to achieve within the framework of our core values.
The BHAG is about having a goal which qualifies the purpose. For example, to be the best furniture maker in the town in five years or to be the most well known furniture supplier in
India by 2025, etc.
The vivid description should make the entire vision statement very inspiring to all stakeholders. It should be simple and easily understandable. For example, ‘Quit India’ is a very simple statement, but it is very vivid and easily understandable by all. Let us be very clear that the vision statement is meant for the stakeholders and therefore, the importance of the vivid and simple statement. We say that your grandmother should be able to understand it or a twelve-year-old child should be able to understand it and you should test it on them.
This is also called ‘The Grandma’s Test’ or the ’12-Year-Old Test’.
b) Processes
Process is a set of logical activities that lead to some final or interim output. For example, taking pieces of wood, making it smooth, cutting it, making grooves, connecting them, finishing them, and polishing them are processes to create a table. These have to be done in some logical sequence. This is what a process is. Let us now look at Raju’s business itself.
He has to
MBA Semester 1
MB0038 – Management Process and Organisational Behaviour
Q1. (a) A vision statement is a formal statement of what a business wants to be.
According to Collins and Porras, a vision statement should have four parts. What are those four parts?
(b) Differentiate between ‘process’ and ‘tasks’
a) The vision statement has to have four parts namely:
•
•
•
•
Core values,
Core purposes,
The Big Hairy Audacious Goal or BHAG (pronounced as ‘Beehag’) vivid description.
The core values are those things very close to your heart that you will not give up at any cost. Core purpose is the purpose of the organisation, for example, to make furniture. This is something that you want to achieve within the framework of our core values.
The BHAG is about having a goal which qualifies the purpose. For example, to be the best furniture maker in the town in five years or to be the most well known furniture supplier in
India by 2025, etc.
The vivid description should make the entire vision statement very inspiring to all stakeholders. It should be simple and easily understandable. For example, ‘Quit India’ is a very simple statement, but it is very vivid and easily understandable by all. Let us be very clear that the vision statement is meant for the stakeholders and therefore, the importance of the vivid and simple statement. We say that your grandmother should be able to understand it or a twelve-year-old child should be able to understand it and you should test it on them.
This is also called ‘The Grandma’s Test’ or the ’12-Year-Old Test’.
b) Processes
Process is a set of logical activities that lead to some final or interim output. For example, taking pieces of wood, making it smooth, cutting it, making grooves, connecting them, finishing them, and polishing them are processes to create a table. These have to be done in some logical sequence. This is what a process is. Let us now look at Raju’s business itself.
He has to