Setting Sights On Business Success
According to a recent survey by Citibank, 66% of small business owners say the recent recession has “forever changed” how they run their business. That seems like a bold statement until one considers how this recession has left reliable economic experts with blurry vision.
Today we operate in a global economy where markets are deeply interconnected. Information is shared faster and with more scrutiny. Traditional market behaviors are no longer predictable based on preceding patterns. The business world has undergone a revolution in the midst of the global recession—a revolution that makes a clear corporate vision priceless.
In most cases, businesses emerging out of this recession have been forced to become very different than they were going into it. Ever-evolving technologies, new government regulations and emerging distribution strategies have permanently altered the corporate landscape.
Do not fret. With any great change lies a breadth of opportunities. In many cases, competition has fallen behind or faded away. Yet the financial crisis and subsequent stock market extremes have created an incredible amount of uncertainty in the collective psyche.
Is there is any wonder why the same Citibank survey found that 81% of respondents voiced uncertainty about how their business will do over the next 12 months?
With all this uncertainty and changing perceptions, should companies just take a wait-and-see attitude? Or should they realize that the world has changed and, the sooner they embrace it, the faster they will recover.
Our belief is that today is a new day. While eight out of 10 competitors are afraid to make moves, we insist the time is now to move forward. Sitting still is falling behind.
The key is to move ahead in a strategic, bold and definitive manner so the entire organization operates with precision and focus. Unfortunately, most organizations do not have such clarity or the means to achieve it.
Over the last 15 years, RiechesBaird has helped more than 200 corporations clarify their brand and act upon its mission. We believe the brand must be built from within, upon a solid foundation, and positioned for future success.
The first questions we ask a CEO or company president are, “What is your vision? Where you want to take this organization?”
Surprisingly the vast majority cannot provide a succinct answer. Instead, we hear three-year sales goals or 30-minute monologues of what the CEO has been debating with key employees. The information is usually interesting and at times inspiring, but rarely speaks to the core principle of a clear vision.
Based on this experience, we tested the understanding of vision-related statements with a key research partner, Socratic Technologies. More than 200 CEOs and CMOs responded to our quantitative and qualitative online survey. The research found ambiguity around the definitions of Vision, Mission, Purpose, Values and Positioning statements. We uncovered widespread confusion and interchangeable definitions of these essential pillars of business strategy.
The majority of respondents used the terms Vision and Mission interchangeably. Therefore the two statements became vessels to contain all the statements typically used to guide the company. Interestingly, 71% of the CEOs agreed that each statement serves a distinct purpose and should not be combined in some overly complex statement.
So, brilliant corporate leaders were inadvertently sabotaging their efforts to provide a clear direction to guide employees’ daily actions.
On the other hand, the term ‘brand positioning’ enjoyed the highest level of understanding with strong agreement about the statement, “A brand helps differentiate the organization from the competition.”
With the insight gained from our research, we set out to gain a broader understanding of the commonly accepted definitions and applications of these statements. It became abundantly obvious there is a lack of clear authority, a consistent viewpoint or set of standards on the topic. When C-Level executives came together to offer a consensus on a company’s future it was rarely communicated properly or shared with their entire organizations a clear destination.
This void was so apparent that, throughout the last year, RiechesBaird developed our own standardized definitions. Audiences ranging from business schools and executive organizations to billion-dollar companies have validated the following definitions—they have also affirmed our description of how they work together.
PURPOSE – It’s WHY we exist. Purpose is bigger and deeper than any business goal. When an organization has a clear cause, it attracts talented personnel, strategic alliances, and loyal customers.
This is not a statement of differentiation and therefore need not be proprietary. Think of it as the emotional trigger that inspires everyone involved to achieve greatness.
Here are some fine examples to consider:
- To preserve and improve human life. – Merck
- To make people happy. – Walt Disney
- To solve unsolved problems innovatively. – 3M
- To give unlimited opportunity to women. – Mary Kay Cosmetics
VISION STATEMENT – It’s WHAT we aim to achieve. A depiction of a desired result that motivates, energizes, and helps an organization describe its destination. There is not a cookie-cutter model for a great vision statement, but rather the culture of an organization is often the driving force of a new Vision.
Here are a few different examples:
Quantitative
- Become a $125 billion company by the year 2000. – Wal-Mart, 1990
- A computer on every desk and in every home; all running Microsoft software. – Microsoft, 1990s
- We will put a man on the moon and return him safely within the decade. – JFK, early 1960s
David-versus-Goliath
- Crush Adidas – Nike, 1960s
- Yamaha wo tsubusu! We will destroy Yamaha! – Honda, 1970s
Role-Model
- Become the Harvard of the West – Stanford University, 1940s
- Become the Nike of the cycling industry – Giro Sport Design, 1986
Internal Transformations
- Become number one or two in every market we serve and revolutionize this company to have the strengths of a big company combined with the leanness and agility of a small company. — GE, 1980s
- Transform this company from a defense contractor into the best-diversified high-tech company in the world. — Rockwell, 1995
- Become the company most known for changing the worldwide poor-quality image of Japanese products. — Sony, 1950s
MISSION STATEMENT – It’s HOW we plan to achieve our Vision. Defines the key outcomes and goals of a company. It determines the path to best achieve the Vision Statement.
Examples of clear, actionable and attainable Mission Statements:
- To combine aggressive strategic marketing with quality products and services at competitive prices to provide the best insurance value for consumers. — Aflac Insurance
- At Microsoft, we work to help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible
- The Mission of the Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.
VALUES – They are what we stand for and HOW we behave. Describes the traits and qualities that shape daily actions with the internal community, customers, and suppliers. These values shape corporate culture when they become deeply held driving forces and high priorities.
We strongly recommend going beyond the typical list of: respect, integrity, teamwork, communication etc. You want to personalize these aspects to reflect and guide your unique organizational culture.
For example, Zappos achieved great success by differentiating through service. This was done with a deep understanding of how culture can align and drive an organization.
“We've aligned the entire organization around one mission: to provide the best customer service possible. Internally, we call this our WOW philosophy…Zappos is a service company that just happens to sell shoes. My passion is delivering the best customer service. In 10 years, people won’t realize that Zappos sells shoes.” – Tony Hsieh, CEO, Zappos.
BRAND POSITIONING – It’s HOW we differentiate from our competition. This is a statement of a unique value proposition to a company’s primary audiences. This simple and concisely written statement conveys the organization’s supported point of distinction relative to competitors. The brand is not a logo, tagline or ad campaign, but rather the platform from which all marketing communications emanate.
So how does Brand Positioning guide a new corporate Vision?
The process for developing a strategic brand position offers a comprehensive internal and external view providing deep insights into a company. By understanding the company’s competitive differentiation, it becomes clearer to see what opportunities exist and where the company could go.
The world around us will never stop moving forward and challenging us to evolve in order to remain successful. The key principles behind these core statements do not change when times do, but rather stand the test of time for your business.
Rieches Baird possesses great experience, passion and expertise for improving your company’s vision. For additional insights please check out our new blog, BrandingBusiness.com.
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