BUILDING YOUR COMPANYS VISION By James C Collins

BUILDING YOUR COMPANY’S VISION By James C. Collins and Jerry I. Porras

First This harvard business review article describe the two components of any lasting vision : ■ Core ideology ■ An envisioned future

A COMPANY’S PRACTICES AND STRATEGIES SHOULD CHANGE CONTINUALLY AND ITS CORE IDEOLOGY SHOULD NOT

COMPANIES THAT ENJOY ENDURING SUCCESS HAVE CORE VALUE AND CORE PURPOSE THAT REMAIN FIXED WHILE THEIR BUSINESS STRATEGIES AND PRACTICES ENDLESSLY ADAPT TO A CHANGING WORLD

Core Ideology ■ The enduring character of an organization ■ Consistant identity that transcends product or market life cycle, technological breakthourghs, management fads, and individual leaders.

Core ideology has two parts : ■ Core Value ■ Core Purpose

CORE VALUES The essential and enduring tenents of an organization

Company Core values sony Doesnt have customer servive Disney Doesnt respect for the individual Walmart Doesnt care with the quality HP Doesnt have fokus market

■ The key is not what core values an organization has but that is has core values at all

CORE PURPOSE Is the organizations reason for being

Company Core Purpose sony To experience the joy of advancing and applying technology for the benefit of the public Disney To make people happy Walmart To give ordinary folk the chance to buy the same things as rich people Nike To experience the emotion of competition, winning, and crushing competitors

A PRIMARY ROLE OF CORE IDEOLOGY IS TO GUIDE AND INSPIRE You do not create or set core ideology

An envisioned future has two elements : ■ BHAGs ■ Vivid description

BHAGS BIG, HAIRY, AUDACIOUS GOALS Are ambitious plans that rev up the entire organization

■ A true BHAGs is clear and compelling, serves as unyfying focal point of effort, and acts as a catalyst for team spirit ■ BHAGs that applies to the entire organization and requires 10 to 30 years of effort to complete ■ A BHAGs should not be a sure bet ■ Vision level BHAGs by advising them to think in terms of four broad categories : ØTarget BHAGs ØCommon enemy BHAGs ØRole model BHAGs ØInternal Transformation

VIVID DESCRIPTION Paint a picture of what it will be like to achieve the BHAGs

■ You must translete the vision from word to piture with vivid descriptions of what it will be like to achieve your goal ■ Passion, emotion, and conviction are essential parts of the vivid description ■ Think of the core purpose as the star on the horizon to be chased forever and BHAGs is the montain to be climbed

SONY 1950 Core Values §Elevation of the japanese culture and national status §Being pioneer not following others, doing the impossible §Encouraging individual ability and creativity Core Purpose To experience the sheer joy of innovation and the application of technology for the benefit and pleasure of the general public BHAGs Become the company most know for changing the worldwide poor quality image of japanese products Vivid Description We will create product that become pervasive around the world We will be the first japanese company to go into the US market and distribute directly We will succeed with innovations that US companies have failed at such as the transistor radio Fifty years from now, our brand name will be as well known as any in the world And will signify innovation and quality that riva the most innovative companies anywhere “Made in japan” will mean something fine not something shoddy

THE BASIC DYNAMIC OF VISIONARY COMPANIES IS TO PRESERVE THE CORE AND STIMULATE PROGRESS. IT IS VISION THAT PROVIDE THE CONTEXT