"Contributions to Economics" is an academic journal with the

International Standard Serial Number

ISSN 16968360

VALUES
Rodeloy Castellanos Cruz(CV)
GMG Business Group, Cuba.
[email protected]

SUMMARY

The first three major steps of strategic thinking: the statement

Values, Mission and Vision. Even though they represent quite well-known aspects, it is worth highlighting
the frequent errors, the significant value of these formulations, their central place within the
strategic management. It is hard to imagine documents with greater strategic value and so
internally intertwined like the statement of strategic values, mission, and vision. This
work thoroughly explores the entire process of making such statements, examples
practical and precise alerts constitute its content.

Strategic Thinking, Values, Mission, Vision, Corporate Culture

To cite this article, you can use the following format:

Castellanos Cruz, R.: "Values-Mission-Vision" in Contributions to the Economy, October 2007.

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1. Strategic Values

The daily management of companies does not appeal, as one would expect, to their strategic values.
These are not even defined most of the time. Perhaps someone confuses them with the
values embodied in the organization's code of ethics or conduct, those ways of
desired behaviors that shape corporate culture, but it is not strictly about
this.

The Strategic Values represent the convictions or philosophy of the Senior Management regarding
what will lead us to success, considering both the present and the future. These values, it is easy
discover it, they reveal the fundamental features of what business strategy is, they start from
this reflection.

Everything that can provide us with a consistent competitive advantage could translate into value.
the company's strategic. Having a clear and open agreement on these values will help
establish the significant priorities of the organization, its areas of effort, and levels of
tolerance regarding deviations; it will allow setting expectations and how to communicate them to
Moreover, in which businesses to intervene and how to manage (Morrisey, Ch. 3)1
A list of strategic values is a reference material at hand when placing in
the strategy is underway. Some or all of the identified values will be formulated directly or
indirectly in the mission statement. A mission without incorporated values loses power.
call and credibility before the Client. The vision statement may also be based
entirely in the values and even, the very tactical and long-term planning will use the list of
values as a useful reference resource.

There is an almost infinite number of factors that could be considered strategic values. Some are
more stable and universal while others have a rather situational character. For their good
the organization should focus on eight to ten core values and these should be what
They have the greatest impact on their future.

Let's take a look at a set of different values that are considered useful:

Operational excellence: The concept of process effectiveness currently occupies a place of

first line in business management. Reengineering, ISO Standards, COSO Report,
Business Improvement..., all these models and more require a broad and rational
response capacity on the part of the organization. To be excellent, agile, and reliable in its
processes constitute a strategic value for most institutions.

Learning ability: The ability to learn, to move from Problem Solving

Organizational learning, where the entire company and especially Top Management achieves
questioning and rethinking their assumptions is one of the most outstanding, necessary, and
insisted upon by the entire business community. We are likely talking about a value
universal strategic2.

Human Resources: When we understand that people are the most important asset and
we take on their total development and well-being. For those organizations that operate
fundamentally with the intellectual capital of its people, this value can have a character
markedly strategic.

Commitment to the customer: This value implies a position of total commitment to the customer.
Nothing is more important and everything can wait if it is about taking care of him. Total Commitment can
to be the hallmark of many activities.

Ethics: It is one of those universally determined values. We all expect and need it.
trust that we are dealing with someone who operates their business ethically, understood as
transparency, sincerity, commitment to one's word, etc.

Quality: Just like ethics, this is also a predetermined value. It is not possible to think of its
absence in the contemporary market.

Innovation: It is a value associated with high costs and risks. Being at the 'critical point'
it implies that we will get ahead of the competition and that we are willing to experiment with
unverified ideas. This is the characteristic of many pioneering industries in the field of
Computer science.

Image: When it is important for the company to be identified by its distinctive features or
leadership. It is the opposite of remaining in anonymity, opening up only to those with whom you
does business. The Image value normally entails significant expenses for the concept of
advertising, promotions, and public relations.

Safety: This is a fundamental value within the chemical industry, mining, and transportation.
In a company where accidents are rare, perhaps this is not a strategic value.
Environment: Like Security, this value will be of utmost importance for industries with
strong impact on the environment, either through its products or processes.

Fun: More and more organizations find it productive for their workplaces to be
seen by customers, employees, or both as fun places3.

Organizational structure: The value of an open, decentralized structure, with a minimum

of control; or the centralization with most important decisions made at the levels
superiors of the hierarchy, are options that some companies may truly have
strategic weight.

Each value collected in the resulting list from our analysis needs to be specified in a
brief statement (value declaration) that establishes the company's position on this.
The way of expressing it must also be stimulating.

Many company slogans are nothing more than a declaration of a very strategic value.
special with which they hope to position themselves in the minds of consumers.

The relevance of strategic values is understood; they tell us what is important to

us in terms of gaining competitive advantage. If we are going to look for a definition the most
we can say that they are the cultural support of all our decisions and actions
strategic, the optimal mold of our behavior. In this sense, the Strategic Values
they constitute a very peculiar and distinctive subset, as they weave the Culture of the company,
Critical Success Factors.

How did we come to define the list of Strategic Values? We will follow the principle of working in
team, the search for consensus, and a good way is to use the findings we made
during the Strategic Diagnosis, as well as using the previous list of values
of verification.

Each group member brings their answers in advance, through a rating scale.
preferably. The answers are presented one at a time, discussed without judging their relevance or
No, we only allow ourselves to seek clarifications.

The debate will allow us to gradually approach the definitive list, based on the criterion of
select those values that best support the company for the future. It will always be
It is possible and necessary to enrich the proposal prior to the analysis with as many values as deemed appropriate.

Mission

The declaration of strategic values is in itself a significant achievement for the company, but it is so
just a very important step on the way. Once we have an agreement about our
We must focus on the correct formulation of the company's mission.

G. Morrisey (1995) states: "Without fear of being wrong, I believe that the preparation of the
The mission statement of your company is the most important step you can take in the whole
"planning process" (Morrisey, Chap. 4)

A company without a mission has no identity or direction. In the mission statement, everything is assimilated.
strategic thinking, all our capacity for analysis and diagnosis, and the clear intuition of
what could the future be.
This statement is an assertion that describes the concept of the company, the nature of
business, the reason we are in it, whom we serve, and the principles and values under which
we intend to operate.

Why do we need a mission statement? Because it will help us maintain clarity and
consistency of purpose, because it provides a framework for all decisions
important steps that will need to be taken. It will enable obtaining the commitment of everyone through a
clear communication of the company's business concept. It can also serve as
public relations document if it has been properly prepared winning us the
understanding and support from external individuals who are important for success
organization.

A good mission steers clear of clichéd phrases that strip it of credibility. A good mission does not
define what we will be or what we will become (this is the vision) It is broad in its
scope to allow the study and generation of a wide range of objectives and strategies
feasible without restraining people's creativity, but it doesn't mean it is so generic that it distinguishes
little or nothing to the company.

A well-designed mission should not be confused with the company's goals; the mission speaks of
The benefit we offer to the client focuses on their perspective. It is the client and only them who
decide what an organization is. For this very reason, the mission must be explicit regarding what
what it will offer. It is not the same to say: satisfying customer demand, as it is to offer low costs,
Delivery on time, guarantees, etc. Now I really know what my client needs! And he knows it.

We are not going to face the challenge of rethinking our mission without the proper tools. Therefore,
A series of generic questions is used to help identify the aspects to be included.
in the mission statement. All these questions could easily be summarized in three.
Basic questions that are later enriched: What do we do? For whom do we do it? How do we do it?
Shall we do it?

In more detail:

In what business(es) are we?

1b. What businesses could we be in?

2. Why do we exist, what is our basic purpose?

What is distinctive or original about the company?

Who are or should be our clients?

5. What are, or should be, our main products and services, present and future?

6. How much have the company's business changed in the last three to five years?

7. What is likely to change in business in the next three to five years?

8. What are, or should be, our main economic concerns?

9. What values should be important in the future of our company?

10. What special considerations should we have regarding external groups and institutions?
with a defined interest in the future of the company?

The first question, "What business(es) are we in?" is the most important of all. It seems a
simple question but, it is almost always a tortuous issue that can only be answered after
think and study the subject a lot.

We have difficulty in responding to this issue for two reasons; first, our activity
The everyday makes us insensitive and uncritical about day to day, we don't go around asking ourselves
the 'obvious'. Second, when we think about the business or activity of the company, we do so from
our interests and not from the client.

It has been repeated to exhaustion that we do not sell products but benefits, solutions, even
a lifestyle. We establish an emotional bond with the client, we sell them meaning.
The products that will be successful in the future will not be the ones presented as items of
consumption, but not as concepts: the brand as experience, as a lifestyle (Klein, p. 35)

If we define our business poorly, we will provoke a violent derailment in the conception of
the company's mission... and we will lose many opportunities. What our business is, is a
question that can only be answered by looking at the business from the outside, from the point of view
consumer and market view.

Let's examine the following mission statement:

To be recognized as a leading and innovative entity in communications and value services.

added, with international reach, based on total quality management, its values and the
knowledge economy, promoted by the satisfaction of its customers, shareholders and
employees.

What is the benefit it offers to the client from their perspective? Being a leader can be a good goal,
a strategic objective or part of the company's vision but not its reason for being. What about it
Does it benefit the customer? A countless number of companies can appeal to the same values, the company does not
she does not distinguish the customer and their reasons for purchasing.
Many bad decisions will have their starting point in a statement similar to
previous

But the opposite also happens: wherever we find a remarkably successful business,
We will almost always find that their success is accompanied by the fact of formulating the question with
clarity and successfully answering it.

How do we prepare our mission statement? This is the technical side of the matter. For
It is important to have the presence of an experienced facilitator, someone without an interest.
A personal touch in the result would be ideal, being able to remain neutral while collecting points.
of different perspectives ensuring that no individual dominates the discussion, and that the group reaches a
consensus, at least regarding what they consider acceptable, regarding the key factors that must be
included in the mission statement. For this meeting, the team must have reached an agreement
about their strategic values.

It is crucial that each member of the work team (six to ten people would be optimal) brings
write your answers to the previous questions. For this, a sheet can be prepared.
standard work. Let us keep in mind that these questions are designed to make each
one observes the panorama of the entire company rather than concentrating on their own areas of
responsibility.
The answers will be rewritten in such a way that they are visible to everyone, and again, the only ones
questions and comments allowed will correspond to the clarification of meanings of the
given answers, and not to judge the validity of the claims.

After an initial debate, participants can revise their answers to questions 1a-1b.
The following discussion should highlight certain words or phrases that need to appear in
some point of the mission statement. This same process will continue with each of the
next questions.

With all this result a draft can be prepared to be examined in this or another
work session.

Finally, let us see several examples of mission, where the principles that ...
we have shared. This way, everyone can carry out their own analyses:

Entertain people (Disneyland)

Helping to save lives through efficient and transparent management of purchases, inventory,
distribution and production of medications" (Autonomous Service of Productions
Pharmaceuticals of Venezuela

Satisfy the needs and expectations of our clients in terms of security with a
high quality, through the work of a team of competent professionals with extensive
experience, the use of advanced technology and the best national and international practices
in this activity (SEPSA)

Provide exemplary sales of real estate and services based on the highest levels of
trust and integrity. To uphold this standard of excellence, the company is dedicated to maintaining
a professional environment that promotes the success of our clients, partners, employees
owners (Prudential Californian Realty)

Ensure the satisfaction of our clients' expectations in Inspection services,

Breakdown Adjustment and other Related Services, supported by a Quality System and application
of a Contemporary Business Strategy. The professionalism of our staff makes of
INTERMAR Cienfuegos his Agency of
Trust.

5.3. Vision

It has already been said that strategy is equal to the future. Without future thinking, without foresight,
It is almost unthinkable to talk about strategy, as it specifically aims to 'broaden the horizon of
"opportunities of the company" (Morrisey, Chap. 6)

In this sense, the Vision statement is the third significant milestone of strategic thinking, it is a
representation of what we believe the future should be for our company in the eyes of
our clients, workers, suppliers, etc. P. M. Senge, in his book 'The Fifth Discipline'
(1994) refers to the shared vision as one of the "required subjects" of the
smart organizations.

What should a well-formulated vision statement be like?

Brief, preferably with less than ten words.

Easy to grasp and remember

Inspiring, setting challenges for its achievement

Credible and consistent with strategic values and the mission

Clara regarding what the company should become

The starting point for defining the vision statement is the evaluation of values.
strategic. We must start by reviewing the priorities we set for these values and
determine which need to be treated in the vision.

There are also some questions designed to make us think better about how
it should be the future of the company (Morrisey, Chap. 6)

What do I see as key to the future of our company?

2. What unique contribution should we make in the future?

3. What would excite me about being part of this company in the future?

4. What values need to be emphasized?

5. What should our positions be on issues such as customers, markets, the

productivity, growth, technology, employees, and others?

6. What do I see as the greatest growth opportunity for our company?

For the commitment to be effective, the work team needs to free their feelings.
requires, just like in the mission, the presence of an expert facilitator, that the members
respond independently to these questions prior to the session, address them one at a time
making it possible for us all to see the alternatives we generate, seeking consensus on
key words and phrases that reflect future perspectives, reexamine the responses in light of
reflection we made to reach an agreement on the few words or phrases that should
to formulate the vision statement, and finally to outline the statement.

Some examples of visions offered by G. Morrisey (1995)

We will be seen as the highest value provider in every market we serve.

We will be the best company in our field in terms of customer satisfaction and profitability.
through store

We are and will continue to be first class in quality and customer satisfaction.

We will constantly defraud yesterday's customers by being much better tomorrow.

We want to be

We can be THE BEST!

We will be
The Vision is a statement designed for broad communication. 'A
The vision statement is designed to inspire and motivate those who have a marked interest.
in the future of the company” (Morrisey, Chap. 4) With it we must inspire all the
organization and to our clients. Business cards, wall plaques,
internal bulletins, annual reports, orientation for new employees, manuals,
paperweight, criteria for the determination of new projects, etc., are
some of the ways and moments to communicate our vision.

BIBLIOGRAPHY

Goldratt, E. M.: The Goal. A Process of Ongoing Improvement. The North River Press
Great Barrington, Expanded Edition, 1999.

Klein, N.

Lundin, S. C., H. Paul and J. Christensen: FISH! The Effectiveness of a Team Lies in Its Ability to
Motivation

Morrisey, G. L.: Strategic Thinking. Building the Foundations of Planning. Prentice

Hall. Digital Edition. Florida. 1995.

1
Although G. Morrisey in his work 'Strategic Thinking. Building the Foundations of the
"Planning" (1995) does not distinguish Strategic Values as an internal element.
behavioral, of the organization, it seems better to reserve this concept for those variables
of competitiveness that involve the human factor, in which we can all have an impact with our
daily behavior.

2
I recommend reading 'The Goal. A Process of Ongoing Improvement' by E. M. Goldratt (1999)
well illustrates, in my opinion like no other management book, what it means to incorporate within the
organization the value of learning as a basic capacity for change and competitiveness.

3
Excellent work by S. C. Lundin, H. Paul, and J. Christensen: 'FISH! The Effectiveness of a Team
lies in its capacity for motivation" (2000) focuses its attention precisely on this value: the
ability to maintain a positive and fun attitude at work as a condition for high
performance.