The Importance of Mission in the Strategic Management - Essay Example

The Importance of Mission in the Strategic Management process Management is an integral part of the modern society’s activity. It is connected to allfields of activity and that is why it is necessary to know as much as possible about its laws and specificity. In my paper I am going to discuss the basics of strategic management and its role in the public sector. Speaking about strategic management, it is necessary to specify some initial conceptual representations about management and management as a whole. The model of strategic management is offered as one of conceptual bases in the system of management consisting of two subsystems: strategic and operative, (fig. 1). As David states, rategic management should give the answers to the following three key questions: 1. What are purposes of our organization? 2. What is the existing and future structure of our business? 3. That should we do to provide the achievement of our goals? The bases of strategic management are: 1. Analysis of organization’s external environment; 2. Internal diagnostics (an estimation of the strong and weak sides of the organizations; 3. Definition of mission and the purposes of the organization; 4. Development, estimation and choice of alternative strategy on concrete subsystems of the organization; 5. Development and the developed definition of corporate strategy as a program of concrete actions; 6. Strategy realization; 7. Estimation of results and feedback Fig. 1. Strategic management model. (by David) On the Fig. 8 there is a general model of the organization. The given system of the organization as the original «strategic pyramid» is very simplified. At the same time it very successfully shows the system and integrate unity of strategic and tactic aspects of management. Fig. 8. Simplified organization model: («Strategic pyramid»).(by Pearce) . Mission Goals Strategic conception What area would we like to work in? Strategies of key organizational subsystems How is the organization going to get a success? opportunities Dangerous Advantages weaknesses Competitor advantages keeping Competitive advantages creating Borins defines a range of different terms of management: System of management is the main means of development and practical realization of the general program of the organization development and realization of its strategy. An ultimate goal of system of management is the performance of the company’s mission. Mission is the most overall aim of the organization as the competitive structure, submitted in the most general form and expressing a principal cause of organization existence. Strategy of corporation is a business concept of the organization on the given strategic prospect, submitted as the long-term program of concrete actions which are capable of realizing the given concept and to provide the organizations competitive advantages in achievement of the purposes. The important element of strategy of the organization is an answer to the question: "how to conduct competitive struggle? ". The key element of strategy is the target orientation in use of resources of the organization. Finally, corporate strategy of the given organization consists in knowledge and practically skills on creation and realization of the concrete advantages. Strategic management is a subsystem of organization management which carries out all the complex of concrete works on professional action under the strategic analysis, to development, realization and controlling strategy of the organization. Competitive advantage is those characteristics which create the certain superiority over its competitors for the organization making and realizing the given product. These characteristics may be various and concern to the product (base service), and to the additional services accompanying base, i.e. to modes of production, selling, sales etc., specific to the organization and its product. Humger insists that mission, vision and values are the links that connect the integral parts of the company together. They describe the purpose of the company, the approaches that are implemented for successful result, and a general goal of the company’s existence. Defining and realizing these points will help both the staff and heads of the company get an integral image of the company, which would be helpful in their working process. These notions may sound abstract for people that are not involved into strategic planning, especially for people, that are occupied with practical activities and are focused on getting benefits and do not trouble themselves with such abstract notions. Such pragmatic people, or people, who consider themselves to be pragmatic, pass this very important stage of building up a successful base for future functioning of the company. It is extremely important to find staff and time to forge out mission, vision and values statements, for it will be generously repaid. Exploring and give-and-take may be successful during meetings, discussions, with a large number of specialists involved. There are different successful strategies of preparing a group that will further work upon mission and vision statement. These may be the interviews, discussing possible items that should be included into mission, asking questions and answering them, with all the information written and then passed to the working group to serve as a basis for future writing. It would be also interesting and useful to ask each member of the group to write his own draft of future mission statement, and then compare the results to define the most important things that should be included. The head of the group may also give each member of the group a task, which includes a written discussion of the mission, its general idea and definite items. The other way to prepare is using media means – making a video interview to create an image of the company and the successful perspective as it is seen by the people in order the mission to be inspired by positive ideas. There are a large number of viewpoints, patterns and methods that are implemented in strategic management. The approach used for forging out a strategic plan depends upon the essence of a firm’s headship, nature of its organization, its cultural and traditional models, its surroundings, staff volume, experience of those who are involved into planning and many other factors. For instance, there are patterns based upon the goals, upon the issue, there are organic patterns. The pattern that is based upon the goal includes observation of company’s mission, vision and direction, in order to direct the working process to mission’s accomplishment, necessary ways of achieving the purposes and planning of the activity. The pattern that is based upon issues, focuses on different issues, that the company is faced with, on approaches that may be applied to those issues, and planning the activity. When starting to work over mission statement, it is necessary to pay attention to definite items. According to the writings of David, these items are as follows: 1. The mission should reflect a global goal of all the company. 2. In case a vision is examined before mission statement, it would be helpful to define the goal of the vision. The most likely, that the purposes of vision and mission will be the same. 3. Approaches that may be implemented in planning the mission and a vision may vary. The persons involved in a process of planning may use rational or creative approaches, including discussions, examinations of day realities, sharing creative ideas etc. 4. When putting the mission into words it is necessary to observe the products of the company, its services, culture, traditions, its image, the markets it uses and the major priorities of its activity. 5. It is important to foresee and make possible any changes that might be necessary due to changes in existing strategic plans. 6. It is also important to take into consideration that a mission statement may help the staff and heads of the company recognize the purposes of the whole firm and individual purposes in producing the products or services. 7. On the last stage of mission statement wording it would be useful to try to change the words, to add or to delete something in order to make sure the text is clear and fine. 8. The next point will be to examine if the mission statement clearly describes company’s profile and if it makes the company stand out in a range of similar organizations. Here is the sample of the mission and statement of a company, where all necessary components are included: Toastmasters International The Values of Toastmasters International Toastmasters International’s core values are integrity, dedication to excellence, service to the member, and respect for the individual. These are values worthy of a great organization, and we believe we should incorporate them as anchor points in every decision we make. Our core values provide us with a means of not only guiding but also evaluating our operations, our planning, and our vision for the future. The Vision of Toastmasters International Toastmasters International empowers people to achieve their full potential and realize their dreams. Through our member clubs, people throughout the world can improve their communication and leadership skills, and find the courage to change. The Mission of Toastmasters International Toastmasters International is the leading movement devoted to making effective oral communication a worldwide reality. Through its member Clubs, Toastmasters International helps men and women learn the arts of speaking, listening and thinking – vital skills that promote self-actualization, enhance leadership, foster human understanding, and contribute to the betterment of mankind. It is basic to this mission that Toastmasters International continually expand its worldwide network of Clubs, thereby offering ever-greater numbers of people the opportunity to benefit from its programs. The Mission of the Club The mission of a Toastmasters club is to provide a mutually supportive and positive learning environment in which every member has the opportunity to develop communication and leadership skills, which in turn foster self-confidence and personal growth. The Mission of the District The mission of the District is to enhance the performance and extend the network of Clubs, thereby offering greater numbers of people the opportunity to benefit from the Toastmasters educational program by: - Focusing on the critical success factors as specified by the District educational and membership goals. - Insuring that each Club effectively fulfills its responsibilities to its members. - Providing effective training and leadership opportunities for Club and District Officers. The Strategic Plan includes the following items: 1. Every club distinguished 2. Ensuring district excellence in service to clubs 3. Every area, division, and district distinguished 4. 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