Organisational Beliefs
Statements about reality that are accepted by an individual as true. Also, they ….
zDiffer from values in that they may be based upon empirical observation, logic, tradition, acceptance by others, or faith zForm the basic structure of the individual’s conception of the world zLiveStrong
Strategic Direction
Internal and External Analysis
Strategic Direction
Strategy Formulation (corporate and business level)
Strategy Implementation and Control
Effective mission statements
Clearly written Relevant Current Positive tone Individuality Enduring Adapted to target audience
Organisational Mission
Elements, Functions, and Forms
z Resort specialising in surf, dive, adventure tourism; also has conference and event facilities z Challenges:
z Remoteness, lack of regional infrastructure z Poverty z Cultural issues z Coral reef destruction z Lack of water
Weighing up Profitability vs. Responsibility in Lombok, Indonesia
Community measures:
z z z z z z z z z Level of employees’ financial and job security Job creation and local employment Level of taxes paid locally and regionally Philanthropic donations Involvement in kampong community Coral reef regeneration Aquaculture Water usage Reforestation
Intercontinental Hotels Group
SUSTAINABILITY depends upon finding a balance between these values
3
Profitability Vs. Responsibility: A Case Study
Heaven on the Planet, Ekas Bay, Lombok, Indonesia
z Internal stakeholders z External stakeholders z Broad environment z History and inertia
Strategic Restructuring
1
Stratfined by mission, business definition, vision and enterprise strategy Mission: Defines organisation’s purpose, what it does, and why it exists.
The issue of organisational mission
How do we send the organisation in a particular direction?
Mission and Vision
A mission statement reflects what an organisation is:
What is in a MS?
4
Mission statements: What is in a good one?
Industry Domain, scope Market position Core values, beliefs Key stakeholders Broad objectives
What is in a MS?
Organisational Purpose
Why does the organisation exist?
Business Definition
Where does the organisation operate?
Organisational Values
What is of fundamental importance?
z Business definition: Part of mission, defines products, markets, functions served, and resource conversion processes.
Mission Statements
Patagonia Queensland Events, Gold Coast Sea Shepherd Conservation Society Banyan Tree Dive Centre - Maldives
What is in a MS?
Dealing with the Paradox
Profitability
To be an attractive investment, a firm must earn a higher return on the shareholders´ equity than is achievable at a bank
z standards of behaviour z essential organising principles z trust, and link an organisation together
What is in a MS?
Organisational Values
The values of profitability vs. responsibility
z This may not actually be written down anywhere, but will still exist.
Mission statements
Why have them? What is in one? What makes a good one?
Mission statements: Why have them?
Vision: What the organisation wants to be in the future. Enterprise Strategy: Link between mission, vision, and values (including ethics). What should the organisation be?
Organisational Values
General conceptions of the desirable goals, or ends, that people should strive to attain and the criteria by which actions should be evaluated; abstract ideas about the good, the right, the desirable. Values help to engender ….
Motivation
Inspiring individuals to work together in a particular way
2
The mission statement: What is in one?
Organisational Beliefs
What are the driving ideas and assumptions?
Strategic direction is defined by an organisation’s vision of where it is heading, the businesses in which it is involved, and how it serves its stakeholders Influences on strategic direction:
z Australian Football League
Mission Statement
Responsibility
The organisation should act in the interest of others, even when there is no legal imperative to do so
How might all this look in practice then?
Direction
Defining the boundaries within which strategic choices and actions must take place
Legitimisation
Conveying to all the stakeholders inside and outside the organisation that the organisation is pursuing valuable activities in a proper and legitimate way