Does Vision And Mission Emerge From The

Particular Culture Of The Firm Or Is It Dictated By Strategy Essay, Research Paper

Does vision and mission emerge from the particular culture of a firm or is it dictated by strategy.

The culture of a firm and the formation of strategy are two very

important aspects of an organisation. The world contains many different people all with different values, ideas and beliefs. These differences create a diverse range of cultures within organisations, some having bigger influences than others. Strategies within organisations are highly dynamic and complex, and can have positive and negative effects on an organisation. Vision and mission are concepts that many believe are vital for an organisation to operate effectively and to the best of its abilities. Andrew Campbell (1991) , a prominent writer on vision and mission, believes that both the culture and the strategy of a firm come together side by side to build an overall definition of mission for a firm. The paper will be based around Campbell s perception and whether either culture or strategy has a greater part to play in an organisation s mission.

Culture and strategy will be examined in a context relevant to the title question. Hofstede (1993) defines culture as the collective programming of the mind which distinguishes one group or category of people from another . Hofstedes research of different organisations and countries allowed him to make predictions on the way different societies operate, including their management processes and the theories that would be used in management. Morgan (1996) refers to culture as the pattern of development reflected in a society s system of knowledge, ideology, values, laws, and day-to-day ritual . In subsequent writings he expands on organisational culture as self-organising and is always evolving and also we are observing an evolved form of social practice that has been influenced by many complex interactions between people, events, situations, actions, and general circumstances . These broad definitions of organisational culture are important bases and will be used throughout.

Defining strategy is a difficult process because it is a complex concept that has many forms and is constantly changing. Andrews (1987) attempt is a comprehensive definition that incorporates many different aspects of strategy. His definition of strategy includes the pattern of decisions that determines and reveals its objectives, purposes, or goals, and defines the range of business the company is to pursue, the kind of economic and human organisation it tends to be, and the nature of the economic and non-economic contribution it intends to make to its shareholders, employees, customers, and communities. It must be recognised that strategy can be identified at three different ascending levels: business, corporate, and network level (De Wit & Meyer 1998). Culture can have varied affect and influence on the three levels of strategy content.

This section will define vision and mission, describe how they are created and focus on their relevance to the firm. Campbell (1991) believes a vision and mission can be one and the same , but they are not identical concepts. Vision refers to the future of a firm that is beyond its current capabilities. If a vision is realised then a new vision should be created in order to keep the firm striving for advancement. The distinct difference with a mission is that it can remain unchanged for the life of the company. Mission refers to the present and is a focus of behaviour and therefore it is very important to the organisation. Vision is valuable due to the importance of goals, but less so because sometimes visions can become useless if they are achieved in a short space of time or if they are overly ambitious. It has been shown that vision and mission are different concepts but because they are predominantly overlapping, for the remainder of this paper the overall concept will be referred to as mission . Many management journals define a strong mission as one that incorporates four general elements purpose, strategy, behaviour standards, and values. These concepts will be explained and reviewed to gain some understanding of whether either strategy and culture are foremost in the mission of a firm.

The four elements defining a mission are not just isolated ideas but can be seen to exist together, reinforcing each other. The Ashridge mission model (appendix 1) is important to show how the elements link together to form a strong mission for a company. A mission that has a clear purpose is one that explains why the company exists. Campbell (1991) believes that companies fall into three categories when an overall purpose is considered. The first is a company that exists for the benefit solely of the shareholders. The second is one that seeks to satisfy all the stakeholders including shareholders but also customers, employees, suppliers and the community. The final type of purpose identified is one that strives towards a higher deal . Producing benefits for the stakeholders alone dissatisfies the managers of this type of company. They endeavour to identify a purpose that is greater than that of the combined needs of the stakeholders and so produce something of which they can be proud.

A strong mission would also contain guidelines on behaviour standards regarding the day-to-day operations of the firm. It may be set out as a col