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Chapter 4 Developing Mission, Vision, and Values (Principles of Visionary…

- - - - leading indicator - serves to predict where the firm is going, in terms of
        performance
      - pacing indicator - tells you in real time that the organization is on track, for example, in on-time
        deliveries or machinery that is in operation
      - lagging indicator - A measure of performance that shows how well the firm has done historically.
- - - - (2) imagination (external orientation with flexibility emphasis)
      - (3) improvement (internal orientation with high control), and
      - (4) incubation (internal orientation with flexibility emphasis).
      - (1) investment (external orientation with high control)
  - - - • To generate numerous creative ideas
      - • To ensure everyone is heard
      - • When there is concern that some people may not be vocal
      - • To build consensus
      - • When there is controversy or conflict
- - - - The first step in stakeholder analysis is identifying major stakeholder groups.
        
        Step 1: Determining Influences on Mission, Vision, and Strategy Formulation.
        
        organizational stakeholders, and they include both high-level managers and frontline
        workers.
        
        Capital-market stakeholders are groups that affect the availability or cost of capital—shareholders, venture capitalists, banks, and other financial intermediaries.
        
        Product-market stakeholders include parties with whom the firm
        shares its industry, including suppliers and customers.
        
        Social stakeholders consistbroadly of external groups and organizations that may be affected by or exercise influence over firm strategy and performance, such as unions, governments, and activist groups
        
        The next two steps are to determine how various stakeholders are affected by the firm’s strategic decisions and the degree of power that various stakeholders wield over the firm’s ability to choose a course of action.
        
        Step 2: Determining the Effects of Key Decisions on the Stakeholder
        
        Step 3: Determining Stakeholders’ Power and Influence over Decisions.
        
        Two Challenges
        
        determining how
        stakeholders are affected by a firm’s decisions
        
        how much influence they have
        over the implementation of the decisions that are made