Vision: how leaders develop it, share it, and sustain it - includes related articles

Business Horizons, Sept-Oct, 1994 by Joseph V. Quigley

* Their revenue grew more than four times faster.

* Job creation was seven times higher.

* Their stock price grew 12 times faster.

* Their profit performance was 750 percent higher.

Performance follows vision. Without vision a firm may be profitable, but its competitive performance will suffer significantly.

2. If profit goals are clear and understood, why is vision needed? How do values fit with profitability?

I define values as the guidelines by which the organization expects its members to conduct themselves. As a corporation becomes an institution, and thus a society in itself, a set of values and beliefs becomes a necessity.

It is critically important to see values and profits in their proper perspective--as partners and not opponents. Profit is viewed w-ith disdain by many who fail to understand its role in the economy at large. The inclination to disparage the profit motive seems to originate from the medieval concept that one person's profit must always entail another person's loss.

Values are the primary drivers or motivators, profit is the reward. Leaders need to make values and profits work together toward business success. Neither one can get it done alone. In short, an organization's vision should be as clear as its profit goals. Profit alone is not enough to motivate employees.

3. How will vision affect employees? What is the difference from an employees point of view between working for a company that has a vision and one that does not?

Organizations with vision and values offer their employees strong opportunities for personal growth as corporate revenue and profits grow. In addition, employees can enjoy increased responsibility and compensation and a strong possibility of greater personal wealth as the value of their ownership in company stock appreciates. This combination of company growth and individual growth creates a winning attitude that permeates corporate cultures.

Employees who work for a corporation with a well-defined and motivating vision and who buy into values such as customer service, superior quality, integrity. and excellence are more apt to derive satisfaction from their work. They tend to approach their jobs with a sense of pride, and strive constantly for excellence and superiority.

Profit and profit goals are not significant motivators for many employees. Often they view profit as something that their hard work and sacrifice earn for their employer, who then takes it and distributes it to shareholders. Therefore, reliance on profit alone may not be enough to get employees to work at their very best. But vision combined with profit can be tremendously motivational.

4. What do you mean by the phrase, "vision rollout"?

Rollout refers to the leader's responsibility to communicate the corporate vision and values throughout the organization. It is based on the understanding that the work of the leadership group will be meaningless unless those leaders pass on their vision effectively to their people.

Leaders must provide people with tim opportunity to see, hear, question, and discuss the vision for the future. Consensus and commitment generally fall off the deeper one goes into the organization. The vision must be conveyed to everyone in the company. Simplicity and focus will be two of the key criteria regarding successfull rollout: focus in the vision, focus in the implementation plan, focus in communications and operations.