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This presentation discusses the framework of constructing an enduring Corporate Vision. It covers topics of Core Ideology, Envisioned Future, BHAGs, Core Values, Mars Group, Five Whys, and other related concepts. Includes case examples and a set of PowerPoint templates for use in your own analyses and presentations. Presentation largely based on the HBR article, Building Your Company’s Vision.
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Building an Enduring Corporate Vision
1. Crowdsourced Business
Presentation Design Service
Building an Enduring Corporate Vision
Core Ideology and Envisioned
Future
June 19, 2013
This presentation discusses the framework of constructing an enduring Corporate
Vision. It covers topics of Core Ideology, Envisioned Future, BHAGs, Core Values,
Mars Group, Five Whys, and other related concepts. Includes case examples and a
set of PowerPoint templates for use in your own analyses and presentations.
Presentation largely based on the HBR article, Building Your Company’s Vision.
ORIGINAL PROJECT DETAILS
http://pptlab.com/ppt/HBR-Building-Your-Companys-Vision-18
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Contents
Overview 4
Core Ideology 9
Envisioned Future 24
Case Example 35
Templates 37
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This document discusses the science and art behind building an enduring
corporate vision
Executive Summary
There are some companies with exceptionally durable visions that have been built to last. What
distinguishes their visions from most others?
This document explains a framework around building an enduring company vision, developed by
business professors James Collins and Jerry Porras. There are two key components to an enduring
corporate vision:
• Core Ideology. The Core Ideology defines a company’s timeless character—it is the glue that
olds the organization together even when everything else is subject to chain. This core is
comprised of Core Values and a Core Purpose.
• Envisioned Future. The Envisioned Future is comprised of Big, Hairy,
Audacious Goals (BHAGs) and a Vivid Description of what it will be
like to achieve those BHAGs.
A company’s Core Ideology and Envisioned Future are two distinct
concepts. A BHAG is a clearly articulated goal that takes 10 to 30
years to reach—whereas our Core Purpose can never be completed.
In this presentation, we break down the process of constructing a
company’s vision in detail. PowerPoint templates are also included for you
to use in your own analyses and presentations.
CORE
IDEOLOGY
ENVISIONED
FUTURE
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There are many vague, descriptive definitions for vision—the one we define
is structured and consists of Core Ideology and an Envisioned Future
What is Vision? (2 of 2)
Deeply Held
Values
Outstanding
Achievement
Exhilarating
Goals
Motivating
Forces
Societal Bonds
CORE
IDEOLOGY
ENVISIONED
FUTURE
CONVENTIONAL
DEFINITION OF
VISION
STRUCTURE
DEFINITION OF
VISION
CHARACTERISTICS COMPONENT(S)
• Conventionally, vision has been
described in vague, unstructured,
and descriptive terms
• “Vision” is an abstract concept
with numerous interpretations
• We define vision in a well-
conceived, structured, and
prescriptive manner
• Vision consists of 2 components:
• Core Ideology
• Envisioned Future
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Our Core Ideology consists of Core Values and Core Purpose
Core Values and Core Purpose
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE VALUES
Core Values are the handful of guiding principles by
which a company navigations
They require no external justification
Instead of changing its Core Values, a great company
will change its markets in order to remain true to its Core
Values
CORE PURPOSE
The Core Purpose is an organization’s most
fundamental reason for being
It’s not to be confused with the organization’s current
product lines or customer segments—rather, it reflects
employee’s idealistic motivations for doing the
company’s work
1 2
CORE
IDEOLOGY
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The Core Values are the essential and enduring tenets of an
organization
Core Values – Definition
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE VALUES
DEFINITION
Core Values are the essential and enduring tenets of an organization.
• Core Values require no external justification—they have intrinsic value and importance to
those inside the company
• A great company decides for itself what values it holds to be core—largely independent of the
current environment, competitive requirements, or management fads
• Organizations tend to have only a few Core Values—usually 3-5
• Core Values stand the test of time
• To identify the Core Values of our organization, we must push with relentless honesty to
define what values are truly central
• Ralph Larsen, former CEO of Johnson & Johnson, said: “The core values embodied in our
credo might be a competitive advantage, but that is not why we have them. We have them
because they define for us what we stand for, and we hold them even if they became a
competitive disadvantage in certain situations.”
DETAILS
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Here are several examples of enduring companies with
enduring values
Core Values – Examples (1 of 2)
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE VALUES
Corporate social responsibility
Unequivocal excellence in all aspects of the company
Science-based innovation
Honesty and integrity
Profit, but profit from that benefits humanity
Service to the company above all else
Hard work and individual productivity
Never being satisfied
Excellence in reputation; being part of something special
The right to freedom of choice
Winning—beating others in a good fight
Encouraging individual initiative
Opportunity based no metric—no one is entitled to anything
Hard work and continuous self improvement
Elevation of the Japanese culture and national status
Being a pioneer—not following others, doing the impossible
Encouraging individual ability and creativity
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Who should be involved in articulating the Core Values of
our company?
Mars Group Exercise (1 of 2)
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE VALUES
An organization’s values
may vary with its size, age,
and geography.
In such a state, how do we
determine who should be
involved in articulating an
organization’s Core
Values?
Use an exercise called
Mars Group.
Mars Group:
• It works like this: imagine that you’ve been asked to
recreate the very attributes of our organization on another
planet, but you have seats on the spaceship for only 5-7
people
• Whom should you send?
Invariably, the selected “Mars Group” is composed of highly credible representatives
that represent the company’s genetic code.
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Who should be involved in articulating the Core Values of
our company?
Mars Group Exercise (2 of 2)
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE VALUES
The Mars Group needs to address these
fundamental questions:
What Core values do you personally bring to your work?
What would you tell your children are the Core Values that you hold at work
and that you hope they will hold when they become working adults?
If you awoke tomorrow morning with enough money to retire for the rest of
your life, would you continue to live those Core Values?
Can you envision them being as valid for you 100 years from now as they
are today?
Would you want to hold those Core Values, even if at some point one or
more of them become a competitive disadvantages?
If you were to start a new organization tomorrow in a different line of work,
what Core Values would you build into the new organization regardless of its
industry?
These last 3 questions are particularly important, because they make the crucial
distinction between enduring values and practices that should be constantly
changing.
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Here are several examples of enduring companies and their
Core Purposes
Core Purpose Examples (1 of 2)
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE PURPOSE
3M To solve unsolved problems innovatively
Cargill To improve the standard of living around the world
Fannie Mae To strengthen the social fabric by continually democratizing home ownership
Hewlett-Packard To make technical contributions for the advancement and welfare of humanity
Lost Arrow Corporation To be a role model and a tool for social change
Pacific Theatres To provide a place for people to flourish and to enhance the community
Mary Kay Cosmetics To give unlimited opportunity to women
McKinsey & Company To help leading corporations and governments be more successful
Merck To preserve and improve human life
Nike To experience the emotion of competition, winning, and crushing competitors
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One powerful method for arriving at our Core Purpose is
through asking the Five Whys
Five Whys Exercise
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE PURPOSE
Start with a descriptive
statement about our
purpose.
E.g., We make X products.
Next, ask, Why is
that important?
Ask again, Why is
that important? Why?
1 2 3 4 5 6
• Ask “Why is that Important?” five times
• After a few Whys, you’ll find that we’re getting down to the
fundamental purpose of the organization
• The Five Whys can help companies in any industry frame their
work in a more meaningful way
The Core Purpose never falls into the category of Maximizing Shareholder Value
(SHV).
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You can utilize the Mars Group again to determine your
organization’s Core Purpose
Mars Group – Part Two
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE PURPOSE
Peter Drucker once asserted the most dedicated people are ultimately volunteers, as
they have the opportunity to do something else with their lives.
?
Another approach to extracting Core Purpose is to ask each
member of the Mars Group…
• How could we frame the purpose of this company, so
that if you woke up tomorrow morning with enough
cash in hand to retire, you would continue to work
here?
• What deeper sense of purpose would motivate you to
continue to dedicate your precious creative energies
to this organization’s efforts?
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Envisioned Future is composed of a Vision-level BHAG and
a Vivid Description
Envisioned Future Components
VISION-LEVEL BHAG
The vision-level BHAG (pronounced BEE-hag) is a tool
to stimulate progress
Whereas all companies have goals, the BHAG is unique
in that it is a huge, daunting challenge
A true BHAG is clear and compelling, serves as a
unifying focal point of effort, and acts as a catalyst for
team spirit
VIVID DESCRIPTION
The Vivid Description is a vibrant, engaging, and
specific description of what it will be like to achieve the
BHAGs
They make the BHAGs tangible
1 2
CORE
IDEOLOGY
ENVISIONED
FUTURE
ENVISIONE
D
FUTURE
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BHAG stands for Big, Hairy, Audacious Goal—it’s a strategic
business statement focused on a transformative goal
BHAG Overview
CORE
IDEOLOGY
ENVISIONED
FUTURE
What is a BHAG?
BHAG stands for Big, Hairy, Audacious Goal. It is a
strategic business statement which is created to focus an
organization on a single medium-long term organization-
wide goal which is audacious, likely to be externally
questionable, but not internally regarded as impossible.
Visionary companies often use bold missions—i.e. BHAGs
—as a powerful way to stimulate progress.
A true BHAG is clear and compelling, serving as a unifying
focal point of effort and acting as a catalyst for team spirit.
It has a clear finish line, so the company can know when it
has achieved the goal. People like to shoot for finish lines.
A BHAG engages people. It is tangible, energizing, highly
focused. People should get it right away—i.e. it requires
little or no explanation.
Most corporate statements do little to spur forward
movement, because they do not contain the powerful
mechanism of a BHAG.
BHAG
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Here are several guiding principles when constructing our
BHAGs
BHAG Guiding Principles
CORE
IDEOLOGY
ENVISIONED
FUTURE
BHAG
Setting the vision-level BHAG far into the future requires thinking beyond the current
capabilities of the organization and the current competitive environment
Inventing such a goal forces our executive team to be visionary—rather than strategic or
tactical
A BHAG should not be a sure bet—it will carry perhaps only a 50% to 70% probability of
success
Even though a BHAG is not a sure bet, the organization must believe that it can reach the
goal anyway
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A BHAG generally falls under 1 of 4 categories
Types of BHAGs
ENVISIONED
FUTURE
CORE
IDEOLOGYBHAG
A vision-level BHAG requires 10 to 30 years of effort to complete.
Target BHAGs can be quantitative or
qualitative
Common-enemy BHAGs involve David-vs-
Goliath thinking
Role-model BHAGs suit up-and-coming
organizations
Internal-transformation BHAGs suit large,
established organizations
1 2
3 4
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Target BHAGs can be quantitative or qualitative
1
Wal-Mart
(1990)
Become a $125B company by the year 2000
Ford Motor Company
(early 1900s)
Democratize the automobile
City Bank
(Predecessor to Citicorp,
1915)
Become the most powerful, the most serviceable, the most far reaching
world financial institution that has ever been
Boeing
(1950)
Become the dominant player in the commercial aircraft and being the
world into the jet age
A BHAG can be either quantitative or qualitative
BHAG Examples
ENVISIONED
FUTURE
CORE
IDEOLOGYBHAG
Role-model BHAGs suit up-and-coming organizations
2
Giro Sport Design
(1986)
Become the Nike of the cycling industry
Watkins-Johnson
(early 1900s)
Become as respected in 20 years as Hewlett-Packard is today
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Here are a couple examples of Vivid Descriptions and their
corresponding BHAGs
Vivid Description Examples
ENVISIONED
FUTURE
CORE
IDEOLOGY
VIVID
DESCRIPTION
BHAG: Democratize the automobile
Vivid Description:
I will build a motor car for the great multitude.... It will be so low in price that no
man making a good salary will be unable to own one and enjoy with his family the
blessing of hours of pleasure in God's great open spaces.... When I'm through,
everybody will be able to afford one, and everyone will have one. The horse will
have disappeared from our highways, the automobile will be taken for granted
[and we will] give a large number of men employment at good wages.
BHAG: Transform from a chemical manufacturer into one of the preeminent drug-making
companies in the world, with a research capability to rival any major university
Vivid Description:
We believe that research work carried on with patience and persistence will bring
to industry and commerce new life; and we have faith that in this new laboratory,
with the tools we have supplied, science will be advanced, knowledge increased,
and human life win ever a greater freedom from suffering and disease.... We
pledge our every aid that this enterprise shall merit the faith we have in it. Let your
light so shine -- that those who seek the Truth, that those who toil that this world
may be a better place to live in, that those who hold aloft that torch of science and
knowledge through these social and economic dark ages, shall take new courage
and feel their hands supported.
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CORE IDEOLOGY ENVISIONED FUTURE
Putting it all together… here is a breakdown of Sony’s Core Ideology and
Envisioned Future in the 1950s
Case Example – Sony in the 1950s
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE VALUES
•Elevation of the Japanese culture and
national status
•Being a pioneer (not following others,
doing the impossible)
•Encouraging individual ability and creativity
PURPOSE
To experience the sheer joy of innovation
and the application of technology for the benefit and
pleasure of the general public
BHAG
Become the company
most known for changing the
worldwide poor-quality image of
Japanese products
VIVID DESCRIPTION
We will create the products that become
pervasive around the world… We will be the first
Japanese company to go into the U.S. market and
distribute directly… We will succeed with innovations
that U.S. companies have failed at—such as the
transistor radio… Fifty years from now, our brand
name will be as well known as any in the world… and
will signify innovation and quality that rival the most
innovative companies anywhere… “Made in Japan” will
mean something fine, not something shoddy.
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Insert Headline
Yin Yang Diagram – TEMPLATE ALTERNATE
CORE IDEOLOGY
ENVISIONED FUTURE
• Core Values
• Core Purpose
• 10-to-30 Year BHAG
• Vivid Description
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Insert Headline
Case Example – TEMPLATE
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE VALUES
PURPOSE
BHAG
VIVID DESCRIPTION
• Filler text filler text filler text
• Filler text filler text
• Filler text filler text filler text
• Filler text filler text
• Filler text filler text filler text
• Filler text filler text
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CORE IDEOLOGY ENVISIONED FUTURE
Insert Headline
Case Example – TEMPLATE ALTERNATE
CORE
IDEOLOGY
ENVISIONED
FUTURE
CORE VALUES
•Filler text filler text filler text
•Filler text filler text filler text
•Filler text
PURPOSE
Filler text filler text filler text filler text filler
text filler text filler text filler text
BHAG
Filler text filler text filler
text filler text filler text filler text
VIVID DESCRIPTION
Filler text filler text filler text filler text filler
text filler text filler text
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Insert Headline
Five Whys – TEMPLATE
Insert descriptive statement about company’s purpose
Why is this important?
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Why is this important?
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1
2
3
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5
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Insert Headline
Mars Group – TEMPLATE
NAME
Role
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NAME
Role
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NAME
Role
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Insert Headline
Mars Group – TEMPLATE ALTERNATE
INSERT NAME INSERT NAME
INSERT NAMEINSERT NAME INSERT NAME
INSERT NAME INSERT NAME
• What Core values do you personally
bring to your work?
• What would you tell your children are
the Core Values that you hold at
work and that you hope they will hold
when they become working adults?
• If you awoke tomorrow morning with
enough money to retire for the rest
of your life, would you continue to
live those Core Values?
• Can you envision them being as
valid for you 100 years from now as
they are today?
• Would you want to hold those Core
Values, even if at some point one or
more of them become a competitive
disadvantages?
• If you were to start a new
organization tomorrow in a different
line of work, what Core Values would
you build into the new organization
regardless of its industry?
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PPT Lab (www.pptlab.com) is the only crowdsourced
presentation design service. Get consulting-quality
presentations at a fraction of the cost!
Each month, we will create well over 50 slides of for our members.
As a member, you will drive what business slides we create by
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www.PPTLab.com
support@pptlab.com