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July 2005 - Volume 22


Feature Article

Guiding Statements: Your Blueprint for Success

Would you ever build a house without a blueprint or some architectural design? Without a solid foundation or clear image of the finished product, construction would fail. Likewise, a business needs to have a solid foundation from which to establish and build its success. Even though there may be numerous complex, dynamic systems or processes in place to organize the efficiency of a business (i.e. technology, equipment, procedures), there needs to be a consistent foundation to establish and preserve the basic purpose and culture of the organization.

The culture of an organization is an outgrowth of a company’s guiding statements. These statements or promises are usually created by the owners and/or leaders within a business. These formal statements describe the company’s principles for operation in their relations with customers, suppliers, employees, and others. “To serve and protect” is probably the most popular mission statement of any business throughout the United States. The simplicity and focus of that statement not only defines the role of a police officer, but also clearly describes how they serve the public.

The most common guiding statements are the mission, vision, philosophy and tag-line or motto. Guiding statements clarify the purpose of your company and paint a picture of its future. They help every employee and customer understand why the company exists. Most guiding statements are written from a company’s perspective, but may also be written for a department, team or individual. Each of the guiding statements has a specific focus, yet is interconnected to one another. The key to success is living up to your promise. Thus, the words must be congruent with your behaviors.

The mission statement is a single sentence of no more than 25-30 words that defines the purpose, describes the people who you serve and the end-benefit of what you do. The mission statement is a brief, clear statement that:

  • provides the context for formulating specific strategies
  • sets the arena in which the organization will compete
  • determines how resources will be allocated
  • guides the general pattern of growth and direction for the future of the organization
  • motivates employees to perform in a way consistent with purpose

The vision statement is a single sentence of no more than 25-30 words that describes what you’d like to accomplish or be recognized as in the future. It should not describe the current state of the company. Like the mission statement, your vision statement should be easy to understand, yet stated in future terms. Ideally, the vision statement should be one a simple statement that begins with “We will be”. Unlike the mission statement that defines your purpose, the vision statement defines the long-term aspiration for your business. The vision statement answers the questions:

  • How will your organization be described or known as in a future state?
  • Where will this recognition come from?

The philosophy may be a single statement or a collection of value-based promises made to key stakeholders. It basically describes the relationship you want to have with your employees, customers, vendors, and other people that contribute to your success.
The purpose of this step is to describe your values and identify your philosophy or principles for operation. Formulating a philosophy statement is the most important and most difficult part of the planning process. It requires an in-depth analysis of the most fundamental beliefs that underlie your culture and decision making process. In formulating a values or philosophy statement, you will examine:

  • What values do we hold?
  • What do we believe is important?
  • Who and how do we want to treat our stakeholders?
  • How will employees serve our customers?
  • How will managers deal with employees?

The tag-line or motto is usually a phrase or slogan that describes what the customer can expect from the product or service. It can be a feeling or an attitude towards the business or life in some general way. Creating a tag-line requires the leaders or marketing professionals within a company to:

  • recognize and articulate the value that drive their decisions
  • empower employees to make decisions and take action that support these promises
  • understand and do what matters most to their customers

Writing your guiding statement is one of the most difficult steps of the business planning process because it requires an in-depth discussion of your purpose, desired future, and individual beliefs. It expresses the “heart” of the organization. The true test of well-written guiding statements is if they:

  • Are clear and understandable to all employees.

  • Reflect attainable goals.

  • Are brief enough for most people to remember.

  • Clearly specify what business the organization is in, including information about:
    1. What customer needs the organization is attempting to fill (not what products or services are offered).
    2. Who the primary customers are.
    3. How the organization plans to go about its business.

  • Have a primary focus on a single strategic thrust, yet is broad enough to allow flexibility in implementation.

  • Reflect the distinctive competence of the organization.

  • Serve as a foundation from which all decisions can be made.

  • Reflect the values, beliefs, culture and philosophy of operations of the organization.

  • Are worded to serve as an energy source and rallying point for the organization.

When you are writing any of the guiding statement, I suggest that you remember these five basic, but extremely important strategies:

1. Make it Descriptive: The words chosen need to reflect the distinct competence and uniqueness of the organization. Typically, the words you use at a family reunion or neighborhood party to describe your business work best. Think of ways to keep the language appropriate and meaningful to anyone who might be reading the statements.

2. Less is More: Each statement is no more than 25-30 words and is brief enough for most people to remember and even recite. Remember to use the KISS principle – keep it short and simple. Need I say more?

3. Use 8th Grade Language: Complexity is not clarity of communication. Since most people speak and read at an 8th grade level, use language that is easy for everyone to understand. One school of thought is to avoid using words with more than three syllables.

4. Make it Memorable: Guiding statements serve as a foundation from which day-to-day decisions can be made and behavior managed. Select relevant, but dynamic words that serve as a source of focus and excitement. It needs to be catchy, not cutesy!

5. Buy In: Involve your entire leadership team (i.e. Board of Directors, owners and senior managers) in the creation of the statements. You make solicit input on the front-end or comments on the back-end of finalizing the statements from your employees and perhaps even key customers.

Sample mission statements:
Inspiring Solutions – “We enhance the attitudes and actions of professionals through strategic planning, keynote presentations and customized training programs.

A client of Inspiring Solutions - “We are a not-for-profit continuing care retirement community, providing our residents with the highest quality of care and services, honoring their dignity and independence.”

Sample vision statements:
Inspiring Solutions – “We will be nationally recognized in the retirement living industry for inspiring people with practical solutions for positive change.”

Quality Inns - “We will pursue excellence and become the most recognized, respected, and admired lodging chain in the world.”

Sample philosophy statements:
Inspiring Solutions - We believe that quality is whatever the client says it is. Through on-going relationships with our clients, we can help clarify their situation and recommend a strategy to meet their needs. We believe in:

  • Honesty
  • Integrity
  • Respect
  • Quality
  • Flexibility
  • Compassion

IBM’s Foundation
1. The individual must be respected.
2. The customer must be given the best possible service.
3. Excellence and superior performance must be pursued.

Sample tag-lines or mottos:

  • Inspiring Solutions – “Your PEOPLE make the difference and we make a difference in your PEOPLE!”
  • Nike – “Just do it!”

Although a difficult and sometimes painful process, once the guiding statements are created they don’t usually change unless the focus of the organization changes.
A company’s guiding statements are merely words unless made to come alive and provide a source of direction and excitement to its stakeholders. These statements need to be shared with all employees to help fulfill the mission, achieve the vision and follow the principles.

Once I help a team create or refine their guiding statements, they identify effective ways to communicate them to their employees and customers. Here are some examples:

1. Employee handbook and manuals – use during new employee orientation.
2. Company newsletters – write articles that describe examples of the mission in action.
3. Plaques in common areas – communicate your promise to visitors and customers.
4. Business cards – share your promise to other professionals.
5. Company stationery – develop a consistent look and brand with all communication.
6. Payroll stuffers – remind employees about the importance of their jobs.
7. Annual report – communicate to stakeholders the results of your goals.
8. Website – educate prospective customers and employees.
9. Company vehicles – a moving billboard of your motto.
10. Promotional items (pens, calculators, company attire, etc.) – fun gadgets to give away to employees, clients and other stakeholders.
11. Nametags – worn by employees as a reminder that they make the difference.
12. Print and Radio advertisements – educate the public about who you are and what you do.
13. Banners – post throughout the business to promote your purpose.
14. Billboards – visual reinforcement of your business.
15. Answering machines – short clips of how you help your customers.
16. Email signature lines – consistent communication of your guiding statements.
17. Faxes – describe the unique competence of your business.
18. Press releases – announce an event or accomplishment that showcases your business.
19. Meeting agendas – remind and refocus teams on the company’s purpose and goal.
20. Employee awards – recognize employees for their contribution that is consistent with the guiding statements.

Clarifying and creating your guiding statements is a very energizing process. It can bring focus and strength to a team of leaders. If managed properly, the guiding statements give employees a sense of responsibility and pride in their work. When implemented on a daily basis, they serve as the blueprint to a successful future.
 
 


Tip of the Month

Strategic Planning - Why You Should Care!

If your company is doing what it’s always done, it may be losing its competitive advantage from both a customer satisfaction and employee retention perspective. Never before in the history of business and industry, have there been so many changes in healthcare, government regulations, economic conditions, technology, customer needs and expectations, competition, and employment.

The ways in which you manage these changes affect your organizational performance. You can “wait and see” what happens in the industry or your market. Often times, this reactive approach costs the company more time and money, plus it causes your stakeholders to feel more confused and frustrated.

Michele has developed a three-step approach to strategic planning. Review each step below. If you'd like more information regarding the approach, simply follow the link to MicheleMatt.com for specifics around each step.

1) Strategic Planning Preparation
Strategic planning is the process by which the guiding members of an organization assess its current condition, determine a desired future state, and identify actions to take in order to achieve that future. It answers these critical questions:

  • Where are we now?

  • Where are we going?
  • How do we get there?
  • How are we doing?

Click here for more information on Strategic Planning Definition and Purpose.

2) Strategic Planning pro-treatSM
Organizations don't plan to fail, they simply fail to plan. Leaders within an organization participate in a strategic planning process designed to accomplish several important goals. During our pro-treatSM, leaders within an organization participate in an organized process to make decisions on strategies for moving forward and operating proactively for future success.

Click here for more information on the Strategic Planning pro-treatSM.

3) Strategic Planning pro-treatSM - Phase II - Roll-Out and Implementation
After a planning team creates the company's strategic action plans, they often neglect taking their strategic planning process to the next level and answering: How are we doing? In Strategic Planning pro-treatSM Phase 2, we help keep the flame from flickering by offering an often-overlooked component - external support!

Click here for more information on Strategic Planning Roll-Out and Implementation.

Each year since 1991, Michele Matt helps leaders create and/or update their guiding statements and strategic plan. Want to get started? E-mail her today michele@michelematt.com or call toll-free 1-866-225-1249 to learn how she can facilitate a strategic planning process with your board of director and/or your management team.
 


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