9:58 7 X chapter 4 PDF - 3.7 MB CHAPTER 4 CORPORATE MISSION Y our organization's mission is an essential part of strategy development. Notice we used the word mission as opposed to mission statement. The mission statement is just the verbal embodiment of the mission. During the 1990s, organizational leaders would often spend days at an off-site meeting developing a mission statement. When they returned, they would share the state- ment with employees, hang a framed copy on the wall in the lobby, and then go on with life as usual. This approach had little impact on strategy or on the alignment of employee performance. Contrast the above approach with that taken by the Frito-Lay company in the 1990s. Frito-Lay established a mission and mission statement of having "salty snacks within an arm's reach of consumers anywhere in the world." It set four values, or "imperatives," by which it intended to reach that goal: Cost, Quality, Service, and People. Cost referred to all aspects of cost, from low manufacturing cost to reasonable retail cost. Quality referred to the highest quality in the industry, Service referred to the best possible customer service, and People represented treating employees well. These values became ingrained into the culture. You would be able to pull an hourly manufacturing employee off the production line and she could tell you the mission and values. In fact, she could tell you how she herself had an impact on cost, quality, service, and people! Specific to healthcare, hospitals and other organizations also seek to contain signifi- cant cost increases, improve overall quality of healthcare and its delivery, and maximize human resources, which account for our most significant cost. How Mission Affects Strategy An organization's mission (e.g., salty snacks within an arm's reach of all consumers) leads directly to the conceptualization and development of a strategy to achieve that mission. If the "salty snacks" example were your mission, what strategies could you think of to achieve it? This "mission leads to strategy" linear thought process has limitations, however. The risk is that the way we view the organization now remains the way through which we develop strategy, and thus we miss the brand new ideas and new markets. Why couldn't Frito-Lay's mission statement have been to have salty snacks and chocolate within an arm's length of consumers? If the organization's executives view the world of strategic possibili ties solely through the lens of salty snacks, they might miss significant opportunities. This concern brings us to the proposition that the relationship between strategy and mission is Scanned with CamScanner 24 Strategic Analysis for Healthcare EXHIBIT 4.1 Mission Circular Relationship Between Mission and Strategy circular rather than linear-that is, though mission may lead to strategy, strategic may lead to a revision of the mission and new strategic development (see exhibit 4.1).will be. The mission should not be three unmemorable paragraphs. Those missions end up framed, hung on a wall, and irrelevant in the everyday work, behavior, and decision- making of employees and managers. EXHIBIT 4.2 University Mission statement: To enhance the health and wellness of our patients and communities, providing state-of-the-art clinical care and community leadership with compassion, dignity, of Maryland and respect. Capital Region Health's Mission Source: University of Maryland Capital Region Health (2020). Statement Scanned with CamScanner Our Vision This component describes where we are going with the organization in the future. It is the stretch of the mission statement. As with all parts of the mission, the vision may be limited by a variety of factors. Consider that in the mid-1970s, the executives at Sears believed that the retail industry was maxed out and provided little opportunity. This view constrained management's vision of retail, and it caused the leadership to consider other possibilities for growth. It directly led to the development of a nonretail strategy of expansion into financial services, the creation of the Discover credit card, the acquisition of the Dean Witter stock brokerage firm, and so on. Contrast this view of the retail industry with the view held by Sam Walton and his executives around the same time. Walmart's view was that retail held unlimited possibilities, so its corporate vision was to maximize that existing opportunity. Walmart's vision translated into an aggressive expansion strategy, and now the organization is becoming a major player in healthcare as well. In addition to describing where the organization is going in the future, the vision can get employees and investors excited, "bought in," and passionate about the chosen direction. Griswell and Jennings (2009) write that great business leaders compose corpo- rate visions that are also intended to develop and engage passion in their employees. The leaders who get their corporate vision statements right are the ones who know how to align purpose and passion. Griswell and Jennings point to Walmart's original mission: "To give ordinary folk the chance to buy the same thing as rich people." This vision of empowering the common person permeated the organization and excited the employees, causing them to believe they were doing something socially good, not just good for the organization. (Consider this vision in the context of the 1970s' hyperinflation and significantly greater income dis- parity between the "haves" and the "have nots.") The employees' passion to give people of limited financial means access to products and quality that ty that previously were only accessible to people with greater wealth drove phenomenal growth from the 1970s to the 2010s. For evidence, just look at Walmart's financial results. So many "ordinary folk" purchased products at Walmart that it became one of the top businesses in the United States and has expanded internationally. Walmart is now seeking to be a leading provider of primary care in the United States, with in-store clinics staffed by mid-level providers. In some regards, Walmart has always been in healthcare via its deeply discounted pharmacies, but now it is expanding its approach. According to Griswell and Jennings (2009), the true measure of the effectiveness of a stated vision is the vision's ability to get the organization's employees excited and engaged with the organization and its future. Having the right vision is central to creating the employee passion that drives business results. Passion, in turn, can be thought of as the enthusiasm employees feel from being a part of the organization's vision. Who does not want to be a part of changing the world or, from a business perspective, helping take an organization from average to number one? The vision statement of University of Maryland Capital Region Health (see exhibit 4.3) clearly articulates that the organization wishes to be the healthcare system of choice recognized for excellence. Beyond clearly stating an outlook for the future, this vision might also include opportunities to expand even further as development con- tinues-for example, becoming the top-rated system in the country and even expanding globally. Scanned with CamScanner 26 Strategic home EXHIBIT 4-3 Vision: To be the healthcare system of choice recognized for clinical, academic, and service University excellence through compassionate and innovative healthcare. of Maryland Capital Region Source: University of Maryland Capital Region Health (2020). Health's Vision Statement9:58 4 X chapter 4 PDF - 3.7 MB Scanned with CamScanner 24 Strategic Analysis for Healthcare EXHIBIT 4.1 Mission Circular Relationship Between Strategy Mission and Strategy circular rather than linear-that is, though mission may lead to strategy, strategic analysis may lead to a revision of the mission and new strategic development (see exhibit 4.1). How to Develop a Corporate Mission A well-constructed corporate mission has three distinct components. The first is the "pure" mission statement, second is the overarching vision, and third are the guiding principles: 1. Our mission: what we do 2. Our vision: where we are going 3. Our values: how we will get there Our Mission This component describes what the organization now does or is aspiring to do as a "go- forward" mission. It is shaped, limited, or stretched by how executives see or do not see themselves, the organization, competitors, the industry, customers, and the economy. Ibarreche (2012) suggests considering the following issues: needs or wants; to whom, where, how; difference from competition; other sources of uniqueness; self-concept; exter- nal image; philosophy; people; other stakeholders; and quality. Exhibit 4.2 provides an example of a mission statement from University of Mary- land Capital Region Health (formerly Dimensions Healthcare System). One can read this simple statement and clearly understand what this system does: "To enhance the health and wellness of our patients and communities, providing state-of-the-art clinical care and community leadership with compassion, dignity, and respect." The shorter the statement, the easier to comprehend, and the easier it is to recall a mission, the more effective it will be. The mission should not be three unmemorable paragraphs. Those missions end up framed, hung on a wall, and irrelevant in the everyday work, behavior, and decision- making of employees and managers. EXHIBIT 4.2 Mission statement: To enhance the health and wellness of our patients and communities, University providing state-of-the-art clinical care and community leadership with compassion, dignity, of Maryland and respect. Capital Region Health's Mission Source: University of Maryland Capital Region Health (2020). Statement Scanned with CamScanner Our Vision This component describes where we are going with the organization in the future. It is the stretch of the mission statement. As with all parts of the mission, the vision may be limited by a variety of factors. Consider that in the mid-1970s, the executives at Sears believed that the retail industry was maxed out and provided little opportunity. This view constrained management's vision of retail, and it caused the leadership to consider other possibilitiesAs a concluding example, consider Ascension's mission, particularly the future- oriented vision section (exhibit 4.6). The mission of Ascension is transformational, which will excite current employees, attract new employees, and engage investors (e.g., if the organization were to seek investors for a bond issue). Regarding how the mission, vision, Scanned with CamScanner napier 4: Corporate Mission 27 EXHIBIT 4-5 Mission: To enhance the health and wellness of our patients and communities, providing state-of the- University art clinical care and community leadership with compassion, dignity, and respect. of Maryland Capital Region Vision: Health's To be the healthcare system of choice recognized for clinical, academic, and service excellence Complete through compassionate and innovative healthcare. Corporate Values: Mission Dignity Excellent service Accountability Quality Open communications Innovation Safety Source: University of Maryland Capital Region Health (2020). ASCENSION EXHIBIT 4-6 Our Mission, Vision and Values guide everything we do at Ascension. They are foundational to Ascension our work to transform healthcare and express our priorities when providing care and services, Mission particularly to those most in need. Mission Rooted in the loving ministry of Jesus as healer, we commit ourselves to serving all persons with special attention to those who are poor and vulnerable. Our Catholic health ministry is dedicated to spiritually centered, holistic care which sustains and improves the health of individuals and communities. We are advocates for a compassionate and just society through our actions and our words. Vision We envision a strong, vibrant Catholic health ministry in the United States which will lead to the transformation of healthcare. We will ensure service that is committed to health and well- being for our communities and that responds to the needs of individuals throughout the life cycle. We will expand the role of laity, in both leadership and sponsorship, to ensure a Catholic health ministry in the future. Values Service of the Poor: Generosity of spirit, especially for persons most in need Reverence: Respect and compassion for the dignity and diversity of life . . Integrity: Inspiring trust through personal leadership Wisdom: Integrating excellence and stewardship Creativity: Courageous innovation Dedication: Affirming the hope and joy of our ministry Source: Ascension (2020). Scanned with CamScanner 28 Strategic Analysis for Healthcare and values of an organization can attract new and high-level talent, Janice E. Nevin, MD, MPH, president and CEO of Christiana Care Health System says: The other piece that I get excited about is the potential of gene editing, and particularly the CRISPR technique. In many ways, I think this is an evolution in how we will think about treating illness of the kind that occurred when we discovered antibiotics. And at Christiana Care, we have the only gene editing institute in the country that's embed- ded in an NCI-designated community cancer center. So why would the head scientist of the gene editing institute want to be in an organization like Christiana Care? A lot of it's around our mission, and our values, and behaviors. He wants to be able to interact regularly with the physicians [who] care for patients with cancer, and with the patients themselves (Nuzum 2018).According to Griswell and Jennings (2 of a stated vision is the vision's ability to get the organization's employees excited and engaged with the organization and its future. Having the right vision is central to creating the employee passion that drives business results. Passion, in turn, can be thought of as the enthusiasm employees feel from being a part of the organization's vision. Who does not want to be a part of changing the world or, from a business perspective, helping take an organization from average to number one? The vision statement of University of Maryland Capital Region Health (see exhibit 4.3) clearly articulates that the organization wishes to be the healthcare system of choice recognized for excellence. Beyond clearly stating an outlook for the future, this vision might also include opportunities to expand even further as development con- tinues-for example, becoming the top-rated system in the country and even expanding globally. Scanned with CamScanner 26 Strategic tom EXHIBIT 4-3 Vision: To be the healthcare system of choice recognized for clinical, academic, and service University excellence through compassionate and innovative healthcare. of Maryland Capital Region Source: University of Maryland Capital Region Health (2020). Health's Vision Statement Our Values (Guiding Principles) The third component describes how the organization will achieve the mission and vision. The values are guiding principles that inform employees and constrain actions (to the extent that management truly believes them and holds people accountable). Values may involve such areas as fiscal responsibility, respect for employees, quality, and environmental responsibility. Actions that violate the values will be rejected by employees, and actions that are consistent with the values will survive. University of Maryland Capital Region Health's values are shown in exhibit 4.4. An employee who understands the organization's values and sees them reinforced by management will appreciate the commitment to high integrity and customer satisfac tion. Conformance to the values will be significantly higher than if the values had not been articulated. EXHIBIT 4.4 University of Maryland Capital Region Health: University of Maryland Respects the dignity and privacy of each patient who seeks our service. Capital Region Is committed to excellent service which exceeds the expectations of those we serve. Health's Values Accepts and demands personal accountability for the services we provide. Statement Consistently strives to provide the highest quality work from individual performance. Promotes open communication to foster partnership and collaboration. Is committed to an innovative environment; encouraging new ideas and creativity. Is committed to having its hospitals meet the highest standards of safety. Source: University of Maryland Capital Region Health (2020). Bringing It All Together Exhibit 4.5 shows the mission, vision, and values of University of Maryland Capital Region Health (formerly Dimensions Healthcare System). As a concluding example, consider Ascension's mission, particularly the future- oriented vision section (exhibit 4.6). The mission of Ascension is transformational, which will excite current employees, attract new employees, and engage investors (e.g., if the organization were to seek investors for a bond issue). Regarding how the mission, vision, Scanned with CamScanner inapter 4: Corporate Mission 27 EXHIBIT 4-5 Mission: To enhance the health and wellness of our patients and communities, providing state-of-the- University art clinical care and community leadership with compassion, dignity, and respect. of Maryland Capital Region Vision: Health's To be the healthcare system of choice recognized for clinical, academic, and service excellence Complete through compassionate and innovative healthcare. Corporate Values: Mission