Is your business at risk? Uncover the hidden crisis

A few years ago, an entrepreneur from Kerala’s northern district sought our consultation. He had been in the food industry for four decades and was doing reasonably well, but he faced three key challenges:

•    He felt that many operations in his firm no longer adhered to the vision and values of his father, who founded the business, nor to his own.
•    Many initiatives that required discussion and consensus were not being implemented.
•    Despite decades of success, the business had not yielded significant profits or savings.

These challenges are common among small and medium-sized entrepreneurs. Before we delve into how these issues were resolved, let’s first explore our perspective on what a firm or business venture should be.

The soul of an organization

An organization should be recognized as a living entity, complete with a soul, mind, and body.
Every venture begins with the realized thoughts and dreams of its entrepreneur or a group of entrepreneurs.

The organization’s soul embodies this vision or dream—the means and ways to achieve it. It is nearly impossible to fully convey this vision to others. Yet, this vision guides the entrepreneur through crises and uncharted waters on their journey. Let’s break down the concepts of vision, mission, and purpose to ensure they are as understandable as possible.

The mind and body of an organization

The mind refers to the collective consciousness of the organization. This mindset is shaped by the organization's practices, policies, dynamics, and character. It represents the collective awareness of its employees, entrepreneurs, customers, and service providers who interact with the organization.

The body of the organization includes its infrastructure (offices, vehicles, computers), employees, technology, and processes. When the soul, mind, and body are in perfect harmony and alignment, we can consider it a well-functioning organization.

During the growth and evolution of an enterprise, the organizational culture (mind) often deviates from its original vision and values (soul). If the spirit and mind of the organization are aligned but the infrastructure and processes (body) are inadequate, the organization will struggle to realize its vision and goals.

How to fix this

Should the core visions of a business be set in stone? The answer lies in creating clear mission and vision statements. Let’s see how a business can define its vision and mission.

Vision

A vision statement clearly defines what the promoters envision the organization to become in the future. It should be simple, concise, and inspirational, guiding the organization’s activities.

Tips for crafting a vision statement

Start with words that energize, motivate, and provide clarity to move toward your goals. Choose words that vividly depict the future goal.

Specify the scope and nature of the vision and consider setting a time frame for achieving the goal.
Include the core values and principles that will guide the organization.
Examples of vision statements:

Tesla: "To create the most compelling car company of the 21st century by driving the world's transition to electric vehicles."

Google: "To provide access to the world's information in one click."

Mission

A mission statement articulates the organization's purpose, main activities, and the impact of those activities. It outlines the course of action needed to achieve the goals and vision specified in the vision statement. Although similar at first glance, a careful reading reveals the difference between a mission statement and a vision statement.

Key points for a mission statement:

•    Clearly state why the company exists and its purpose.
•    Identify the beneficiaries of the company’s activities.
•    Define the core activities of the organization and the means to attain its goals.
•    Highlight the values that guide daily activities.
•    Specify the impact or outcome the organization aims to achieve.

Examples of mission statements:

Tesla: "To accelerate the world's transition to sustainable energy."
Google: "To organize the world's information and make it universally accessible and useful."

After establishing the vision and mission, the next step is to regularly check whether the mind and body of the organization are aligned with its spirit (soul). If there are deficiencies, they should be identified and addressed.

The entrepreneur mentioned at the beginning of this article is now thriving, having resolved all the issues he faced. The next articles will detail how these problems were addressed.

(The author is the Director of Hanhold Consulting Pvt. Ltd. E-mail: [email protected] Web: www.hanhold.com Tel: 62386 01079)

                        *This article was originally published in Dhanam Business Magazine