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© BBG, LLC 2005 |
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A Better Board Governance Commentary |
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Creating Stronger Organizations by Providing |
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Better Board Governance.com |
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“To become the most innovative global marketer and distributor of wines.”
This statement clearly expresses the vision of the company for all to see. It guides the thinking of the board, management, employees, customers and suppliers. Of course, there is more. There is a list of priorities (read mission) and a list of goals. The strategy is at least three steps removed from the vision: vision, then mission, then goals and then strategy. This model, called a strategy pyramid by some, has worked well for Gallo. Also on its Web site is a copy of an article written by Lisa Zimmerman in the Nov./Dec. issue of “Market Watch,” in which she said, “The genius of Ernest and Julio Gallo was that they foresaw in the ‘70s that there would be an evolution in the style of wine the American consumer was drinking.” Gallo’s vision today may very well hold them in good stead for the next wave of consumer preferences.
In an article published on the Website 1000ventures.com, the founder noted that the strategy pyramid is a top-down approach that works best in a known and stable environment, building on existing competencies, capabilities, products and markets. Though he postulates that a different, more nimble, “Top-down + Bottom-up” model may work better in less stable and more uncertain environments, there remains no doubt that vision remains the sine qua non of the board leadership function. He began his article with a Japanese proverb that ends this one.
“Vision without action is a daydream. Action without vision is a nightmare.”
Richard Nida, PhD |
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The first President Bush continually had a problem with “that vision thing.” Some wags said that he just didn’t get it. The “it” may be hard for some people to presage, or even to recognize when presented to them, but it needs to be present in the boardroom, internalized by each board member, and captured, documented and communicated with key stakeholders. Recent research reported by BBG (see Research Bits) noted that companies that published a vision statement on their Web sites or in their annual reports were profitable more often than those that did not publish a vision statement. The conclusion has to be that vision matters.
So how does a board of directors get that vision thing? Ian Percy, an inspirational speaker, prefers to substitute the evocative phrase “The Richly Imagined Future” for vision. He notes that this phrase has more spirit and is much more likely to engage creativity to produce a seeing of the future as though it were already here. Good. Call it what you will, but know that it must be present to guide an organization’s path. Capturing vision requires focused attention on the visioning process, honest communication among the members of the board, and sufficient time for thoughtful consideration and careful documentation. Then, to be truly the guiding light for the organization, it has to be lived by board members and shared widely with employees, shareowners, customers and suppliers.
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