Expressing the mission and vision of organizations - The case of Huawei Technologies

University Degree Business and Administrative studies

The Bucharest Academy of Economic Studies

INTERNATIONAL BUSINESS AND ECONOMICS

2010/2011

CONTENT:

Section 1:

Considerations about leadership.................................................................................3

The strategic vision.......................................................................................................4

What is a strategic vision?........................................................................................4

Characteristics of the strategic vision.....................................................................6

Creating a mission statement.......................................................................................7

Characteristics of a mission statement....................................................................7

4. Communicating the strategic vision..............................................................................9

Displaying the Strategic Vision................................................................................9

Section 2:

SC Huawei Technologies SRL – presentation……………………………………..11

Expressing the mission and vision of SC Huawei Technologies SRL…………….11

Conclusions…………………………………………………………………………14

Section 1

1. Considerations about leadership.

Leadership is not a science rather it is an art, a skill that can be developed. Previously it was thought that leaders are born and not made, leadership was considered as a gift, a magic that some people are born with and only those people can become successful and charismatic leaders, who can then develop followers. However, these concepts of leadership do not exist anymore, now it is considered as a trait, a skill that can be developed and learned.

Peter Drucker on Leadership

Peter Drucker is one of the foremost respected authorities on business management philosophy. He dedicated most of his life to the study of management and leadership’s role in the organization. His philosophy is that the foundation of effective leadership is thinking through the organization’s mission, defining it, and establishing it, clearly and visibly. The leader sets the goals, sets the principles, and sets and maintains the standards. He makes compromises, but before accepting a comprise, the effective leader has thought through what is right and desirable. Leaders see leadership as a responsibility rather than a rank and privilege. An effective leader knows that the ultimate task of leadership is to create human energies and human vision. In order to succeed, trust must be earned. This trust is the conviction that the leader means what he says. Finally, effective leadership is not based on being clever; it is based primarily on being consistent. Drucker emphasizes that leadership is a means, and the question to answer is a means to what end.

In simple words we can say that the leadership is all about influencing others when they work together to achieve certain goals.

Importance of Leadership:

Leadership is related to motivation, interpersonal behavior and the process of communication. As Sir Paul Judge (2003, p 19) says, “Thirty years ago it was very much about what you knew, the technicalities of things. Managers now are leaders of their groups, their departments. Although they may well need some specialist knowledge, the human relation part of management job is more important than ever. People have more flexibility and more choices in their careers, which are them selves more fluid, so keeping people motivated are very important.”

The concept of leadership has been changed from time to time but its importance remains the same or increases. Every organization seeks leaders who can take organization on top. We can not neglect the importance of leadership in the organizations. Good leadership involves the effective process of delegation and empowerment.

Few things are more important to human activity than leadership. Effective leadership helps our nation through times of danger. It makes a business organization successful. It enables a not-for-profit organization to fulfill its mission. The effective leadership of parents enables children to grow strong and healthy and become productive adults. Without leadership, organizations move too slowly, stand still and lose their way. Problems of implementation are really issues about how leaders influence behavior and overcome resistance. Leadership is crucial in implementing decisions successfully.

The strategic vision.

Strategic planning is providing direction and meaning to the every day activities of an organization. Strategic planning is used to help an organization focus its energy and to ensure that members of the organization are working toward the same goals. Being strategic means understanding the organization’s objectives, being aware of the resources and incorporating them both into a dynamic environment.

Developing a strategy is a guide that provides the framework for managing effectively and creatively. The first step in strategic planning involves the process visioning; the process of developing a strategic vision statement for an organization. Visioning requires creativity. Visioning is the process by which an organization envisions the future it wants. It brings the members of the organization together to develop a shared image of where they want their organization to be in the future. Once the organization has envisioned where it wants to be, it can begin to work toward its goals.

What is a Strategic Vision?

As Arthur Thompson and Dr. A.J Strickland, (2002, p. 6) say, the strategic vision is the formal expression of the visioning. A strategic vision reflects management’s aspirations for the organization, providing a view of where the organization is going. It spells out a direction and describes the destination. It allows the members of the organization to see the organization in the future. The members of the organization must have a picture in their mind of what success will look like. It portrays in words what the organization seeks to become; how the organization will function and how the organization will look.

Visioning is the starting point of the strategic action plan that helps the organization to achieve its vision over time. As Thompson and Dr. A.J Strickland (2002, p. 32) The strategic vision is a guide and concept that articulates what the organization wants to be in the future and in a language that assumes that the organization is already there. It keeps the organization moving in the right direction and it is the glue that binds the organization and members together. To have a strategic vision, means the organization has a mental picture of going in a specific direction. It inspires its members to act, to sacrifice, to achieve and to take the organization to deeper depths and higher heights. Every effective and successful organization has a clear and inspirational vision. The success grows out of the strategic vision. It is the strategic vision that sets the limits. All organizations have goals and objectives to achieve, but the strategic vision helps illuminate the core values and principles that will guide the organization in the future. It provides a glimpse of possibilities. It evokes deeper meaning and deeper commitment than the goals.

This is a preview of the whole essay

When an organization does not have a strategic vision of where it wants to go then it does not matter how it gets there. The members must see a destination in their minds before they can begin. The members of the organization must know, understand and affirm the strategic vision. The strategic vision gives focus, meaning, direction and power to everyone within in the organization. The strategic vision gives life to the organization as the members walk in the vision. Without a strategic vision there is no direction, no purpose, no motivation and the members within the organization perishes and dies because the welfare of the organization becomes unfocused. Proverbs 29:12 “Where there is no vision the people perish.” The organization struggles from one predicament to the next without an understanding of the overall goals, general strategies and objectives.

The strategic vision is the heart of the organization. It is the image of success. It is the motivator that charts the organization’s future. It energizes the members to achieve a common goal by pointing the way to the future. The strategic vision empowers all the members within the organization to work together. When the vision is lived by the members within the organization, it makes the members accountable to the customers and serves as a guiding principle. Organizations with a clear, concise strategic vision are focused and successful. A compelling strategic vision that connects with what the members care about is a powerful ingredient. Organizations without a strategic vision are unfocused and unsuccessful.

Characteristics of the Strategic Vision

The strategic vision should begin with the questions, “Where are we trying to go, and how do we see the organization three to five years from now?” Answering these questions is the guideline for evaluating what is important, it gathers and incorporates information about the present and anticipates the environment in which the organization will be working in the future. When developing a strategic vision, it should:

Inspire the members.
Draw on the beliefs and environment of the organization.

Serve as a powerful motivator.

Energize the members.
Does not assume that the organization will remain the same as it does today.

Be clearly understood by the members.

Stimulate extra effort.

Give the members a sense of purpose.

Create enthusiasm.

Convey company purpose.

Help an organization prepare for the future.

Asking pertinent questions allow every member within the organization to think outside of the box and tap into their imagination. The strategic vision looks to the future.

Creating the strategic vision begins with the decision and commitment to achieve results. The strategic vision statement should be short, describe a fixed stage and is understood by everyone in the organization.

Each member within the organization should be a part of creating the strategic vision. When the members of the organization are a part of the creation process, they will pursue the vision because it is their vision. If the members of the organization do not accept the vision as their own, the vision is worthless. A shared strategic vision can energize the members of the organization by connecting them to the purpose of the organization. The strategic vision enables the members to see how their effort contributes to the larger picture. The development of the strategic vision consists of forecasting what the future is likely to be. The strategic vision is viewed as interesting and energizing when it creates a new way to view the future and challenges the current state of things. It not only makes the members of the organization think; it provides something new to think about.

The strategic vision should include the beliefs of the organization and the members that make up the organization. Effective organizations are grounded in core values that the members of the organizations believe in and about which they feel passionate.

Creating a Mission Statement

The strategic vision is the guiding star of any organization. Without a strategic vision, the members of the organization loose their way. Any organization that is tasked with the responsibility of developing a strategic vision should include three elements:

Creating a mission statement.

Charting a strategic path (the course to pursue) and
Communicating the strategic vision.

The strategic vision statement is a picture of where the organization will be in the future. It defines the direction in which the organization is heading and how it will succeed in reaching its goal. The strategic vision tells the members of the organization “where we are going” and the mission statement tells “who we are” and “what we do.” The mission statement is the purpose and why the organization exists. It summarizes what the organization does. An organization must have an end to which they are headed. The mission statement guides their decision and determines their strategy. An organization does not dream up the mission statement, it is created out of a need.

The mission statement is a description of the organization’s existence. It is the long run vision of what the organization strives to be, the unique aim that differentiates the organization from similar one and the means by which this differentiation will take place. The mission statement defines the direction in which the organization is heading and how it will succeed in reaching its desired goals. The mission statement is the organization’s calling card. It is part of the organization’s identify. When individuals want to research an organization, they first ask to see a copy of the mission statement because it conveys useful information.

Characteristics of a Mission Statement

The mission statement answers the question why do exist, who do we serve, and what services do we provide? To begin the process of creating a mission statement, it must be based on those three questions. Answering these questions is the guideline for evaluating what is important and to keep the mission statement clear and straightforward. When developing a mission statement, it should:

Define the organization and identifies the organization’s central purpose.
Give direction.
Be concise and compelling.
Easily understood and can be communicated by all members of the organization.

Create an inspiring strategic vision of what the organization can be and can do.

Outline how the strategic vision should be accomplished.
Establishes key priorities.

State a common goal and foster a sense of togetherness.
Create a philosophical anchor for all activities within the organization.

Generate enthusiasm. A “Can Do” attitude.
Express the organization’s values.

Empower the members to believe that every individual is the key to success.

As Chris Komisarjevsky (2000, p. 61) says, the mission statement must be the viewed by the members of the organization, as their own and one that everyone can be committed to. The mission statement serves as the underpinning of what the organization stands for and how it will behave. It is future oriented and portrays the organization, as it will be. It focuses on one common purpose that is specific and not generic. The most important factor of the mission statement is the ability to state the mission statement clearly. It should be short so that it easily remembered. If the members can state the mission statement clearly, it shows how well the members know where the organization is going.

As Verna Allee (1997, p 191) says, the mission statement should include the organization’s definition of success, descriptions of its values, beliefs, philosophies and objectives. Once the organization has defined its beliefs, this should be used to build and define the mission statement. The mission statement draws on the organization’s belief statement. An effective mission statement articulates the organization’s essential nature, its values and its work. It unifies the members of the organization at all levels toward a common goal; it communicates the values throughout the organization; it increases commitment from the managers to the workers and it brings clarity to the desired future.

As Stephen Covey (1989, p. 101) says, the mission statement should be based on what the organization actually does, what it does uniquely or best and what it strives to do and be. The process should include where the company is going, what it wants to be and how it will get there. For the process to succeed, it must be managed in a way that the organization is moving in the direction of its vision and mission. The leader should influence and shape the organization’s goals, motivate the members to achieve the goals, define the organization’s culture and influence the behavior of the members without having to rely on force.

4. Communicating the strategic vision.

Communicating the strategic vision is one of the most critical tasks and the most important process of the organization. The key to gaining widespread commitment to the strategic vision, is to present the vision in such a way that the members will want to participate and freely choose to do so. The organization’s success will depend on the clarity of the strategic vision and whether it has incorporated all the reasons for the organization’s existence. Clear concise communication about the strategic vision paves the way for understanding and acceptance. It has a major effect of the members and the performance of the members.

Communication is an essential responsibility if the strategic vision is to be executed in any organization. The organization’s effectiveness hinges on how well the strategic vision and mission statement is communicated, not only to the members but also to the individuals outside of the organization. The power of the strategic vision derives from the ability to capture the hearts and minds of the organization. It must be a shared strategic vision in order to stimulate action and achieve results. For the strategic vision to be effective, it must be well understood and widely shared by everyone within the organization. As Burt Nanus, (p. 157, 1992) says, the strategic vision is the roadmap for the direction the organization will take. It gives strength to overcome challenges. It brings focus to the organization. The strategic vision is what will be communicated as the organization recruit new employees, new partners and new customers. The strategic vision describes where the organization is destined.

Displaying the Strategic Vision

Finally, the strategic vision statement must be displayed in plain view so that the members of the organization and the public can see the direction the organization must take to get to the future. Visible display of the strategic vision shows the members of the organization and the public that the organization is committed to accomplishing results. If the strategic vision is worth developing, it should be displayed to the members, customers and others who are interested in the company’s organizational commitment. New employees should be asked to read the strategic vision upon their employment. Management must continuously communicate the strategic vision to the members of the organization until it becomes an integral part of the organization’s culture.

As Nickolson, D. (2000, p 54) says, the purpose of the strategic vision statement is to provide focus and keep the members of the organization energized. It should be displayed at all meetings as a reminder to the organization’s goals. It is to be used to help direct discussions about the responses or any needed course of actions. Returning to the strategic vision reminds the members of the organization about their commitment and the basis for the direction. The strategic vision is a source of inspiration. It must be kept at all times in the minds of the members so that it will be a movement from something they want to achieve to something we will achieve. It serves as a visible and emotional stimulus toward the process. The members of the organization must be fully aware of the strategic vision and have made a pledge to make it realty.

Effective communication of an organization vision plays an integral part of the strategic vision. The strategic vision has a major effect of the members and the performance of the members. People outside the organization also need to understand the strategic vision.

As Nickolson, D. (2000, p 52-57) says, the key elements of the effective communication of the strategic vision are:

Simplicity: All jargon must be eliminated. It must be clear concise, easily understood by all within the organization.
Repetition: The strategic vision will sink in deeply only after it has been heard many times.

Metaphor, analogy and example: A verbal picture is worth a thousand words. The members of the organization must have a picture in their mind of what success will look like.
Multiple Forums: Meetings, memos, and newspapers- All are effective for spreading the word about the strategic vision.
Leadership by example: The leader must clearly communicate to the members of the organization where they are taking the organization. The members of the organization must understand what their efforts are for, where they are headed and how they will get there.
Give-and-take: Two-way communication is always powerful.

The strategic vision statement is more than printing words on a piece of paper. It must be instilled into every member of the organization. The strategic vision plus effective communication equals a shared purpose. It must be a shared purpose so that it energizes the members of the organization. In today’s complex organization, no one is autonomous. All members of the organization are interdependent. Interdependence is an asset if all the members of the organization are focused and working together. Interdependence can be a liability if the members of the organization are not focused and working together. To get the members of the organization to care, to think and find solutions, they must be sold on what is important. The important point is to have a clear strategic vision and know the trade-off involved in achieving it. Prioritize actions, encourage and measure in the right direction.

Section 2

The case of SC Huawei Technologies SRL.

SC Huawei Technologies SRL – presentation

SC Huawei Technologies SRL is part of Huawei Technologies Co. Ltd., the largest and equipment supplier in the . It is headquartered in , , .

The company is active in Romania since 2003, developing here the Europe’s Huawei Shared Service Center, having almost 400 employees.

Established in 1988 by , Huawei Technologies is a private high-tech enterprise which specializes in (R&D), production and marketing of communications equipment, and providing customized network services for telecom carriers. Huawei serves 45 of the top 50 and puts 10 per cent of revenue into R&D each year. In Q3 of 2009, Huawei surpassed Nokia Siemens to became the No. 2 supplier of global mobile network gear after market leader .

Expressing the mission and vision of SC Huawei Technologies SRL

Huawei’s vision: To enrich life through communication.

By leveraging experience and expertise in the telecom sector, the aim is to bridge the digital divide and give people the opportunity to join the information age, regardless of their geographic origin. In order to tackle increasing climate challenges, Huawei has deployed a wide range of green solutions that enable customers to reduce power consumption and carbon emissions, contributing to the sustainable development of the social economy and the environment.

Huawei’s Mission: To focus on the customers' market challenges and needs by providing excellent communications network solutions and services in order to consistently create maximum value for customers.

Huawei’s core values are deeply rooted in every aspect of the business. They are the internal driving force for the Company and are commitments to the ecosystem. These values enable the company to provide effective services to customers and to achieve the vision of “enriching people's lives through communication".

Customers First - Huawei exists to serve customers, whose demand is the driving force behind the company’s development. They continuously create long-term value for customers by being responsive to their needs and requirements. The company measures its work against how much value they bring to customers, because Huawei can only succeed through the customers'success.
Dedication - Huawei wins customers' respect and trust primarily through dedication. It includes every effort they make to create value for customers and to improve their capabilities. Huawei values employees’ contributions and reward them accordingly.
Continuous Improvement - Continuous improvement is required to become better partners for their customers, improve their company and grow as individuals. This process requires that Huawei actively listens and learns in order to improve.
Openness & Initiative - Driven by customer needs, Huawei passionately pursues customer centric innovations in an open manner. The company believes that business success is the ultimate measure of the value of any technology, product, solution or process improvement.
Integrity - Integrity is the most valuable asset. It drives the company to behave honestly and keeps their promises, and, thus, win customers’ trust and respect.
Teamwork - Success comes only through teamwork. By working closely in both good times and bad, Huawei lays the foundation for successful cross-cultural collaboration, streamlined inter-departmental cooperation and efficient processes.

As an integral part of the society in which it operates, Huawei firmly believes in contributing back to the local countries and communities in which it operates, and strongly encourages its employees to do likewise. Their aim is to use their expertise in the telecommunications field to enrich the lives of people worldwide who still have limited access to communications in a world where the ability to be connected is increasingly becoming a necessity.

Being a company with strong innovative capabilities, an integral part of Huawei’s core values is openness & initiative. Only by being open and and learn more form others, new goals can be set up. In the company’s mission statement, is stated the belief that the most important qualities of leaders are direction, peace and openness to tolerance.

Huawei’s strategy, applied in order to achieve the company’s vision:

Driven by customer requirements, Huawei gradually builds end-to-end integrated advantages across four areas: Telecom Network Infrastructure, Applications and Software, Professional Services, and Devices,

In order to meet the needs of the customers, Huawei focuses on a strategy of continuous customer-centric innovation. The goal of R&D product is to deliver timely solutions for anticipated and actual customer needs by developing innovations in technologies, products, solutions and services.

There are more than 43,600 employees engaged in R&D and 17 existing research institutes in countries including the U.S., Germany, Sweden, Russia, India, and China. The company has set up over 20 joint innovation centers with top operators to transform leading technologies into a competitive edge for customers and achieve business success.

Conclusion

With a success strategy, with well defined and applied vision and mission statements, in just 18 years, Huawei has grown from a corporate midget into a mighty global contender in one of the world's key industries, having more than 95000 employees around the world.

The strategic vision keeps the organization moving in the right direction and it is the glue that binds the organization and members together. It is the capability to look beyond the moment and look into the potential of tomorrow. The success of the organization grows out of the strategic vision.

When developing a strategic vision it will stretch the imagination and motivate its members to rethink what is possible. The strategic vision must be clear concise, easily understood by all within the organization and accessible to those outside the organization who interact with it. The strategic vision consists of the mission statement, a course of how to achieve the vision and method of communicating the vision to the members of the organization and the public.

The vision and the mission statements are the critical elements of a successful business. The vision and mission are linked together. The vision addresses the where and the mission is the how. The vision is a goal and the mission is a strategy. The vision and the mission are the guiding principles and values of the organization. The values that the members have give direction to the organization and define the spirit in which things in the organization should be accomplished. A commitment flows from the values because of the organization’s commitment to the members, the members in turn, become committed to the organization. An organization can reach the future by focusing on where the organization is headed. Every organization must have an end to which they are headed. To be an effective organization there must be a strategic vision because “Where there is no vision, the people perish.”

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Appendix 1

Snapshot Views on Leadership

As Clawson (2006, p. 44) says, “Leadership is the ability and willingness to influence others so that they respond voluntarily.”
As Bennis (1994, P. 139) says, leadership is “a fundamental and profound engagement with the world and the human condition.” Quote from Robert Terry of the Hubert Humphrey Institute of Public Affairs
As Phillips (1992, p. 3) says, “Leadership is leaders inducing followers to act for certain goals that represent the values and the motivations – the wants and needs, the aspirations and expectations – of both leaders and followers. And the genius of leadership lies in the manner in which leaders see and act on their own and their followers’ values and motivations.”
As Boy Scouts(1972) says, “Leadership is a process of getting things done through people. Leadership is not a science.”
As Bennett & Steinbrecher (2003, p. 32) say, “Leadership is the ability to make things happen by encouraging and inspiring others and acting as a catalyst for change.”

“Heart-centered leadership is having the wisdom, courage and compassion to lead others with authenticity, humility and service.”

As James C. Georges (Maxwell, 1993, p. 249) says, „remove for a moment the moral issues behind it (leadership), and there is only one definition: Leadership is the ability to obtain followers.”
As James Kouzes and Barry Posner (2002, p. 383) say “Leadership is not about position or title. It’s about relationships, credibility, and what you do.”
As Maxwell (1991, p. 27) says, “Leadership is influence – nothing more, nothing less.”

See Appendix No.1