More By This Author

Current Issue

Current Issue

Posted: February 28, 2011

The sixth leadership fundamental

It's a vision thing

Laurence B. Valant

Editor's note: Here is another valuable excerpt from the new success book by national business consultant Laurence B. Valant and partner Gayle W. Hustad, "Lead and Manage! The definitive guide for getting the results you want."

Leadership Fundamental #6 - Formalizing the vision in a written statement

Leaders must understand the power of their vision to impact their company's bottom line. Once the previous leadership fundamentals are defined, it is the job of the CEO or the division leader to formalize, in writing, this vision for the company. This written statement will define quantitatively what success looks like. This formalized statement says, "Here is where we will go. Here is how we will get there."

The leader's written vision must include quantitative deliverables and the broad timing of their accomplishment. Everyone in the organization must be able to understand what is required for the successful completion and implementation of the vision. The deliverables must be quantitative, specific in terms of revenues and include the key metrics.

Guidelines for formalizing the vision statement:

• Broadly state the direction of the company. The strategic plan and business plan will provide the specificity.

• Break the deliverables into five-year periods.

• Provide enough information that others can translate this statement into the tools required to guide the business: the strategic plan, the business plan, the capital budget, and the operating budget.

• Quantify your deliverables so that everyone in the organization can understand and commit to working toward clearly defined goals and objectives.

• Update quarterly. You will constantly gain more information and recognize changes in your target markets and the overall economy. Your formal vision statement must be updated regularly to reflect new insights.

• Use your formal written statement to broadly define the requirements for key management positions as well as business unit leaders and their key direct reports.
o If you are considering a stock option plan, award available shares based on actual incremental residual income performance.

Summary

Using the tools I've outlined, those in leadership roles will achieve projected results. Vision. Overarching strategy. Organization. Management Selection. Formalized vision. Compensation strategy. With this leadership foundation, extraordinary performance becomes absolutely possible.

{pagebreak:Page 1}

Laurence B. Valant is President and CEO of Valant & Co., a Denver-based business performance improvement consultancy that has worked with almost 300 firms to increase their value by billions of dollars. He is co-author of the hot-selling new book, “Make Plan! With Effective Execution” and now, “Lead and Manage!” Valant can be reached at lvalant@valantco.com or at 303-589-3840. If you want more information or would like to order a copy of “Stop Breaking These Rules! 100 Hard-Hitting Truths for Business Integrity and Performance,” please visit www.valantco.com.

Enjoy this article? Sign up to get ColoradoBiz Exclusives. The opinions expressed in this article are solely that of the author and do not represent ColoradoBiz magazine. Comments on articles will be removed if they include personal attacks.

Readers Respond

There's a lot of confusion among business writers about the meaning of some commonly used terms like purpose, vision, values, mission and goals. This article seems to mash them all into one -- vision. This lack of distictions reduces the potential impact of the advice. Additionally, most business thought leaders agree that vision when written by the leader is almost totally ineffective. Involvement by the entire team affected is what elicits what is usually called "buy in" and resutls in aligned action toward actual accomplishment. By Robert White on 2011 02 28

Leave a comment





Remember my personal information

Notify me of follow-up comments?

Please enter the word you see in the image below:



ColoradoBiz TV

Loading the player ...

Featured Video