Edit ModuleShow Tags

The sixth leadership fundamental


Published:

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}

Edit Module
Laurence B. Valant

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.

Get more of our current issue | Subscribe to the magazine | Get our Free e-newsletter

Edit ModuleShow Tags

Archive »Related Articles

So you wanna make a movie...

I'm selling my memoir, "Cheap Cabernet: A Friendship", to Hollywood for life-changing money: $3.5 million sticks in my head for no good reason ― it's just the number I made up.

Political economics are worth watching under Trump

In retrospect, Trump’s election should not be a surprise. It’s just that “the other side” has gained power after eight years of an equally remarkable American feat – the election of our first African American president whose power base was also grassroots in nature.

Colorado Business Hall of Fame Laureate Sue Anschutz-Rodgers

In a diverse life as a businesswoman and energetic philanthropist, especially for causes in rural Colorado, Sue Anschutz-Rodgers remains daring at age 81.
Edit ModuleShow Tags

Thanks for contributing to our community-- please keep your comments in good taste and appropriate for our business professional readers.

Add your comment:
Edit ModuleShow Tags
Edit ModuleShow Tags Edit ModuleShow Tags
Edit ModuleShow Tags Edit ModuleShow Tags
Edit ModuleEdit ModuleShow Tags Edit ModuleShow Tags