InformationWeek Issue Jan. 27, 2003 CEO Visions 2003: Looking Beyond the Storm .

InformationWeek IssueInformationWeek IssueJan. 27, 2003Jan. 27, 2003

CEO Visions 2003: Looking Beyond the Storm

www.Informationweek.com

Who is paying federal taxes?Who is paying federal taxes?

To be in the top 25% of all tax payers you need to earn:

$52,965.

To be in the top 50% of all tax payers you need to earn:

$26,415

Who is paying federal taxes?Who is paying federal taxes?

Percentiles Share of AGI % of Fed. Taxes Paid

Top 1% 19.5% 36.2%

Top 5% 34.0% 55.5%

Top 10% 44.9% 66.5%

Top 25% 66.5% 83.5%

Top 50% 86.8% 96.0%

Bottom 50% 13.2% 4.0%

Chapter 5 SummaryChapter 5 SummaryInformation Systems Can Redefine

Competitive Boundaries

Section 1 – The First Of Three Section 1 – The First Of Three Perspectives: The Business EnvironmentPerspectives: The Business Environment

Chapter 1 – Business and Information Systems Management

Chapter 2 – Business Competitive Environment

Chapter 3 – Porter Competitive Model Chapter 4 – Airline Industry Analysis Chapter 5 – Information Systems Can

Redefine Competitive Boundaries

Networks Cross Company Networks Cross Company Boundaries to Reap BenefitBoundaries to Reap Benefit

Efficiency – maximizing output while minimizing expense and unnecessary effort.

Effectiveness – creating a strong impression in the overall scheme of the business by broadening tasks, activities and even entire jobs.

Competitive Advantage – creating Interorganizational Systems through strategic alliances (extended enterprise) and links with customers.

Alliances Provide Growth Alliances Provide Growth OpportunitiesOpportunities

Three major markets – North America, Europe, and the Pacific Rim.

Fight your competitor in your market or face the possibility of your competition fighting exclusively against you in your own market.

Electronic Data InterchangeElectronic Data Interchange

Exchange of routine business transactions in a structured, computer-processable format.

Logical extension of existing systems. Obstacles – format incompatibility, timing

windows, service cost, etc. EDI Value Added Networks – support for

electronic mailbox to address time windows, multiple routing paths, ensuring data format compatibility between systems

E-mail Enabled ApplicationsE-mail Enabled Applications

Non-simultaneous communication.

Replaces traditional paperwork as forms are filled out and submitted via electronic mail.

Possible Exam QuestionsPossible Exam Questions

1. What advise would you give to a company that is contemplating several new strategic alliances?

2. How can information systems contribute to establishing successful strategic alliances?

Chapter 6 IntroductionChapter 6 Introduction

Business Vision

What we’ve covered…What we’ve covered…

Course Overview Business Competitive Environment Porter Competitive Model Airline Industry Analysis Information Systems – redefining

competitive boundaries

What’s next . . .What’s next . . .

VisionStrategyTactics

Business Plan

• Competitive Options• Roles, Roles and Relationships• Redefine and/or Define• Telecommunications as the Delivery Vehicle• Success Factor Profile

A Systematic ApproachSection II: Company Section II: Company

PerspectivePerspectiveShown in the model are Shown in the model are

the business and IS the business and IS

factors that need to be factors that need to be

addressed to successfully addressed to successfully

use information systems use information systems

to gain a competitive to gain a competitive

advantage.advantage.

Primary Objective of ChapterPrimary Objective of Chapter

To understand the important of establishing a

well understood vision as the starting point in

directing, posturing and running a business.

The Vision ProcessThe Vision Process

To establish a clearly vision of the future

To provide a basis for sharing values and views

Uncertainties of a VisionUncertainties of a Vision

The dynamics of the market (customers). Rapidly changing technologies that frequently

offer new product life cycles. The logic and need to address changing employee

values and traditional ways that work is done. The shift from the old to new regulatory practices

in many industries.

USAAUSAA

Property and Casualty insurance and financial services institution based on membership of military personnel and their dependents.

General Robert F. McDermott, CEO and President and his role of the business visionary

Whirlpool CorporationWhirlpool Corporation

The World’s Largest Manufacturer and Marketer of Major Home Appliances

David Whitwam, CEO in 1987. Initiated global vision in 1988

Vision and Information SystemsVision and Information Systems

ConclusionsConclusions

1. Leadership is a key factor in establishing an

effective vision for an organization.

2. While accomplishing this can represent a major challenge, it can be a critically important thing to do to assure the long term success of the organization.

Chapter 6Chapter 6

Business Vision

CEO Job DescriptionCEO Job Description

The primary job of a CEO is deal with the long-term viability of the business.

Leaders combine vision with communication that leads to a shared purpose.

A leader sets the vision which is different from being a visionary.

The essence of competitiveness isvision, leadership and a hunger to succeed.

P. R. VagelosChairman and CEOMerck

A Business Vision

• A vision is a photograph of the future.

• It is a self-image that deals with what the business wants to look like over the long range future.

• Business visions are realistic, credible and attractive to people within the organization.

Jack Welch Vision for GEJack Welch Vision for GEHis vision was for GE to become the most competitive enterprise on earth.

His wanted to create a small company spirit in a big company body, to build an organization out of an old line industrial company that would be high spirited, more adaptable, and more agile than companies one-fiftieth the size.

He wanted GE to be a company where people dared to try new things—where people felt assured in knowing that only the limits of creativity and drive, their own standards of personal excellence, would be the ceiling on how far and how fast they move.

Larry Ellison Vision for OracleLarry Ellison Vision for Oracle

To be the world leader in providing software applications over a network and hardware designed and priced to serve those needs.

Ellison suggests that the software industry as we know it today will vanish and be replaced by a service industry.

Microsoft VisionMicrosoft Vision

Empower people through great software, anyplace, any time and on any device.

ValuesBeliefs

Principles

VisionMission

Goals

Culture

Objectives and

Measurements

Strategies

Tactics

Authorityand

ResponsibilityBusinessPlan

The Vision ThingThe Vision Thing

Organizations are frequently brought to crisis by

conflicts over basic issues of mission, values, and

vision.

Without these basic agreements in place, no

organization is truly viable at least over a long term.

Mission, Vision and ValuesMission, Vision and Values

Mission, vision and values are the glue that holds an organization together.

They describe what you're trying to do, how you want to go about it, and where you're headed.

Knowing these things helps to keep your organization on track.

These crucial factors provide a yardstick to measure present performance and plans against aspirations.

Mission, Vision and ValuesMission, Vision and Values

• MISSION is the reason an organization exists.

• The founders' intentions.

• What they intended to achieve by starting the organization.

• This must be reexamined and refreshed periodically if an

• organization is to remain dynamic.

.

•

VisionVision

•VISION is what keeps people within an organization moving forward,

even against discouraging odds.

•Vision is the most powerful motivator in an organization.

•If it's vivid and meaningful enough, people can do unbelievable things to

bring it to realization.

•But if it's lacking, no amount of resources will be able to get people to

make any kind of a concerted effort.

Values (Culture)Values (Culture)VALUES manifest in everything you do as a group, not only your public

programs, but also how you operate. One organization may identify

access as a primary value. When they plan programs, they think

foremost about how to remove the barriers and encourage the widest

possible participation. Another group might value product quality

above all else. When they assign budget priorities, they opt

for expenditures that improve quality above all others.

Articulating values provides everyone with guiding lights, ways of

choosing among competing priorities and guidelines about how people

will work together.

Gerstner and IBM Gerstner and IBM

Lou Gerstner caused a stir two months after

becoming IBM’s CEO when he declared at his major

significant press conference that the last

thing IBM needed was to proclaim a grand vision.

Culture ChangeCulture Change

Changing IBM's culture was Gerstner's most challenging

long-term task.

Early in his tenure, he told employees, “We've lost $16

billion in the last three years; Fortune magazine says we're a

dinosaur. Don't you think we ought to change? It's pretty

obvious what we're doing isn't working."

Gerstner ApproachGerstner Approach

Gerstner constantly asked managers, "What are your

customers telling you?

Do you understand your market?

Have you segmented your market?"

He ran IBM like the customer that he used to be.

He believed that five years were required to transform

an enormous, far-flung organization like IBM.

Executive VisionExecutive Vision

If a company has restructured where do they turn for business performance and financial improvement?

Job experience can easily count more than intuition.

A broad grounding in a particular industry is a prerequisite to successful direction setting.

Visionaries can draw a conceptual roadmap to some imagined future.

The most important thing that I have learned is that the time for a business to go from chump to champ to chump used to be two to three decades and now it is five to seven years.

Bill McGowanFormer CEO of MCI

VisionStrategyTactics

Business Plan

• Competitive Options• Roles, Roles and Relationships• Redefine and/or Define• Telecommunications

as the Delivery Vehicle• Success Factor Profile

A Systematic Approach

A Shared Vision Positions IT

1. Achieve Strategic Synergy.

2. Put the Onus on the Owners.

3. Leverage Learning.

4. Extend Externally.

5. Chuck the Organization Chart.

6. Indulge in Information.

7. Make a Bee-line for Benefits.

““The Vision Trap”The Vision Trap”11

Grand, abstract visions can be too inspirational. The company may wind up making more poetry than products.

Gerard H. Langeler

President, Mentor Graphics

Sensing Opportunity

Vision

Strategy

Tactics and Business Plan

Agreement &Commitment

Implementation(Action)

Feedback

The Vision to ActionProcess

Figure 6-1

Vision ExamplesVision Examples

• Robert McDermott at USAA

• David Whitwam at Whirlpool

• Peter Lewis at Progressive Corp.

• Gil Amelio at National Semiconductor

If Starting TodayIf Starting Today

Robert McDermott, USAA Jack Welch, General Electric

David Whitwam, Whirlpool Jeff Bezos, Amazon.com

Peter Lewis, Progressive Corp. Charles Schwab, Schwab & Co.

Michael Dell, Dell Computer Sam Walton, Wal-Mart Stores

Fred Smith, Federal Express Meg Whitman, eBay

Louis Gertsner, IBM Akio Morita, Sony

Lee Kuan Yew, Singapore, Inc.

USAAUSAA• Financial Services Company.

• Headquartered in San Antonio, Texas.

• A member owned association.

• Started by Army officers who had difficulty getting insurance.

• Historically managed by former military officers.

• Top-rated for customer service and financial performance.

Information systems are strategic weapons, not cost centers.

Robert F. McDermott, Former USAA CEO

McDermott Leadership

• Increased assets from $207 million to $8.5 billion. • Grew customer base from 650,000 to 2.4 million.

• Significantly increased the level of customer service.

• Broadened the product base.

• Decreased the high annual employee turnover rate.

• Redefined the business from a property and casualty insurance company to a financial services organization.

USAA VideotapeUSAA Videotape

USAA Vision 2000An Events Oriented Organization

Needs WantsMember (Customer)

Key Points Security Quality Asset of Life Management

Supporting Insurance Consumer FinancialSystems Products Services Services Products Products

Figure 6-2

USAA’s ultimate goal is to manage its customer relationships and not its individual products.

How does this relate to information systems?

USAA Products and ServicesUSAA Products and Services

So integrated that members lose

something if they go elsewhere.

1. Customer Convenient

2. Operator Efficient

3. Cost Effective

USAA Business and IS GoalsUSAA Business and IS Goals

Information Systems StrategiesInformation Systems Strategies

• Executive Partnership

• Strategic Architectures

• Technology Experimentation

• External Resource Leverage

• Technology Assimilation

• Horizontal Integration

IT at USAAIT at USAA

• 28,000 workstations for 22,709 employees.• 7 mainframe computers.• 750 client server systems.• Own and operate a communications company.• 4,300 AT&T Trunk Lines: 94 million annual

telephone calls representing 90% of business transactions.

• 1,300 Information Systems people. (ITCo)

12/31/99

USAA Image Processing

Direct AccessStorage Drive

Document DatabaseDirect AccessStorage Drive

Token Ring LAN

StorageManager

FolderManagementApplication

A

P

I

A

P

I

InnerServer

API

On-line Optical Disks

Service RepresentativesM

ailr

oom

ScannerImage Workstation

Application Workstation

Image Workstation

ApplicationWorkstation

Optical StorageLibrary

(Not On-line)

][

Mainframe Computer

Figure 6-3

1. Provides quality service.2. Attracts, trains, retains and motivates employees.3. Aggressively and successfully uses information technology.4. Provides products and services to address the changing needs of its customers.5. Maintains one of the lowest operating expense ratios in the industry.6. Achieves financial results that warrant excellent to superior ratings.7. Makes business, organizational and management changes on a timely basis.8. Had an outstanding CEO in General McDermott.

USAA Success ConclusionsUSAA Success Conclusions

• Traditionally, a successful, well-managed company.• A new CEO in 1987 who initiated a global vision in 1988.• A global strategy that emphasized:

- Product Technology- Procurement

• Promoted a theme of “Thinking global but acting local.” • Manufactures in 13 countries, has nearly 50 product technology centers and markets products under 13 brands in 170 countries. • Has the patience to allow the global strategy to evolve.• Is the only company with a presence in four of the five global markets.• Has realized impressive growth in revenue but not profits.• Is becoming a new Whirlpool.

Whirlpool CorporationWhirlpool Corporation

Financial PerformanceFinancial Performance

1991 - $6.5 billion in global sales

2001 - $10.3 billion in global sales.

1991 - $353 million in operating profit

2001 - $306 million in operating profit

.0297% .078%

2002 was a better year.

Whirlpool Corporation

Principal ProductsAutomatic Dryers

Automatic Washers

Dehumidifiers

Dishwashers

Freezers

Microwave Ovens

Ranges

Refrigerators

Trash Compactors

Room Air Conditioners

2001 Whirlpool Global Sales

0% 10% 20% 30% 40%

Refrigerators and freezers

Laundry appliances

Cooking appliances

Other

Who Buys Large Appliances?Who Buys Large Appliances?

1. Contractors for new homes.

2. Home owners for replacements.

3. Appliance service businesses.

4. Businesses and public sector entities.

5. First time appliance buyers.

Appliance BrandsAppliance BrandsWhirlpool

Kitchen AidRoperWhirlpool

Kenmore*

* Manufactured for Sears

Maytag

AdmiralHardwickHooverJenn-AirMagic ChefMaytagNorge

GE

GERCAHot Point

Electrolux

FrigidaireGibsonElnaEurekaKelvinatorO’Keefe and MerrittTappanWhite- Westinghouse

Differentiation Strategy!?Differentiation Strategy!?

• Clothes Management System

• Food Management System

• Home Management System

• Garage Management Systems

Whirlpool Strategic Design

• Mission Statement

• Vision

• Value Creating Objectives

• Shared Values

• Worldwide Excellence System

Whirlpool CorporationWhirlpool CorporationHow We Must Work, Think, Plan and Manage to Reach Our ObjectivesHow We Must Work, Think, Plan and Manage to Reach Our Objectives

Whirlpool People

Leadership

Quality of Processes and Products

Fact-Based Management

Strategic Planning

Measurement and Results

Customer Satisfaction Figure 6-4

1. Stick to its large appliance knitting within the North American market and fight for increased market share with the hope that economic factors would improve its market conditions.2. Diversify within the North American market.3. Pursue a global strategy as a conservative player in multiple global markets.4. Pursue an aggressive global strategy with the objective of leading the redefining of the world- wide large appliance industry.

Four Whirlpool OptionsFour Whirlpool Options

Whirlpool Mission StatementWhirlpool Mission Statement

To shape and lead the major home appliance industry globally, becoming one of the world’s great companies while creating value for shareholders, employees, customers, suppliers, government leaders and communities.

WhirlpoolWhirlpool Vision Vision

Whirlpool, in its chosen lines of business, will grow with new opportunities and be the leader in an ever-changing global market. We will be driven by our commitment to continuous quality improvement and to exceeding all of our customers’ expectations. We will gain competitive advantage through this, and by building on our existing strengths and developing new competencies. We will be market driven, efficient and profitable. Our success will make Whirlpool a company that worldwide customers, employees and other stakeholders can depend on.

Pyramid of ExcellenceStakeholder Value

Measurement

& Results

Customer

Satisfaction

Strategic

PlanningFact-Based

Management

Customer Satisfaction

People

Commitment

Values

Vision

WorldwideExcellence

System

Value CreatingObjectives

WhirlpoolPeople Quality Process

& Products

Leadership

Growth & Innovation

TotalQuality

Where

Way

What

How

Whirlpool CorporationWhirlpool Corporation

The market of tomorrow will be huge, filled with tough savvy customers with a wide range of preferences and choices. We must fulfill their needs and meet their expectations in quality and service. We must surprise them.

David R. WhitwamWhirlpool CEO

1. Product Technology.

2. Procurement.

3. Information Systems

Platform for Global SuccessPlatform for Global Success

GE Versus WhirlpoolGE Versus Whirlpool

Has tried for years to dislodge Whirlpool as No. 1 in the US.

GE spent $100 million to develop a new washer.

Plastic washer basket versus traditional porcelain.

Lost a major battle to win Sears’ washer business.

Gained two percentage points in market share in 2000. (2% is $400 million in a $20 billion market.)

Offered significant purchase rebates.

Operating profits were 12% (low for GE).

President of GE: “Being in this business is painful.”

Worldwide Major Appliance Industry

United States Whirlpool General Electric Maytag

Sweden Electrolux

Figure 6-5

Japan Matshushita Electric Hitachi

Korea Samsung

Morita and SonyMorita and SonySony was born in 1946 when Morita, the oldest son of a rice wine brewer, joined former Japanese navy colleague Masaru Ibuka, a fellow engineer, to start a business repairing radios on a borrowed $500. A significant number of firsts: - Japan’s first transistors in 1954.

- Japan’s first transistor radio in 1955. - First Japanese company to be listed on the NYSE.

- First Japanese company to build a U.S. factory. Morita told engineers to make Walkmans despite the lack of market research. “We don’t believe in market research for a new product unknown to the public. So we never do any.”

Approach emphasis: innovation in design, manufacturing and marketing.

Lee Kuan Yew and Singapore Inc.Lee Kuan Yew and Singapore Inc.

Although no nation's history can ever be reduced to the story of one man, Lee Kuan Yew had such a paramount role in making modem Singapore that an understanding of that country, its society and its business environment cannot be complete without an attempt at understanding Lee himself.

NewspapersNewspapers

Newspapers serve our democratic society by vigilantly protecting the people’s right to know. Newspapers are the leaders in providing news, editorial comment, information and advertising.

Newspaper Association of America

Newspapers will remain vital and Newspapers will remain vital and sustain their vigilance by:sustain their vigilance by:

1. Investing energy and resources to strengthen their value to readers and advertisers.

2. Continuing to be the most comprehensive source of gathering, organizing and presenting news and information.

3. Pioneering businesses that anticipate and meet the changing needs and desires of consumers and marketers.

4. Attracting, retaining and advancing a talented, creative and diverse workforce.

US Advertising Spending

0% 10% 20% 30% 40% 50%

Radio

Broadcast TV

Cable TV

Direct Mail

Others

Internet

Newspapers1960

1970

1980

1990

2000

2001

US Advertising Expenditures

$0 $50 $100 $150 $200 $250 $300

1960

1970

1980

1990

2000

2001

Billions of $

A Good Vision StatementA Good Vision Statement

• Provides a clear picture of what the company wants to be in the future.

• Excites and motivates people and gains consensus and commitment.

• Focuses on operations.

• Is measurable at least in general terms.

• Establishes a standard of excellence.

• Changes the basis for competition.

Increasingly, companies are usingvision statements to explain who theyare, where they are going and whycustomers and employees should follow them there.

Business VisionBusiness Vision

A Good Vision Statement?A Good Vision Statement?

To continue to be the world’s best way to pay and be paid for consumers and businesses.

Visa International

Good Vision Statement?Good Vision Statement?

Absolutely, positively overnight!

Federal Express

Good Vision Statement?Good Vision Statement?

Sun Microsystems

To make the maximum computing power available to a broad user audience through open technologies.

Sun Vision StatementSun Vision Statement

To be an industry leader, you need vision.

But that’s just the beginning.

You also need the people, products, and relationships to take your vision to market and turn it into a compelling reality.

Good Vision Statement?Good Vision Statement?

To provide the best service and lowest fares to the short haul, frequent-flying, point-to-point, non-interlining traveler.

Southwest Airlines

When you have a vision and someone comes to you with some convoluted idea, you should be able to hold it up to the vision and ask: Does it fit? Does it fly? If not, don’t bother with it.

The ingredient that catapulted Southwest to the top of the industry is simple, elegant and well publicized.

Discipline, focus and execution.

Throughout its existence, Southwest has consistently adhered to a clearly defined purpose and a well thought out strategy for accomplishing it.

Good Vision Statement?Good Vision Statement?

Do it, try it, fix it!

Wal-Mart Stores

Wal-Mart VisionWal-Mart Vision

“I concentrated all along on building the finest retailing company that we possibly could. Period.”

“Creating a huge personal fortune was never a goal of mine.”

Sam Walton

Wal-Mart VisionWal-Mart Vision

Walton built incrementally, step by step from a single store until a rural discount store model popped out as a natural evolutionary step.

If you are not serving the customer or supporting

the folks that do then we don’t need you.

Wal-Mart Core ValuesWal-Mart Core Values

1. We exist to provide value to our customers—to make their lives better via lower prices and greater selection; all else is secondary.

2. Swim upstream, buck conventional wisdom.

3. Be in partnership with employees.

4. Work with passion, commitment and enthusiasm.

5. Run lean.

6. Pursue ever-higher goals.

Built to Last ConclusionsBuilt to Last Conclusions

1. A visionary company does not by definition start with a

great idea.

2. A charismatic leader is not required for a visionary company.

3. There are no standard core values to be a visionary company.

4. A visionary company is not built on frequent change but a

focus over time on its core ideology.

Built to Last ConclusionsBuilt to Last Conclusions

5. Visionary companies may appear conservative to outsiders but they are not afraid to make bold commitments and/or establish ambitious goals.

6. Only those people who fit well with the core ideology and the demanding standards of a visionary company will find it a great place to work.

7. Visionary companies make some of their best moves by experimentation, trail and error, opportunism and accidentally.

8. Great visionary companies seldom go outside to hire a new CEO.

Built to Last ConclusionsBuilt to Last Conclusions

9. Visionary companies focus primarily on beating themselves.

10. Visionary companies believe they can accomplish major objectives simultaneously without making major negative trade-offs.

11. Visionary companies attained their successful status not so much because they made visionary pronouncements (although they frequently did) but by pursuing a never-ending process of emphasizing the above factors.

Soft Visionaries?Soft Visionaries?

Visionary does not mean soft and undisciplined.

Because the visionary companies have such clarity about who they are, what they are about and what they are trying to achieve, they tend to not have much room for people unwilling or unsuited to their demanding standards.

A Logical Vision ProcessA Logical Vision Process

• Define the Business Environment.

• Build a Company Vision.

• Turn the Vision into a Plan.

• Drive Action with the Plan.

Vision

Applications

Tools

Networks

Tactical

Strategic

Expense

Asset

SaveMoney

Invest

By instilling:

Leadership

Vision

Strategy

Tactical Excellence

Innovation

A Great Company

You create:

Improved Performance

Market Impact

Sustained Success

Excellent Reputation

Which results in:

Leadership SignificanceLeadership Significance

Take a measure of the people at the top of a business and you will get a clearer sense of that company’s past accomplishments and future prospects than from its balance sheet, profitability, cash flow, market share and market capitalization.

People matter most and accounting cannot quantify their value.

The drama of a business lies in the people who make things happen.

Successful Business LeaderSuccessful Business Leader

Andris Istvan Grof

Andy GroveAndy GroveWalked out of Communist Hungary when he was 20 years old in 1956 and arrived in the US in 1965 with no money and no English capability.

Worries about fighting complacency and emphasizes measuring failure.

An intellectual and a visionary who says he doesn’t know the next big thing that will happen in his industry who has achieved phenomenal success but is always afraid.

Earned a degree in Chemical Engineering from NYU and a PhD from Cal, Berkeley in 1963.

“As a manager, fear is your ally because it gets you out of your comfort zone.”

Andy GroveAndy Grove“Don’t eliminate the fear of what is going to happen if you don’t move.”

A good manager will train people to deal with fear by example, by discussion, by cognitive processes.

It was very difficult to decide to get out of the memory business because we had created the business in the first place. This meant reducing the company in terms of people by one third and closing eight facilities (also 1/3).

These kind of decisions are easier if you can take an outsider’s perspective of the situation. When in doubt, talk to customers who are unhappy with what you are doing.

Andy GroveAndy Grove

Current concerns: Intel has become a very big business. It is a world wide business with a phenomenal track record. It grew very rapidly and transformed.

A lot of hard work went into reinventing the PC the right way—finding new uses and finding them any where in the world.

Maintaining the engine of reinvention, of new customers and new uses and keeping that engine going is a major concern.

Andy GroveAndy Grove

Intel’s success is based on three foundations:

1) Product Design

2) Technology and Manufacturing

3) Marketing and Sales

All three must be equally strong.

A Vision that WorksA Vision that Works

• It gains commitment and energizes employees.

• It creates meaning in employees lives.

• It helps to establish a standard of excellence.

• It bridges the past and the future.

• It assures future business success.

1. There is little hard evidence that companies with vision statements perform better than those without.

2. At the current rate of change in the business environment, companies need a clear, consistent sense of where they are going.

Which attitude would you support on this subject?

VisionVision