Building Your Companys Vision From Harvard Business Reviewarticle Building Your Companys Vision James C. Collins and Jerry I. orras !eptem"er#$cto"er %&&'Building Your Companys Vision The companies that enjoy enduring success have core values and a core purpose that remain fxed, while their business strategies and practices endlessly adapt to a changing world. Examples include Hewlett-Pacard, !", #ohnson $ #ohnson, Proctor $ %amble, "erc, &ony, "otorola, and 'ordstrom. Truly great companies understand the di(erence between what should never change and what should be open to change, between what is genuinely sacred and what is not. This rare ability to manage continuity and change is closely lined to the ability to develop a vision. )Building Your Companys Vision * well-conceived vision consists o+ two major components, core ideology and envisioned future. The core ideology is unchanging while the envisioned +uture is what we aspire to become, to achieve, to create.!()e core ideology* core valuesThe core ideology consists o+ the core values and core purpose.Core values are the essential and enduring tenants o+ an organi-ation, a small set o+ timeless guiding principles that re.uire no external justifcation./()e core ideology* core valuesTo identi+y the core values o+ your own organi-ation, push with relentless honesty to defne what values are truly central. 0+ you articulate more than fve or six, chances are you are con+using core values 1which do not change2 with operating practice, business strategies, or cultural norms 1which should be open to change2. 3pon evaluation, i+ circumstances changed and penali-ed us +or holding a core value, would we still eep it4 0+ we can5t honestly answer yes, then the value is not core and should be dropped +rom consideration. 6()e core ideology* core values7()e core ideology* core purpose The core purpose is the organi-ation5s reason for beingnot to be con+used with a goal or strategy. 0t is the idealistic motivation +or doing the company5s wor. 1This can only be reached by asing 8why9.2 :()e core ideology* core purpose;ore ideology needs to be meaning+ul and inspirational only to people inside the organi-ation< it need not be exciting to others.0t is the people within the corporation who need to commit to the organi-ational ideology over the long term. ;ore ideology can also play a role in determining who is inside the organi-ation and who is not. =ou cannot impose new core values or purposes on people()e core ideology* core purpose?()e core ideology* core purposeCore competencies should be well-aligned with a company5s core ideology and are o+ten rooted it in< but they are not the same thing. ;ore competence is a strategic concept that defnes your organi-ation5s capabilities @ what you are particularly good at @ whereas core ideology captures what you stand for and why you exist.AB()e envisioned +uture* BH,-The envisioned +uture consists o+ two parts, a AB to !B year audacious goal plus vivid descriptions o+ what it will be lie to achieve the goal. * company must have a CH*% 1pronounced Cee-hag2, a 8big, hairy audacious goal9 * clear and compelling uni+ying +ocal point o+ e(ort and a catalyst +or team spirit.AA()e envisioned +uture* BH,-0t has a fnish line, so organi-ation can now when it has achieved the goal. * CH*% should not be a sure bet,it will have perhaps only a 6BD to :BD probability o+ success,but the organi-ation must believe that it can reach the goal anyway.A)()e envisioned +uture* BH,-A!()e envisioned +uture* Vivid descriptionEivid descriptions are vibrant, engaging and specifc descriptions o+ what it will be lie to achieve the CH*%. Thin o+ it as translating the vision +rom words to pictures.A/Building Your Companys Vision A6Building Your Companys Vision * direct lin to the +undamental dynamic o+ visionary companies, preserve the core and stimulate progress. Cuilding a visionary organi-ation is AD vision and ??D alignment.A7