The Vision Trap
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The Vision Trap By: A V Raghu Vamshi 08IT- 001 Aseem Sidhu 08IT-009 G Lakshmanan 08IT-012 Praveen Sebastian 08IT-021 Puneet Kukreja A Case in Strategic Drift
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A Case in Strategic Drift. The Vision Trap. By: A V Raghu Vamshi 08IT-001 Aseem Sidhu 08IT-009 G Lakshmanan 08IT-012 Praveen Sebastian 08IT-021 Puneet Kukreja 08IT-022 Rishabh Garg 08IT-025. Company : Timeline. Company : Timeline (Contd.). - PowerPoint PPT Presentation
Transcript of The Vision Trap
The Vision Trap
By:A V Raghu Vamshi 08IT-001Aseem Sidhu 08IT-009G Lakshmanan 08IT-012Praveen Sebastian 08IT-021Puneet Kukreja 08IT-022Rishabh Garg 08IT-025
A Case in Strategic Drift
Company : Timeline
Company : Timeline (Contd.)
Company : Timeline (Contd.)
Articulating a vision based on current short term objective
– (Beat Daisy)
Articulating a vision based on current short term objective
– (Beat Daisy)Mistake-1
Consequence
The Company paid heavily in terms of deteriorating
product quality, decreasing stock value and employee
burnout, aimlessness
The Company paid heavily in terms of deteriorating
product quality, decreasing stock value and employee
burnout, aimlessness
Management did not comprehend clearly, the definition of ‘Vision’
Letting the followers define the terms of Leadership
Letting the followers define the terms of LeadershipMistake-2
Consequence
Management did not comprehend clearly, the definition of ‘Vision’
A more grandiose vision partly based on customer
comments
A more grandiose vision partly based on customer
comments
Getting locked into the inappropriately defined vision
of ‘Leadership in Six Boxes’
Getting locked into the inappropriately defined vision
of ‘Leadership in Six Boxes’Mistake-3
Consequence
Management did not comprehend clearly, the definition of ‘Vision’
The company competed in non-core competence areas
and lost heavily
The company competed in non-core competence areas
and lost heavily
10x imperative – an even more abstract vision
10x imperative – an even more abstract visionMistake-4
Consequence
Management did not comprehend clearly, the definition of ‘Vision’
Loss of focus on improving internal processes. Focusing on customers did not yield
any results
Loss of focus on improving internal processes. Focusing on customers did not yield
any results
Changing the Way the World Designs. Together.
Changing the Way the World Designs. Together. Mistake-5
Consequence
Management did not comprehend clearly, the definition of ‘Vision’
Schedule slippage because of unending stream of problems
got 8.0 delayed.
Schedule slippage because of unending stream of problems
got 8.0 delayed.
The management should have..
What went right for the company was that of..
The attitude of “Believe in Yourself”
The acquisition of a Californian company
The Return to Basics – Getting the vision right this time
GM’s loss to Toyota
- A Modern example of ‘Strategic Drift’
"GM’s vision is to be the world leader in transportation products and related services. We
will earn our customers’ enthusiasm through continuous improvement driven by the integrity,
teamwork, and innovationof GM people."
Toyota becomes the World Leader..
• 24th April 2007 – Toyota ditches GM to take the No. 1 spot
• Main Drivers of Growth– Lean Production System– Pioneering Petrol / Electricity hybrid car – Prius– Camry, the most popular car in the US
Why GM lost out?
Focused on Gas Guzzling SUV’s – Strategy was fine as long as gas was cheap
Was late to enter the Hybrid car market – GM’s Volt still not released in the market
Labor Issues – Rising Labor cost
Thank You..!
