Page 44 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

30 The Complete Guide to Executive Compensation

(looking ahead 5 to 10 years) can be anything more than an interesting exercise resulting in
a beautiful book that will have little resemblance to what actually unfolds.
That does not mean companies should sit back, watch things happen, and hope to make
the right decisions. Companies must engage in strategic thinking, always looking to the direc-
tion and rate of change. In doing so, a company must decide if it wishes to be a pacesetter or
one that capitalizes on established changes. The first probably emphasizes product innova-
tion. The second looks to operational effectiveness and customer identification. The steps in
the process are shown in Figure 1-9 and illustrated as a function of time in Figure 1-10.

Vision

Mission

Core Competencies

Objectives

Goals

Threats/Opportunities

Issues

Strategies

Figure 1-9. Strategic thinking process

The Vision

Although sometimes belittled, many are successful because they start with a dream. It is anal-
ogous to the child who determines what he or she wants to be when he or she grows up. This
is the vision or description of the desired future of the organization. Perhaps the company’s
vision is “to thrive on exceeding our customer communication needs.” To the extent this
comes after pertinent input, it enhances the probability of relevance. Saying at the age of seven
that you want to be a doctor—unaware of the requirements—is a lot different than if a few
years later, after having talked with a doctor, you still want to become such a professional.
Some believe the vision should be attainable if the company is successful in its mission.
Others believe the vision should be inspiring but unattainable. Clearly, the late President
Kennedy had an inspiring (and difficult but attainable) vision when he saw an American
walking on the moon before 1970. And the late Martin Luther King, Jr., articulated his