AF ELS Combined Pre-reads

Putting It All Together: Sony in the 1950s

Core Ideology

Envisioned Future

Core Values Elevation of the Japanese culture and national status Being a pioneer – not following others; doing the impossible Encouraging individual ability and creativity Purpose To experience the sheer joy of innovation and the application of technology for the benefit and pleasure of the general public

achieved one BHAG and fails to replace it with an- other. NASA suffered from that syndrome after the successful moon landings. After you’ve landed on the moon, what do you do for an encore? Ford suf- fered from the syndrome when, after it succeeded in democratizing the automobile, it failed to set a new goal of equal significance and gave General Motors the opportunity to jump ahead in the 1930s. Apple Computer suffered from the syndrome after achiev- ing the goal of creating a computer that nontechies could use. Start-up companies frequently suffer from the We’ve Arrived Syndrome after going pub- lic or after reaching a stage in which survival no longer seems in question. An envisioned future helps an organization only as long as it hasn’t yet been achieved. In our work with companies, we fre- quently hear executives say, “It’s just not as excit- Vivid Description We will create products that become pervasive around the world.…We will be the first Japanese company to go into the U.S. market and distribute directly.…We will succeed with innovations that U.S. companies have failed at – such as the transistor radio.… Fifty years from now, our brand name will be as well known as any in the world…and will signify innovation and quality that rival the most innovative companies anywhere.… “Made in Japan” will mean something fine, not something shoddy. BHAG Become the company most known for changing the worldwide poor-quality image of Japanese products

panies in our research frequently did not achieve their BHAGs, if they set them at all. The differ- ence does not lie in setting easier goals: the vision- ary companies tended to have even more audacious ambitions. The difference does not lie in charis- matic, visionary leadership: the visionary com- panies often achieved their BHAGs without such larger-than-life leaders at the helm. Nor does the difference lie in better strategy: the visionary com- panies often realized their goals more by an or- ganic process of “let’s try a lot of stuff and keep what works” than by well-laid strategic plans. Rather, their success lies in building the strength of their organization as their primary way of creating the future. Why did Merck become the preeminent drug- maker in the world? Because Merck’s architects

built the best pharmaceutical re- search and development organiza- tion in the world. Why did Boeing become the dominant commercial aircraft company in the world? Be- cause of its superb engineering and marketing organization, which had the ability to make projects like the 747 a reality. When asked to name the most important decisions that have contributed to the growth and

The basic dynamic of visionary companies is to preserve the core and stimulate progress. It is vision that provides the context.

success of Hewlett-Packard, David Packard an- swered entirely in terms of decisions to build the strength of the organization and its people. Finally, in thinking about the envisioned future, beware of the We’ve Arrived Syndrome – a compla- cent lethargy that arises once an organization has

ing around here as it used to be; we seem to have lost our momentum.” Usually, that kind of remark signals that the organization has climbed one mountain and not yet picked a new one to climb. Many executives thrash about with mission statements and vision statements. Unfortunately,

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HARVARD BUSINESS REVIEW September-October 1996

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