Vision and Mission Analysis of Icici Bank and Jpmorgan Chase & Co.

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STRATEGIC MANAGEMENT

ASSIGNMENT ON

Vision and Mission Analysis of

ICICI Bank and JPMorgan Chase & Co.

What is Vision and Mission?

• A Mission Statement is a declaration of an organization’s “reason for being”. It defines the company’s business, its objectives and its approach to reach those objectives.

• A Vision Statement describes the desired future position of the company. Vision provides guidance about what core to preserve and what future to stimulate progress towards.

How is a vision formulated?

A well-conceived vision consists of two major components:

1. Core ideology
2. Envisioned future

Core Ideology

Core ideology defines the enduring character of an organization—a consistent identity that transcends product or market life cycles, technological breakthroughs, management fads, and individual leaders. Core Ideology consists of two parts:

• Core values: A system of guiding principles and tenets. The point is that a great company decides for itself what values it holds to be core, largely independent of the current environment or competitive requirements. Companies tend to have only a few core values, usually between three and five. In order to identify the core values, relentless honesty is required in order to define the values which are truly central. A company should not change its core values in response to market changes; rather, it should change markets, if necessary, to remain true to its core values.

• Core purpose: The organization’s most fundamental reason for existence. An effective purpose reflects people’s idealistic motivations for doing the company’s work.  It doesn’t just describe the organization’s output or target customers; it captures the soul of the organization.  A purpose is not meant to be fulfilled, it only guides the company to inspire change and move forward. One powerful method for getting at purpose is the five whys. The reason for existence is questioned till the core purpose emerges.

Discovering Core Ideology

The organization can’t create or set core ideology, they discover it. Core ideology needs to be meaningful and inspirational only to people inside the organization. A clear and well-articulated ideology attracts to the company people whose personal values are compatible with the company’s core values.  A company can have a very strong core ideology without a formal statement. A core ideology doesn’t reflect a company’s operating practices, business strategies, cultural norms or core competencies. It captures the essence of the organizational core values and purpose.

Envisioned Future

It consists of two parts:

• A 10-to-30-year audacious goal (Big, Hairy, Audacious Goals)

A true BHAG is clear and compelling, serves as a unifying focal point of effort, and acts as a catalyst for team spirit. It has a clear finish line, so the organization can know when it has achieved the goal; people like to shoot for finish lines. A BHAG should not be a sure bet—it will have perhaps only a 50% to 70% probability of success—but the organization must believe that it can reach the goal anyway.

• Vivid descriptions of what it will be like to achieve the goal.

It is, a vibrant, engaging, and specific description of what it will be like to achieve the BHAG. Picture painting is essential for making the 10-to-30- year BHAG tangible in people’s minds.

Vision Analysis

Industry Chosen: Banking

Targeted Indian Bank: ICICI Bank

Targeted International Bank: JPMorgan Chase & Co.

ICICI Bank

ICICI Bank Original Vision Statement

To be the leading provider of financial services in India and a major global bank.

ICICI Bank Vision Statement Analysis

• The company’s core values which are guiding principles are not stated in existing vision statement.
• The company’s core purpose, which is the reason of its existence, is not reflected in the vision statement. From the company’s profile we found out that ICICI Group, seek to partner the country's growth and globalization through the delivery of world-class financial services across all cross-sections of society.

ICICI Bank Improved Vision Statement

To provide world-class financial services to aid India’s development and be a major global commercial bank to earn the loyalty of customers and the community by operating with integrity and fairness at all times.

Analysis of the Improved Statement

• The modified vision statement states integrity, fairness and community service as its core values.
• The purpose of ICICI bank is reflected in the improved statement. It aspires to serve the community by providing world-class financial services.
• The envisioned future for the bank is to become a leader in commercial banking in India and achieve a major bank worldwide.

JPMorgan Chase & Co.

JP Morgan Chase & Co. Original Vision Statement

To become the best and most respected bank in the world

JP Morgan Chase & Co. Vision Statement Analysis

• The company’s core values which are guiding principles are not stated in existing vision statement.
• The company’s core purpose, which is the reason of its existence, is not reflected in the vision statement. From the company’s profile we found out that JP Morgan Chase & Co., promise to be truthful and give honest assessments of their businesses and prospects; act with integrity and honour; and do the right thing, not necessarily the easy or expedient thing. They want to make a company of which their customers, employees, shareholders and communities can be proud.

JP Morgan Chase & Co. Improved Vision Statement

To become the best and most respected bank in the world by providing trustworthy and honest services. To build the company with integrity and honour and serve the community.

Analysis of the Improved Statement

• The modified vision statement states integrity, honesty and trustworthiness as its core values.
• The purpose of JP Morgan Chase & Co. is reflected in the improved statement. It aspires to serve its customers with integrity and honour its commitments.
• The envisioned future for the bank is to become the best and most respected bank in the world.

Mission Analysis

How is a mission formulated?

An effective mission statement should include nine crucial components:

• Customers
• Products or Services
• Markets
• Technology
• Concern for survival, growth, and profitability
• Philosophy
• Self-concept
• Concern for public image
• Concern for employees

ICICI Bank

ICICI Bank Original Mission Statement

We will leverage our people, technology, speed and financial capital to:

• Be the banker of first choice for our customers by delivering high quality, world-class products and services.
• Expand the frontiers of our business globally.
• Play a proactive role in the full realisation of India's potential.
• Maintain a healthy financial profile and diversify our earnings across businesses and geographies.
• Maintain high standards of governance and ethics.
• Contribute positively to the various countries and markets in which we operate.
• Create value for our stakeholders.

ICICI Bank Mission Statement Analysis

The existing mission statement misses out on the following components:

• Technology - It does not mention any improvements or use
• Self-Concept - It does not touch upon its core competence
• Concern for employees – No mention of the importance of employees

ICICI Bank Improved Mission Statement

In addition to existing mission statement, we will add the following components:

• Update the company on the technological fronts in order to ensure better customers service
• Focus on innovative products to enable 24*7 banking services to its clients
• High regards to employee well-being and development in order to leverage their full potential

Analysis of the Improved Statement

• We have used technological advancement as a parameter to serve the customers in a better way
• We have focussed on innovation as core competence of the company
• We have laid emphasis on recognition of employees and focus on their learning and development.  

JPMorgan Chase & Co.

J.P Morgan Chase & Co. Original Mission Statement

We will leverage our people, technology, speed and financial capital to:

• Exceptional client service
• Operational Excellence
• Commitment to integrity, fairness and responsibility
• Great team and winning culture

J.P Morgan Chase & Co. Mission Statement Analysis

The existing mission statement misses out on the following components:

• Products and services: what are the firm’s major products or services
• Markets: It does not mention where the firm will compete geographically
• Concern for public image: Firm responsiveness to social, environmental concerns

J.P Morgan Chase & Co. Improved Mission Statement

In addition to existing mission statement, we will add the following components: