Vision Change Analysis
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Vision
A vision statement gives the current status of the organization, and points to the direction of where the organization would like to go. A vision statement is not about what the company currently is, but what the company hopes to become.
Mentor Graphics based in Wilsonville, Oregon provides software and services for building advanced electronic products. The software enables engineers to design and build systems and cabling for electronic products in the consumer electronics, computer, telecommunications, automotive and aerospace industries.
The strategic change initiative in the Mentor Graphics case study is the company is trying to find a vision statement that fits where the company is trying to go. In this case study Gerard Langeler, president of Mentor Graphics Corporation is trying to realign the companys vision statement.
In this case study, Mentor Graphics started with an unarticulated vision to “Build Something That People Will Buy.” Their competitor, Daisy Systems had the same vision and they outcompeted Mentor Graphics. Daisy Systems became the new vision driven by the need to survive as a business.
After being in business for 5 years their revenues grew greater than Daisys Systems and finally their vision had be realized. In spite of the recession, the company continued to grow but suffered growth problems, and the staff wanted a new vision for the company.
The strategic change initiative that the Mentor Graphics used was the company was headed in a new direction after the company had growth problem, decline in product quality and problems of internal company coordination, and the stock value also suffered, they decided that it was time to change their vision statement to reflect where the company was headed.
The company decided to develop a new vision that was based on “Six Boxes”. The “Six Box” Model represents a particular way of looking at organizational structure and design. Attention is given to issues such as planning, incentives, and rewards, the role of support functions such as personnel, internal competition among organizational units, standards for remuneration, partnerships, hierarchies and the delegation of authority, organizational control, accountability and performance assessments (The Marvin Weisbord Six-Box Model).
Mentor Graphics sought six boxes for market leadership, but one of the businesses was not paying dividends. This company instituted one of the “Six Boxes”, but they could not shut down because then they would be left with a “Five Boxes” vision. This would disrupt the ability to make sound financial decisions.
Ive learned through this case study and from information in Managing Organizational Change chapter 9 that vision is something that is essential to producing successful organizational change (Palmer, Dunford, &