Vision Statement Quality and Organizational Performance in U.S. Hospitals

Abstract

INTRODUCTIONThe statement (or vision) commonly provides a concept of an organization's destination, It also helps leaders create and communicate an effective road map for the organization (Kaplan, 1996; Swanye, Duncan, & Ginter, 2012). Kantabutra (2008) described as a mental model or conceptual representation of an organization's future. Various definitions of exist; however, they all portray a future picture of the organization and stress the need for goals and strategies to be directed toward achievement of this envisioned future (Zuckerman, 2000).Bennis and Nanus (1985) reported that the lack of a clear is a major cause of declining effectiveness in many organizations. Multiple theorists have discussed the importance of organizational and its relationship to business performance; they propose that must be action oriented and innovative and take into consideration the organization's and values (Beckhard & Pritchard, 1992; Collins & Porras, 1996; Daft & Weick, 1984; Isenberg, 1987; Kouzes & Posner, 1987; Maccoby, 1981; Westley M Slater, 1993; Timmons, Smollen, & Dingee, 1990).According to Baum, Locke, and Kirkpatrick (1998), is an essential facet of strategic change, and organizations that create a future picture describe their as a proactive reaction to the changing needs of the environment. Despite vision's importance in organizational alignment and performance improvement, a limited number of empirical studies have actually examined the relationship between a statement and organizational performance. Several authors (Bart, Bontis, & Taggar, 2001; Ban & Hupfer, 2004; Bart & Tabone, 1999) conducted studies of statements and their impact on organizational performance in the Canadian healthcare environment. However, to our knowledge, no empirical literature exists pertaining to organizational performance and statements in Ll.S. hospitals.The purpose of this research is to examine the quality of statements in U.S. acute care hospitals and to assess their impact, if any, on organizational performance measures related to finance and growth.BACKGROUNDVision and Mission StatementsAlthough strategic management distinguishes between vision and mission statements, many companies use the terms interchangeably (Sufi & Lyons, 2003). A statement describes a desirable future state and long-term organizational goals. A statement serves as a backdrop for the company's purpose and strategy; moreover, statements influence key priorities because they are formed on the basis of the organization's core values and beliefs (Collins & Porras, 1991; Falsey, 1989; Ireland & Hitt, 1992; Williams, 2008). According to Sufi and Lyons (2003), statements include broad elements such as purpose, strategy, values, and behavioral standards. Organizational purpose, together with values, determines the philosophy or core ideology of an organization, which can be defined as a rich system of values and beliefs shared by its members that distinguish it from other organizations (Collins & Poiras, 1996; Mintzberg & Quinn, 1996).Collins and Porras (1996) proposed that statements must reflect the organization's core ideology and envisioned future. They created a framework for successful creation. Collins and Porras (1996) define the envisioned future as Big, Hairy, Audacious Goals (BHAGs) created by senior leaders that direct the organization's efforts. They state that helps the organization preserve its core purpose and values while focusing on a progressive future.Vision and Organizational PerformanceTo measure performance, healthcare organizations use administrative, financial, process, and clinical outcome measures. The critical question facing healthcare leaders is how to prioritize these measures in today's highly competitive healthcare environment (Erwin, 2009; Langabeer, 2008; Sicotte et ah, 1998). …