Corporate Vision - Back to the Basics

Back in 1996, Collins & Porras wrote the book on corporate vision.  I read it back then, and go back to it every couple of years.  Each time, I discover that some lesson I learnt (painfully) over the last few years had already been described in their paper.  It deserves the moniker seminal, and I strongly urge you to go read it.
In their worldview (and in mine!), corporate vision has two components - a core ideology, and an envisioned future. To use their own words,

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. In fact, the most lasting and significant contribution of those who build visionary companies is the core ideology...  

Visionary companies use BHAGs as a powerful way to stimulate progress. All companies have goals. But there is a difference between merely having a goal and becoming committed to a huge, daunting challenge—such as climbing Mount Everest. 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

Core ideology serves to inspire, not differentiate.  It is most certainly not the same as core competence, which actually defines the capabilities of the company, not its reason for being!  This ideology has two parts, core values (a handful of guiding principles by which the company navigates), and core purpose (the fundamental raison d'etre for the company).  Taking these one at a time

• Core values:  These transcend product/market life cycles, tech breakthroughs and management fads.  The key is not what core values an organization has, as much as the fact that the organization has core values in the first place!  These values have everything to do with who you are, as compared to where you are going, since the latter will almost certain change over time (while the former will not, and should not!).  In fact, if market conditions end up conflicting with core values, it is better to change markets than to change these values - almost a truism as changing core values essentially negates the essence of the organization.
• Core Purpose: These reflect people's idealistic motivations for doing the organization's work, the very reason for being of the company.  And once again, it should not be confused with product lines, market segmentation etc.  A good way to look at this is to use the 5 Whys method, i.e., keep asking Why till you get to the core purpose.  The core purpose needs to be idealistic, e.g., Disney's "Make people happy", not materialistic as statements like Maximize shareholder wealth really don't resonate with most employees.

Envisioned Future, on the other hand, is the direction that the company is (currently) moving in.  It consists of two parts, a BHAG (Big Hairy Audacious Goal), and a Vivid Description of this goal, in passionate - even emotional - terms.  The BHAG needs to be a long-term one, i.e., at least 10 - 30 years out in the future.  This ensures that the short-term detours that all companies take do not detract from the unity of purpose within the organization. Think of it as the General saying "Sergeant - take that hill!".  The fact that getting to the hill involves detouring around a lake does not negate the core objective - "Taking that hill".  BHAGs are invariably paired with vivid descriptions, i.e., an emotionally resonant and engaging portrayal of the BHAG that can be carried in  employee's heads.

So, ask yourself

1. What are your company's core values?  They should be few in number - if there are more than five, you are fooling yourself
2. What is your company's core purpose?  If you believe you know it, ask yourself, Why is this my core purpose.  When you hit bedrock, you have arrived
3. What is your company's Big Hairy Audacious Goal?  Can you achieve it next year?  If so, you are fooling yourself
4. What is the vivid description for your BHAG?  Does it resonate emotionally?  If so, you've got it.

Oh, one tricky bit, do not confuse core ideology with envisioned future!  You will eventually get to the future, but your core purpose can never be completed!