This essay is concerned with an evaluation of the mission and vision statements of the ING Bank. What does the "best bank" do and are mission and/or vision statements related to the strategy and success?
"The World's Best Banks: ING And Citibank Lead The Way", is the title of an article published in the Forbes magazine in March 2019. The author cites ING`s Head of global retail banking, Ignacio Juliá Vilar, with the following: “The mission of ING is for our customers to stay a step ahead in life and business,” Since she read this article the author knew that she wanted to find out more about ING´s mission and how it is related to the success of the bank.
Therefore, this assignment will start with the general introduction and the definition of mission and visions statement. To make this topic more explicit we will investigate the mission and the vision statements of ING Bank more closely. The interpretation in 3.2 Evaluation of ING´s mission and vision statements of the mission and vision statement are done freely without any insight information, only public available sources were used here. It follows that interpretation can differ from ING´s actual interpretation. Next to that a summary of the current banking environment will be given to complete the challenges and opportunities for the bank. To bring mission and vision statement together with strategy the Balances Scorecard developed by Robert S. Kaplan and David P. Norton will be introduced. It will be used as a tool to translate mission and vision into goals and actions. Next to that the Balances Scorecard extends the financial perspective with the customer, the internal business processes and the learning and growth perspective to measure and manage the tangible and intangible assets of the bank.
Table of Contents
1. Introduction
2. Mission and vision statements
2.1 Mission statement
2.2 Vision statement
3. Practical example: ING Bank
3.1 Disruptive change in the banking environment
3.2 Evaluation of ING´s mission and vision statements
3.2.1 Interpretation of the mission statement
3.2.2 Interpretation of the vision statement
3.3 Using the Balanced Scorecard and the translation of mission, vision and strategy
4. Conclusion
Objectives and Topics
The primary objective of this assignment is to investigate the strategic relevance of mission and vision statements within an organizational context, using the ING Bank as a practical case study. The work explores how these statements function as strategic tools and examines their influence on corporate success in a rapidly changing environment.
- Theoretical definitions of mission and vision statements
- Challenges within the modern banking sector
- Evaluation of ING Bank's strategic communication
- The role of the Balanced Scorecard in operationalizing strategy
- The link between clear corporate purpose and financial performance
Excerpt from the book
3.2.1 Interpretation of the mission statement
ING´s mission statements is: “To be the preferred bank of our customers through operational excellence and international service quality; and of our employees with the highest level of ethical and moral values.”28 What does it say about the ING as company? Without knowing the ING Bank the reader knows that the ING is a bank. A bank which wants to be the preferred bank of the customers. This indicated that the company puts high value to the customer experience, customer service and the products the bank offers. The word "preferred” indicates the aim of the bank to be better than its competitors. The bank wants to be the first choice of the customer without stating this directly in the vision statement. The vision statement also describes how the bank wants to achieve this vision and that’s through “operational excellence”. Operational excellence means in general that processes are optimized to be effective and efficient at any time. This statement certainly makes a good impression on the stakeholder. Another part of the vision statement is “international service quality”. The ING Group is an internationally operating company with a high recognition value. Therefore, it seems important for the bank to make the stakeholders clear that the company acts accordingly to one vision without differentiating between the country’s they are operating in. It also indicates that the ING Bank puts a high value on the customer service and the customer satisfaction in all countries. The second part of the vision statement addresses the employees and future employees of ING. “To be the preferred bank … of our employees with the highest level of ethical and moral values.” 29 This part implies that ING Bank actively addresses ethical and moral issues. Probably attaches great importance to diversity. It also gives the impression that ING Bank values its employees by actively addressing them in the vision statement. ING Bank wants to be the “preferred” employer or employer of choice, for its employees and potential employees.
Summary of Chapters
1. Introduction: This chapter introduces the motivation behind the research and outlines the structure of the assignment regarding the analysis of mission and vision statements.
2. Mission and vision statements: Provides a theoretical framework for defining and understanding the strategic importance of mission and vision statements in corporate management.
3. Practical example: ING Bank: Examines the specific case of ING Bank, covering current market challenges and an in-depth evaluation of its strategic communication and use of the Balanced Scorecard.
4. Conclusion: Synthesizes the findings, confirming the vital relationship between clear corporate purpose, effective communication, and long-term organizational success.
Keywords
Mission statement, Vision statement, ING Bank, Strategic pyramid, Balanced Scorecard, Banking environment, Corporate purpose, Digital transformation, Performance measurement, Intangible assets, Strategy implementation, Stakeholder management, Organizational growth, Competitive advantage, Operational excellence.
Frequently Asked Questions
What is the fundamental focus of this research paper?
The paper examines how organizations utilize mission and vision statements to define their strategic direction and how these statements correlate with organizational success.
What are the primary themes discussed in the work?
Key themes include the definition of strategic tools, the impact of disruptive changes in the banking sector, and the methodology of translating abstract vision into concrete performance metrics.
What is the central research question?
The core inquiry is whether mission and vision statements are tangibly related to an organization's strategy and its eventual success.
Which scientific methods are employed in this analysis?
The author uses a qualitative approach, combining literature review with a case study analysis of the ING Bank, and applies the Balanced Scorecard framework for strategic evaluation.
What aspects are covered in the main section of the paper?
The main section covers the theoretical foundations of vision and mission, a detailed environmental analysis of the banking industry, and a practical application of the Balanced Scorecard to ING Bank.
Which keywords best characterize this work?
Key terms include Mission Statement, Vision Statement, Balanced Scorecard, Strategic Pyramid, and Corporate Purpose.
How does the author define the "purpose" in the context of ING Bank?
The author identifies ING's purpose as "Empowering people to stay a step ahead in life and in business," which serves as an inspirational anchor for employees beyond mere financial goals.
Why is the Balanced Scorecard considered essential in this paper?
It is presented as a vital tool to bridge the gap between high-level vision and daily operational activities, ensuring that intangible assets like employee innovation and customer relationships are managed effectively.
- Arbeit zitieren
- Samantha Kim Schönhaber (Autor:in), 2020, Mission and Vision Statements in an Organization. The Case of the ING Bank, München, GRIN Verlag, https://www.grin.com/document/932705
