VMOST Analysis is a strategic planning framework that was
first proposed by Rakesh Sondhi in 1999 and has been gaining popularity since
then. The VMOST analysis is compromised by 5 elements and it is used to assess
the organization’s strategy and strategic planning. VMOST is an acronym for its
5 elements; Vision, Mission, Objectives, Strategy and Tactics.
1. Vision: Where do you want your
organization to be in the future?
Vision is the set of
ideas that summarizes where the organization sees itself in the future. It’s
all about visual descriptions that include how the company will look like, what
products and services it will offer, what locations it will serve, and how it
will be positioned against competition. Although a company’s vision should be
ambitious and aspiring, it should not yet be unrealistic.
2. Mission: How are you going to
achieve the Vision you have set out?
While Vision is where
the company is wants to be in the future, Mission is the action-oriented blocks
of change that will help the organization reach its Vision. Strategic planning
that contains specific and feasible action plans is critical at this stage.
3. Objectives: What are the particular
goals or your organization?
Once the Mission is in
place, Objectives are particular check points that monitor the progress towards
specific goals. This is often achieved through monitoring Key Performance Indicators
(KPIs), such as Gross Profit Margin, Inventory Turnover, Operational Cash Flow
and Net Sales. The objectives should follow the SMART criteria which stand for
Specific, Measurable, Achievable, Relevant and Time-Bound.
4. Strategy: What are the actions that
need to be taken to achieve your objectives?
The next element of
the framework is Strategy, which is the focus area we want to explore in order
to achieve our objectives. Each strategy should link to at least one mission
objective. The main goal of the strategy is to provide a starting plan and
ideas on how they may be achieved.
5. Tactics: What are the individual tasks
that make up your strategy?
Tactics are the actual
actions taken in order for strategies to be fulfilled. There might be a number
of tactics for each strategy and they are best expressed in the format of
Verb-Noun (i.e. Run TV ad, Create Social Media accounts, etc).
What are some of the benefits
of the VMOST analysis?
- Breaks down an overall
strategy into five different elements and further looks into each element in
isolation. - Helps stakeholders
understand the business bottom-up. - Provides a high level
of understanding of the required changes and how these fit into the bigger
organizational picture. - Links the long-term
destination (Vision) with the particular changes (Tactics) - Ensures that all
actions taken are purposefully bringing the organization one step closer to its
organization direction (Vision) - Helps stakeholders
establish actions that are specific, measureable, achievable, relevant and
time-bound. - Provides visibility of
all change happening within the organization, whether its planned or unplanned.