The VMOST Analysis is a tool that allows a business to evaluate its core strategies in terms of whether the supporting activities of that strategy are being carried out. The VMOST analysis tries to answer that by looking at five core elements: vision, mission, objectives, strategies, and tactics.
- Understanding the VMOST analysis
- Advantages and disadvantages of the VMOST Analysis
- VMOST analysis examples
- Key takeaways:
- Other strategy frameworks
Understanding the VMOST analysis
In most cases, VMOST analyses are performed so that a business can define current and future strategies, organizational units, projects, and programs. Employees – as a part of the business or as individuals – can also be assessed using this technique.
Here is a look at each of the five elements that give the VMOST analysis its name.
Vision encompasses ideas that summarize where a business sees itself in the future. Where will it operate? Which target audience will it serve? How will it position itself against the competition? What does the business want to be known for?
The answers to these questions should inspire and challenge the business do to better without being completely unattainable.
Mission is the series of steps that guide a business to carrying out its vision. To change old and outdated ways of operating, missions must be adopted from senior management down to the entry-level employee.
Objectives define whether a mission has been accomplished, usually quantified in the form of key performance indicators (KPIs). To maximize the chances of meeting certain objectives, businesses can adopt the SMART goal attainment strategy.
In other words, is the objective:
As objectives guide missions, so too do strategies guide objectives. If the goal of a taxi company was to increase revenue by $10 million annually, a potential strategy may include expanding the service into five new cities by the end of the year.
Tactics encompass the specific, low-level actions that are taken for strategies to be fulfilled. If we return to the example of the taxi company, possible tactics for expanding into five new cities might include:
- Identifying competition in the form of ride-sharing across the proposed cities.
- Identifying areas in smaller cities where there are gaps in taxi coverage.
- Acquiring a fleet of new vehicles at a cost-effective price.
Advantages and disadvantages of the VMOST Analysis
- Given the somewhat hierarchical nature of the VMOST structure, the analysis is easily understood by various employees and stakeholders.
- The VMOST analysis provides clarity, agreement and focuses on the future direction of the company. This discourages the formation of weak and vague strategies which encourage disharmony and malaise within a company.
- A well-constructed VMOST analysis does not guarantee employee buy-in. Strategies that are created by upper management with little employee involvement may be met with inertia when presented to the whole company. Input must be sought by multiple levels of the organization to counter this.
- Some organizations start with a mission or vision that is simply unachievable. Despite perfectly sound objectives and strategies, they will find that they lack the necessary resources to achieve their goals.
VMOST analysis examples
In this section, we will work through a VMOST analysis using The Coca-Cola Company as an example.
The mission of The Coca-Cola Company is described on its website as follows: “Our vision is to craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better shared future that makes a difference in people’s lives, communities and our planet.”
In recent years, The Coca-Cola Company dropped its mission statement in favor of the vision statement seen above. However, elements of the original mission statement which read “To refresh the world, To inspire moments of happiness, To create value and make a difference” have been retained.
While not exactly equivalent to a mission statement, the company also notes the following purpose statement: “Refresh the world. Make a difference.”
According to the investor relations section of its website, the company has five key objectives to navigate the pandemic and drive a subsequent growth trajectory:
- Win more customers.
- Gain market share.
- Strong system economics.
- Strengthen stakeholder impact.
- Equip the organization to win.
Coca-Cola has various strategies that are described in the context of its vision statement. We have included a few of them from each area of focus below:
- Powerful partnerships with its bottling system to bring brands to life.
- Excellence in product ingredients, design, marketing, and innovation.
- Maintain a focus on both local and global actions.
- Improve water security where it is needed most.
- Reduce the carbon footprint of the company.
- Contribute to a circular economy with a focus on recycling all waste.
- Support local communities, particularly when it is most needed.
- Build an inclusive society characterized by equal opportunities.
- Invest in the personal growth and unique talents of employees.
Tactics in The Coca-Cola Company help it create a culture with a passion to make a difference and refresh the world. The company defines tactics in terms of these behaviors:
- Mindset – an expansive, creative, and growth-oriented mindset that believes in continuous learning and values the way work is performed.
- Curious – this means never becoming too comfortable and consistently searching for new possibilities or horizons.
- Empowered – employees must be accountable for their actions and believe that they can make a difference to the success of the company.
- Inclusive – it is also important Coca-Cola leverages its broad employee diversity and global network to facilitate success. What’s more, the company believes that most of the time, two brains are better than one.
- Agile – the best way to learn is by doing and there is nothing wrong with iterating until something is perfected. Agility also means acting with a sense of urgency.
- The VMOST analysis is a strategic planning tool that helps businesses focus on activities that are aligned with their core visions.
- The VMOST analysis is comprised of five separate elements that together, deconstruct how a business can align its words with actions.
- The VMOST analysis is a simple and effective framework that all key stakeholders can understand. But it is nevertheless vulnerable to a lack of employee buy-in.
Other strategy frameworks
- Porter’s Five Forces
- Ansoff Matrix
- Blitzscaling Canvas
- Business Analysis Framework
- Gap Analysis
- Business Model Canvas
- Lean Startup Canvas
- Digital Marketing Circle
- Blue Ocean Strategy