Vision and Mission Statements of Saudi Electric Company

Saudi Electricity Company is an electric utility company in Saudi Arabia. The company is monopoly player in the industry with 45 plants of power generation in KSA that provide transmission, distribution and generation of electric power to the country. The company is founded by Council of Ministers in 2000. It’s a product of merging between different electric companies that were regional in Western, Eastern and Southern areas. 81 percent of the company is owned by the government and the remaining by Saudi Aramco. SEC is expected to increase its power generation volume to 91 GW from 60 GW in 2020 and to meet needs double of the existing capacity will be maintained. Let’s talk about the vision and mission of Saudi Electricity Company.

Vision Statement of Vision and Mission Statements of Saudi Electric Company

‘We serve our customers and country by delivering world class power service.’

Vision statement is the future aspiration that a company wants to achieve, its goals. Now according to the performance management there should be four characteristics for a vision statement to be effective. Firstly, the vision statement should be focused, it should have listed some of the organization’s performance aspects or elements that are significant to be successful in the future. The vision statement of SEC does not have the focused characteristic. The statement is only talking about the power service Saudi Electricity Company gives to the customers and the country.

It does not mention anywhere what are its some of the organizations aspects or elements that it will need in other to be successful, also, there are no goals mentioned. The second characteristic is that the vision statement should be understandable, it should be written in a very straightforward and clear manner so that it is easily understood by all the employees. It is very important the employees understand what the vision statement is about as it defines the future goal for the company. And employees are the one who will have to work hard in order to achieve those goal. The Saudi Electricity Company’s vision statement has this characteristic of being understandable, it is a clear one liner without any obsolete meaning.

The employees can easily understand that the company aims on providing or serving the country and the customers by the power service of electricity. The third characteristic is inspiring, which means that the vision statement should make the employees feel excited about their organization’s goals and direction. And the directions should motivate the employees to work hard in order to achieve the goal and aims stated in the vision statement.  

In my opinion, the vision statement of Saudi Electricity Company does not have this characteristic of inspiring. Now because the first characteristic of vision statement being focused is missing, the third characteristic is also affected. If the vision statement does not have the aligned goals for the employees to work now how will they be inspired the visible ones. In an organization when the vision statement states what the company expects to achieve in the future, it is easier for the employees to memorize that statement, and work accordingly keeping in mind that the company has to achieve.

 The last characteristic is stretch, when attaining the goal is not easy. It is true that achieving organizational goal is not an easy thing to do, a vision statement should state the level of difficulty. The Saudi Electricity Company’s vision statement sounds very simple and easy going although it is not that easy to attain goals. The Saudi Electricity Company needs to add a few aspects of organization’s performance in order for these characteristics to be fulfilled (SE.com).

Mission Statement of Vision and Mission Statements of Saudi Electric Company

‘We power the kingdom that energizes the world.’

Mission statement is a written text that summarizes the organization’s most significant reason for why it exists.  There are a few characteristics that need to be followed by an organization to make a perfect mission statement. If a mission statement as all three of these characteristics it will very easy for the organization to also actually follow them. The first characteristic talks about what the basic product or service is that the company is offering. Now if we look at the mission statement of the Saudi Electricity Company, it talks about the power it is providing. In short, it is stating that they offer electricity.

Another characteristic that is important and needs to be stated in the mission statement is the target audience, the customer groups that are being targeted. This is the primary group to whom the company is offering is product or service. The mission statement of Saudi Electricity Company mentions that it powers the kingdom, which means the kingdom of Saudi Arabia. The mission statement also leads to information about the technology that is being used by the company for its production and innovation. But in Saudi Electricity company’s mission statement there is no reference to the technology.

They should add an element of how technology helps to achieve its sustainability. The mission statement also does not address the fundamental concern for the survival. The SEC needs to come up with a mission statement that talks about sustainability by profitability and growth. One more characteristic that a mission statement should have is being brief. Saudi Electricity Company has this characteristic as it’s a one line sentence which is easy to remember for the employees. According to the performance management, mission statement portrays a public image that is sought by the company. I think the mission statement of Saud Electricity Company does give the public image to the audience about what the company is, electricity driver. Managerial philosophy which are the guideline that are being followed by the firm. It should also be addressed to the customers so they know what they’re investing in. Performance management also talks about the verifiability of the organization.

Which means that it is able to stand firm to the reality test or not. The mission statement can tell us whether a company has verifiability or not. The Saudi Electricity company does have verifiability. The simple statement shows how the company uses its services to energize the world, it displays integrity. Missing statement helps in developing a self-concept for the organization that is adopted by all the stockholder and the employees. The mission statement of Saudi Electricity Company, however, lacks this characteristic to some extent. It does tell the employees of self-concept by stating about the service, what the organization is built on and what customers does it cater. Mission statement also consists of the timeline by which it is bounded. The timeline helps in specifying how much time period is required by the company to fulfill various aspirations. In order to be successful, Saudi Electricity Company needs to fill in these gaps where they exit. It needs to define all the characteristics of the performance management clearly to develop a perfect mission statement. (Aguinis)

The vision and mission statement of Saudi Electricity Company link individual, team and organization performance to different aspects. The vision statement is more linked to organization performance as it states how the organization serves the country and the customers with its service. In my opinion it is more inclined towards team performance than individual. The mission statement nowhere states the individuality but when it talks about serving the customers it uses the pronoun, ‘we’ which refers more to team than individual. This mission statement is also linked to organizational performance, it positions what the organization is capable of. The mission statement of Saudi Electricity Company talks about how as a whole the firm powers the kingdom; this shows team performance as well. There is no link of mission statement to the individual performance.

Conclusion of Vision and Mission Statements of Saudi Electric Company

To conclude, there are many loopholes that exit in the mission and vision statement of the Saudi Electricity Company. For example, the vision statement of SEC does not have the focused characteristic. The statement is only talking about the power service Saudi Electricity Company gives to the customers and the country. It does not mention anywhere what are its some of the organizations aspects or elements that it will need in other to be successful, also, there are no goals mentioned. The mission statement also leads to information about the technology that is being used by the company for its production and innovation.

But in Saudi Electricity company’s mission statement there is no reference to the technology. All these loopholes need to be filled by the Saudi Electricity Company in order to attain future goal by keeping their employees motivated and hard working. If the vision statement does not have the aligned goals for the employees to work now how will they be inspired the visible ones. In an organization when the vision statement states what the company expects to achieve in the future, it is easier for the employees to memorize that statement, and work accordingly keeping in mind that the company has to achieve. We can’t say that either one of the statements is more important, both are of equal significance and need to be fully defined for the firm to be successful.

 References of Vision and Mission Statements of Saudi Electric Company

Aguinis, Herman. Performance Management . Sally Yagan, New Jersey.

SE.com. Saudi Electricity Company. 2019. <https://www.se.com.sa/en-us/Pages/OurVisionAndMissionAndValues.aspx%20or%20choose%20an%20organization%20in%20KSA>.