Vision and Mission Statements - Simply Put!

Introduction

In the Marstan Guide "Introduction to Business Management", we said that strategy and business planning go together. We also explained that vision statements, mission statements and strategic objectives are the three fundamental components of a business strategy. (See also “Strategy and Business Planning – Simply Put!”)

What is the purpose of vision statements and mission statements?

The main purpose of a vision statement and a mission statement is to keep an organisation focussed on what it wants to achieve and how it aims to conduct itself.

This is necessary, because it is easier to lose focus than most people think. When businesses are founded they are often idealistic and brimming with goodwill. The founders want to deliver a first class service to their customers and have enormous gratitude to them.

After a few years, when things are more hectic, the organisation is buffeted by events and more people join the organisation, it is easy for this well intentioned start to be diluted. People can no longer see the “big picture” or understand the values on which the organisation was founded.

The purpose of vision statements and mission statements is to constantly remind people why they are doing their job and to inspire them to do it to the best of their ability.

What is the difference between a vision statement and a mission statement?

A vision statement describes an outcome which the organisation would like to see. It is something outside of the organisation and it is “bigger” than the organisation.

A mission statement describes the part which the organisation will play in delivering the vision.

We can illustrate this by imagining what Dr Martin Luther King may have written if he was working in current times. His vision statement would be serviced from his “I had a dream” speech; one of the most clever and inspiring pieces of oratory ever delivered. His mission statement would be based on his courageous actions, which he took over a long period of time in the Civil Rights movement.

Martin Luther King’s vision, might have read:

A society where people are treated equally and are not judged by the colour of their skin.

His personal mission statement might read:

To use my legal and writing skills to bring attention to racial inequality and bring about a change in the law.

Many organisations fail to understand the difference between a vision statement and a mission statement. There are too many who have a Vision which says something like:

“To be the largest manufacturer of XY in the world”

The problem with this type of statement is that it is not based on values and is not, in itself, likely to inspire people whether they are customers or employees.

The 5 key factors in creating an effective vision statement

In order to be effective, a vision statement should be:

1. A worthwhile aim
2. Expressed simply
3. Clear and easy to visualise
4. Related to something external to the organisation
5. Inclusive of values

The 4 key factors in creating an effective mission statement

In order to be effective, a mission statement should:

1. Demonstrate what part the organisation should play in delivering the vision
2. Be concise and descriptive
3. Be achievable
4. Be inspiring

How to use vision and mission statements

The purpose of vision and mission statements is to set the context of the outcome which is desired (vision) and the part which the organisation will play in delivering that vision (mission).

Vision and mission statements should be used in three ways:

1. To deal with internal communications.

   The statements set the context for people in the business by saying “Here is a worthwhile aim and the part which our organisation will play in achieving it”.

2. To deal with external communications.

   The statement shows customers and other stakeholders what the organisation stands for and an outline of the services or goods which it supplies.

3. To use as the basis for planning strategic objectives.

   When the vision and mission statements are complete, it is time to plan to take action to ensure that it is delivered. (See “Strategy and Business Planning – Simply Put!” and “Strategic Objectives – Simply Put!”)