The Vision and Mission are foundational statements about why an organization exists. When given proper emphasis, they can act as a north star, guiding the company through whatever happens in the future. Although they are often grouped together, a company’s Vision and Mission are distinct statements.
Vision
A company’s Vision is a picture of the future, an image of where the company is heading. A Vision is aspirational in that it serves to pull the organization forward towards an image of what could be. When properly crafted, a Vision provides energy and unity for the organization.
Because a Vision should reflect the unique personality of the company, there is no template or script that it must follow. As a general guideline, the Vision should be concise and compelling, connecting with both the heart and the head.
Mission
A mission is a statement of a company’s purpose. A strong mission includes three fundamental components: what the company does, the value the company delivers, and the customers the company serves.
The Importance of Vision and Mission
Vision and Mission are two separate terms that are often confused or used interchangeably but having both is key to a successful business strategy. If a company has only a Vision, which describes an ideal future state, the details as to how to accomplish that Vision are left to interpretation. The result is a lack of clarity, conflicts in decision-making, and an organization that can feel lost or scattered.
On the other hand, if a company has only a Mission, which describes the company’s purpose, the goal or future of the organization is lost. This leads to confusion, a lack of direction, and an organization that feels stuck or uninspired.
Together, the Vision and Mission statements provide an organization with a purpose and a path. By establishing points of alignment for all other activity in the organization, they also create greater unity and cohesion within the team.
There are three key reasons that Vision and Mission are important:
They intentionally design a future for the organization. When learning to ride a bike, new riders must look ahead to where they want to go. Looking straight down or to the side causes them to lose balance. In a similar way, a purposefully crafted Vision provides a point of focus that helps the organization keep its balance and guides the company over the long-term. Without this structure to keep eyes forward-looking, the organization is left looking straight down at the challenges of the day or to the side at distractions. This leads to drifting, imbalance, and eventually a loss of momentum.
They create guide rails for the organization to follow. The Vision and Mission statements serve to guide the organization, keeping it on a set path. For every decision that arises—whether it’s selecting employees, designing operations, or developing new products—the organization with a strong Vision and Mission is going to have clarity about where it wants to go. The founders of the business may decide to change paths over time, but it will be a conscious choice and not an accident.
They build a sense of unity and buy-in throughout the organization. As team members connect to something bigger than themselves, they are instilled with a sense of pride and comradery. When people feel a sense of belonging, they are more loyal and committed.
When an organization has a strong Vision and Mission, it has clarity about its identity and purpose. Both components are important because together they provide a balance of where a company wants to go and how it gets there.
Vision and Mission are part of the Business Model element, one of the 11 elements of an exceptional business. You can get a copy of the Business Model book, available on Amazon, to learn more about the other factors that combine to make a business more resilient and more profitable.