Jenette Nagy and Stephen B. Fawcett of the University of Kansas suggest in a document prepared for the school’s online Community Toolbox that the difference between organizations that “know exactly what they’re doing, are consistent in their aims and activities, and move forward with a sense of purpose” and those that “seem to flounder, not quite sure how to move ahead or how to accomplish their goals, very often…slipping quietly away” is, in many cases, that the latter lack a clear vision and mission.
Statements of mission and vision are essential parts of a successful strategic plan. They help to attract, engage, and retain talent; build and strengthen organizational culture through a unified sense of purpose; improve decision-making with clarity about the “big picture”; enhance cross-functional relationships through a shared understanding of priorities; and increase productivity by leveraging all resources. In fact, a 2001 study in the journal Management Decision indicated that organizations that have clearly defined vision and mission statements that are aligned with a strategic plan outperform those that do not.
In order to ensure a successful future, an organization must be able to define both its reason for existing (mission) and where it is heading (vision), so that its people, processes, and products or services are aligned. Vision and mission statements help clarify and communicate organizational purpose, putting the focus on what is really important in the face of day-to-day challenges. Vision and mission statements also give those outside of the organization a quick and easy view of what the organization is about.
Many companies, however, struggle with creating meaningful mission and vision statements, perhaps lacking a true understanding of what each addresses.
Vision
A vision statement is a short phrase that clearly, concisely, and memorably captures the company’s long-term “dream.” It is usually created by senior management, with the goal of guiding thinking beyond day-to-day activity, presenting high-level goals for the business. Vision statements are easy to communicate so that they can be kept top-of-mind. They identify what the organization ideally wants to become and serve to inspire and challenge employees, keeping them moving forward and engendering feelings of excitement and pride. The vision statement comes back to what the company’s founder envisioned for the business when it was created, and stretches the company’s feelings about its capabilities. Some examples of vision statements:
- “Our vision is a world without Alzheimer’s disease.” (Alzheimer’s Association)
- “To be the company that best understands and satisfies the product, service, and self-fulfillment needs of women globally.” (Avon)
- “To be the safest, most customer-focused and successful transportation company in the world.” (Norfolk Southern)
Mission
Mission statements, on the other hand, are more concrete and action-oriented than vision statements; they frame the action the company must take to achieve the “dream” of the vision. The mission statement describes what business the organization is in and provides a focus, purpose, and direction for management and staff, as well as customers, vendors, and other stakeholders. It encompasses three areas: what the organization is going to do (the needs that are fulfilled by the company), for whom (identifying the target demographic and geography), and how (technically, how the product is delivered). It is outcome-oriented, speaking to a shorter timeframe than the vision. Generally one or two sentences, the mission unifies work efforts and increases the professionalism of the company, as well as increasing employee engagement, retention, and productivity, and helping employees better understand company-wide decisions, organizational changes, and resource allocation. Some examples of mission statements:
- “To develop safe and healthy neighborhoods through collaborative planning, community action, policy advocacy, and enforcement.” (Vernonia Prevention Coalition)
- “Nissan provides unique and innovative automotive products and services that deliver superior, measurable values to all stakeholders in alliance with Renault.” (Nissan)
- “Our mission is to make Target the preferred shopping destination in all channels by delivering outstanding value, continuous innovation, and exceptional experiences – consistently fulfilling our ‘Expect More. Pay Less.®’ brand promise.” (Target)
Values
A third part of the equation is the values statement. This describes the desired culture, serving as a behavioral or moral compass that establishes a standard against which actions can be assessed. A values statement describes what the organization believes in and how it will behave, defining the deeply-held beliefs and principles of the organizational culture and placing boundaries on how employees conduct themselves while carrying out the vision and mission. The values should be reflected in everything the organization does, guiding attitudes, actions, and decision-making on a daily basis. Some examples of organizational values:
- “Leadership – the courage to shape a better future; Collaboration – leverage collective genius; Integrity – be real; Accountability – if it is to be, it’s up to me; Passion – committed in heart and mind; Diversity – as inclusive as our brands; Quality – what we do, we do well.” (Coca-Cola Company)
- “Respect – We believe that all people should be treated with consideration and dignity. We cherish diversity; Caring – We are committed to serving with empathy and compassion; Teamwork – We are committed to effective partnerships between volunteers and staff, and we seek opportunities to form alliances with others; Integrity – We are committed to act in an ethical, honest manner.” (Iowa Young Birders)
- “Collegiality – We develop and maintain positive relationships through understanding, collaboration, and trust; Integrity – We strive to do the right thing for the greater good for all our clients; Initiative – We develop new strategies and continually assess the appropriateness of the services we provide; Excellence – We establish goals and objectives to achieve excellence and are accountable for our actions and the impact they have on the community; Civility – We are frank, open, sincere, and respectful of others; Stewardship – We responsibly manage and protect the resources entrusted to our care.” (Cornell University Procurement Services)
After creating these statements, the next step is to determine how to use them; after all, the goal is to get their messages across. This can entail a good deal of creativity – the statements can be added to letterhead or stationery, used on the company website, printed on t-shirts or other small gifts, verbally presented during interviews, added to the company’s press kit, printed on the cover of publications – there is no limit to the placement of these purposeful, meaningful statements.
Vision, mission, and values statements are guides for business, not meant to be constraining. As a result, as the company grows and changes, there may be a need to also change the statements. Companies should revisit their statements at least once a year to ensure that they are still relevant to the work they are doing.
It is also important to ensure that there is consensus among the people who will carry out the contents of the statements (i.e. staff and volunteers). Without this, the organization may well not be able to fulfill its purpose. The vision, mission, and values statements should be embedded in the culture of the organization through clear and consistent communications.
In The Seven Habits of Highly Effective People, Stephen Covey wrote, “Coherence suggests that there is harmony, unity, and integrity between your vision and mission, your roles and goals, your priorities and plans, and your desires and discipline.” Well-crafted mission, vision, and values statements will serve their companies well as a North Star to guide all of these components of a successful operation.
