Vision statements can help a business with the image issue to some extent; more importantly, it can add substance to the image. The mission statement translates the vision into actionable business goals and objectives.
What are Vision and Mission Statements?
There are numerous definitions for vision and mission statements. As somebody remarked, if you bring ten business consultants together and ask them to define vision and mission, you are likely to get ten different definitions.
A generally accepted definition that seems to be emerging now is that vision is a statement of value and values. Businesses succeed by providing a value that the community wants. Values come into the picture when the business decides how it will deliver this value. For example, will it provide some real value that benefits the community, or will it use manipulative advertising to make money by providing an unreal value?
The choice a business makes in formulating its vision will be strongly influenced by the world view and personal values of the leader. Vision is thus closely related to values, while also being a business statement indicating the value it will provide in exchange for money.
While the vision statement is community oriented with a focus on the value the business provides to the community and the ethics involved, the mission statement is more specific. It is more business oriented than community oriented.
To succeed, businesses need not only to provide a value ethically but also do it in a way that will make money. In a complex environment of competitive business scenarios and imperfect markets, businesses need to develop a unique selling proposition (USP) based on their core competencies, and then communicate this USP to prospective customers.
Additionally, success requires actionable goals. Goal setting involves identifying measures and setting targets to aim for.
The mission statement will articulate the USP and the targets, in a way that is aligned to the vision of the organization.
The vision and mission statements need to be expressed in terms that inspire the organization and its people. In fact, the vision statement can go beyond the organization and help the business communicate with its community about the value it is seeking to provide. A credible vision statement can help the business attract talented employees, investors and customers, all critical for its success.
Developing Mission and Vision Statements
Though theoretically the vision statement comes first and the mission statement next, in practice this order is best reversed. A business starts with specifics such as the product or service it will provide, the unique features it will offer to compete in the market and the targets it needs to achieve. These are all stuff for the mission statement.
Only after developing some clear ideas about these practical issues can the business identify meaningfully the specific value that it is providing to the community. At this stage, the business can also examine how it can incorporate values with the potential to inspire the whole organization to its vision. The primary objective of the vision statement is to inspire all stakeholders.
Mission statements are typically developed by identifying the strengths and competencies that are available to the organization. This is a serious exercise that is done through such exercises as a SWOT analysis or USP analysis. Just sitting down and making up a "mission statement" that sounds grand is simply a waste of time.
The findings of the SWOT analysis or other USP development exercise are then supplemented with measurable targets necessary to achieve the organization's goals and objectives. Finally, the USP and targets are articulated in clear and concise language to create the mission statement.
Once the mission statement is finalized, the exercise of finding the human and social dimensions involved starts. What value does the product or service provide to the community? What aspect will be highly appreciated by customers? How can the organization provide a vision to its employees that will inspire them? How can it show the public that it really cares for the welfare of all?
The above questions must be answered in specific terms that relate to the business and its USP. General statements that seem far-fetched (though profound) are not going to provide meaningful inspiration to anybody.
The exercise should result in a vision statement that is inspiring, meaningful for the business and credible to the reader. Language in which it is expressed is as important as the substance. Even great substance, if expressed in insipid or platitudinous language, can fail to convey the intended message.
Vision and mission statements, if developed right, can help businesses succeed through clear and actionable goal setting and generating enthusiasm among people who work in or deal with the organization.
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