Develop the Business Compass
Importance of Vision and Mission Statements
Company vision and mission statements play a pivotal role in shaping the identity, direction, and success of a business.
A vision statement is a concise representation of the company’s long-term aspirations and goals, painting a vivid picture of the future it aims to achieve. It serves as an inspirational beacon, motivating employees and stakeholders while providing a clear sense of purpose. When employees understand the overarching vision, they are more likely to work cohesively towards a shared objective, fostering a sense of unity and commitment within the organization.
On the other hand, a mission statement defines the company’s fundamental reason for existence, articulating its core values, objectives, and the value it brings to its customers and society. It acts as a compass, guiding decision-making, strategy, and daily operations. Having a well-crafted mission statement ensures that the company remains true to its values and principles, creating trust and alignment with both internal and external stakeholders.
In combination, vision and mission statements provide a strategic framework that not only steers a company toward its desired future but also helps it stay grounded in its core purpose, enabling sustainable growth, employee engagement, and a strong, positive reputation.
How to Create Vision and Mission Statements
There’s really no fixed way to develop one. The process is more to discover and explore the existence of the business and its values.
This activity involves all the stakeholders of the business, such as the owner/founder, the employee, the customers and perhaps the vendor. By saying that doesn’t mean you have the customer and vendor sitting in the room with you all day long. It is through conversation, interaction and feedback received from them.
Below we have prepared a a set of questionnaires that assist with this exploration. Let’s get started!
The mission statement describes your overall purpose and objective as an organization.
The key questions to consider:
- What is our overarching intent as an organization?
- What makes us different from everyone else?
- What is the essence of what we’re trying to achieve?
Write a few statements down and finalize the ones that best describe the values of the business. All statements should be in the present tense.
The vision statement describes how the world will look if you achieve your mission. Think
aspirationally here, and describe the ideal end state.
Although a vision statement is usually just a sentence long. It is precise, compact and picturesque. It paints a picture of how the ideal future state is. So, it is again in the present tense.
The key questions to consider:
- What role in the world do we want this organization to play?
- What is the idealized future state we want to create?
- How will people live differently if our organization is successful?
Again, write a few statements down. Merge and consolidate whichever has a higher reach of the future state.
Bonus: Business Core Values
The organization’s core values are the principles that guide decisions and actions at every level
of the workforce. A good set of values promotes autonomy while also building a sense of
- What values would I stand by, no matter what?
- What values do I demonstrate in my own leadership?
- What principles are most important as our employees make daily decisions?
- What values support our current mission and vision?
List all the core value possibilities. Make them specific enough to guide daily decisions. Shortlist to ideally 3-6.