2.5 Mission and Vision Statements
Definitions for mission and vision statements vary widely, nearly as much as opinion do on how to use them. Some believe vision and mission statements are the same thing. Others say the vision statement explains the “what” and the mission statement explains the “how”. Others think it’s the other way around. However you look at it, your organization’s vision and mission statement can be whatever you want it to be. Almost all organizations come up with a flowery phrase they like, tie a bow on it and call it whatever they want. The goal of this article is to show how vision and mission statements can actually be useful.
Vision Statement
For our purposes, a firm’s vision statement is the overall dream that a firm hopes to accomplish. It is a snapshot of the future the firm hopes to create in the world; a timeless phrase that outlives changing market strategies and fluctuations within the company and can be as flowery or concise as necessary, so long as it accomplishes its purpose. The vision statement expresses the organization’s reason to exist which is useful in providing the organization a flagship to follow; something to always look to for direction. A local food bank for example might have the following as their vision statement: “To bring an end to hunger in our community”. The vision statement explains quickly and distinctly the overarching goal of the organization and may be what motivates the firm. The vision statement however, does not provide the direction to take in order to achieve that goal. It gives the what without the how.
Mission Statement
An organization’s mission statement takes the vision statement to the next level by providing insight on how the organization will achieve its overarching goal. Going back to the example with the local food bank, an appropriate mission statement might be the following: “To alleviate hunger within our community through efficient collection and distribution of food products that effectively reach those in need”. As you can see, the mission statement repeats the vision statement but then takes the next step to express how to achieve the vision. However, it’s still vague. Our example for the food bank could be just as applicable to any other food bank in the world. AGCO, a fortune 500 company, has the following mission statement: “profitable growth through superior customer service, innovation, quality and commitment”. That statement could be applied to any other business in the world. So as you can see, some mission statements are better than others. What really makes the difference is the strategy behind the statement.
Connecting Mission Statements to Strategy
No mission statement is complete if it’s not broken down into your strategy. Taking the example from the food bank, “To alleviate hunger within our community through efficient collection and distribution of food products that effectively reach those in need”, we can break it down as such:
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Goal: Alleviate hunger
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Method: efficient collection, efficient distribution, effectively reach those in need
Now we can complete the utility of the mission statement by applying strategy to our methods. This involves taking each method and strategizing what the company will do to accomplish each. For example, using the food bank’s method of efficient collection of food, an appropriate strategy may involve teaming up with local volunteers to collect food, advertising through pamphlets or signs, or heading up food drives at local schools.
The most important thing to remember is that vision and mission statements are meant to be useful. If they don’t actually help an organization accomplish anything, there is no point. The utility of the vision and mission statements is best found through creating a culture oriented around them and strategy which define how to accomplish them. Plan on spending much more time on the implementation of the statements than on the creation of the statements.