Importance of Mission and Vision in Organizational Strategy
The mission and vision of an organization are usually in line with its purpose. All organizations need a mission and vision, whether it’s a candy factory or an aluminum die-casting manufacturer. A mission and a vision are very important as they answer critical questions about the organization, including what it is about, what they value, and where they are going. Studies have shown that work ethic and performance are at an all-time high in organizations where the mission and vision are communicated and understood.
Both these two terms aim to give direction. However, they have different definitions. A vision refers to the organization’s destination, what the organization hopes to achieve in the future. On the other hand, mission refers to what the company is doing now and is a general statement about how the organization seeks to achieve its vision. In some instances, the two also come accompanied by core values. These refer to how everyone in the company will behave during the process and the code they will operate by.
Why Vision and Mission Are Important in an Organization
There are three critical roles that the mission and vision of an organization play. Organizations that lack them tend to go around in circles and achieve less than they could. The following are some benefits of having a vision and a mission.
They Layout the Purpose of the Organization to the Stakeholders
Stakeholders play key roles in an organization; they have a huge influence and stake in its future. Key stakeholders in an organization could be investors, customers, institutions, and employees, among others. A vision and a mission statement communicate to the stakeholders the organization’s goals and how they plan to accomplish them. These statements can also encourage potential investors to invest in the company.
Aid in Strategy Development
An effective mission and vision offer a target for strategy development. A good way to visualize how they all blend in forming a strategy is by using a funnel. The broad part of the funnel is the mission statement, and the narrow part is the vision statement. What distills the mission from the vision is strategy. The strategy is clear and explicit about what the firm will and won’t do to reach the vision. There are also vision statements that offer a bridge between strategy and mission. Effective vision statements foster a spirit of improvement and innovation.
Developing Measurable Goals
An organization should be able to know if they are progressing well, and the mission and vision aid in this. If the goals and objectives of an organization are not met, then the company needs to reassess the strategies and objectives of the mission. In most organizations, these measurable goals include profitability, employee satisfaction, and, for some, environmental responsibility.
Vision and mission relate to an organization’s aspirations and purposes. These brief written forms of statements are critical to all organizations. Mission statements communicate the reason for a company’s existence and how they will serve the key stakeholders. Strategy development is also possible courtesy of these two terms. The stakeholders will feel much more confident with an organization if their mission and purpose align with what they believe in and talk with confidence.