Vision and Mission statement describes the company’s position in future and goals respectively. A vision statement defines at what position the company wishes to be in future. For example, vision statement of Accenture is “To become one of the world’s leading companies, bringing innovations to improve the way the world works and lives.” Mission statement tells us about the company’s objectives, goals, and how will they achieve it. Let us learn the difference between vision and mission statement.
Vision and Mission Statement
This is the long-term future plan or dream that you envision for your organization. This vision describes the long-run objective of your company, usually for a time frame of five to ten years or even longer. It essentially envisions what the future of the company should look like and incorporates that via strategies.
A vision statement should actually be timeless, always pushing the company to greater heights. But it is important not to be unrealistic in your planning, not to set impossible targets.
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The main purpose of the Vision Statement is to communicate the aspirations and ambitions of the company.
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Characteristics of Good Vision Statement
- It is motivational, it must inspire the reader
- Vision statement is always future based
- Must be a reflection of the company’s values and their culture
- Should be aimed at positive growth
- Defines the company’s future and their reason for existence
Let us take the example of IKEA whose Vision Statement is “Our vision is to create a better everyday life for many people.” This is a short precise and inspirational statement that clearly guides the company towards the future.
A mission statement is like a road map of how to achieve the goals set in your vision statement. It defines the purpose of the organization. A mission statement is generally longer than the vision. It covers some or all of the following points
- Business of the company
- Who the company serves
- Their reason for existence
- How they go about their day to day work
A Mission statement will motivate employees to work hard towards achieving the goals of the company. It will also inform and inspire potential customers. It is an important step in strategic planning.
For example consider the Mission Statement of Nike, “to bring inspiration and innovation to every athlete in the world” (*If you have a body, you are an athlete.) Nike aims at inspiring you to better your lives, whether you are a premium athlete or a regular person.
Importance of Vision and Mission Statements
Vision and Mission Statement are both important for the progress and growth of the company irrespective to the size of the company. Vision and Mission statement are essential for communication with your employees and your customers. They are also important branding tools.
Let us look at the importance of Vision and Mission Statements to internal and external stakeholders:
- Guides the management in times of crisis and changes
- Defines the necessary standards and objectives that must be achieved
- Reminds employees of the company goals and inspires them to achieve it
- Helps in decision making
- Vision and Mission Statements also help communicate with consumers and potential consumers
- Also creates links with other parties like suppliers, creditors, partners etc.
- Serve as a great tool for Branding and Public Relations
Examples of Vision and Mission Statements
Vision Statement of Accenture
Mission Statement of Apple
Solved Question on Vision and Mission Statements
Q: What are the three main components of the commercial mission statement?
Ans: According to Chris Bart, the three main components are
- Key Market (target audience)
- Contribution to the market