The process of strategy formulation is the synthesis of all the background work and analysis of external and internal environment. An organization’s strategy is the complete course of action while accounting for conditions in future which may or may not realise. This vision & mission article covers an important and foundational part of strategy formulation process.
The synthesis should begin with the long-term vision of the leader of the organisation The vision is a North Star or Guiding Light that an organisation aspires to reach. It is the future state of the organisation. Although many companies don’t have formal or written Vision documents and they are doing well, as a practitioner I strongly recommend preparing a formal document containing vision and mission statements. The reason for the lack of formal statements may mostly be attributed to the evolution of the organisation or the strong influence of its visionary leaders. For example, Apple does not have any formal statements on its website, however, the company is driven by a sense of direction given by its founder Steve Jobs. His statements provide ample proof of the undocumented statements.
Leaders must devote sufficient time and energy to envisioning the future and that should be documented in the form of a Vision Statement. The Vision Statement may be seen as a tool to cascade down the end state to every layer of the organisation. The written Vision Statement also helps the leaders to clarify their thoughts on the future of the company.
The Mission Statement essentially tells what an organisation is doing to reach its end goal encapsulated in the Vision Statement. To reiterate, Vision is the future while Mission is the present. Vision is the end state while Mission is the work being done and to be done to reach the future state.
Values determine how the organisation will undertake its mission to reach the vision.
Lastly, the Goals are the statements to periodically check whether the organisation is travelling down the right path for the future. The goals are the milestones with specific timelines attached to them.
Defining Vision, Mission, Values and Goals is imperative for any business to a long-term and sustainable growth path. Formulation of these is an essential and starting part of Strategy Formulation. A word of caution here is that the statements should NOT become only an exercise in Public Relations. The set of statements should be derived from the commitment and organisations must be able to execute it.
However, as a practitioner, I have witnessed that business leaders usually do not want to spend much time developing these guiding principles. Moreover, business leaders and practitioners see it as a check box to be ticked. It is generally considered pedantic with few practical values. I would strongly differ in that and aver that these principles are the most foundational for an organization.
Benefits of Vision & Mission Statements
Although I will not discuss the definitions or lay out the process of development of these statements, I am compelled to share some key benefits of these statements for leaders and organisations.
- They provide clarity and direction to the company and its employees, helping them understand their purpose and how they fit into the company’s overall strategy.
- They help the company stay focused on its priorities and make decisions that align with its overall objectives.
- A compelling vision and mission can inspire and motivate employees to work towards a common goal and create a sense of unity and purpose.
- By articulating its unique values and goals, a company can differentiate itself from its competitors and create a unique brand identity.
- Establishing clear goals allows the company to measure its progress and hold itself accountable for results.
Summary
Having a clear vision, mission, values and goals provides a clear view of how an organisation wants to exist and compete.
Vision is a North Star and Mission is what the organisation is doing to reach the end goal. Vision is the future while Mission is present. Values are how we are doing our work and Goals are specific milestones in the organisational journey. These sets of statements help, if communicated effectively, the entire organisation by eliminating indecision and by way of guidance.
These statements thus help leaders in creating a roadmap for the company’s business plan and help it stay focused, motivated, and differentiated in a competitive business environment.
Leaders should not outsource it but take ownership of building strong foundations through careful and deliberate development of Vision and Mission statements.
Note: The article is an excerpt from the up-and-coming book on strategy for practitioners by me. Please contact rohit@rccoadvisory for any pre-booking inquiries
Rohit Chaturvedi
