The Importance of Mission and Vision Statement

The importance of Vision and Mission

- If an organization cannot define it's "reason for existing (Mission) or "where it is going" (Vision), how can it align the resources towards a successful future? It defines the character of an organization and allows it to differentiate itself form competitors by answering three key questions: What do we do, for whom do we do it, and what is the benefit.

- A vision serves as a guide for company's decision-making with clarity about "big picture” and helps its managements to know what decisions and tasks best align with the mission of the company. In the case of strategic changing, visions provide guidance about what core to preserve and what to progress towards. It helps communicate the goals of the plan to employees and the public.

- It provides the glue that holds an organization together as it grows, decentralize, diversifies, expands globally and develops workplace diversity.

- It helps determine who is inside and who is not. It attracts and retains people whose personal values are compatible with the company’s core values and repels those who have incompatible values. Through a shared understanding of priorities, employees are more likely to stay motivated and have higher levels of productivity. Visions that have an element of human values attracts commitment of employees while creating meaning in their lives.

References:

Pearce, John A. and Fred David. (1987). Corporate Mission Statements: The Bottom Line. Journal of The Academy of Management Executive (1987-1989), [online] Volume 1(2), p. 109-15. Available at: http://www.jstor.org/stable/4164734. [Accessed 19 Nov. 2016]

James, C and Jerry, P. (1996). Building Your Company’s Vision. Journal of Harvard Business Review, [online]. Available at: https://www.owasp.org/images/1/1b/Building_Your_Company's_Vision_-_Jim_Collins.pdf [Accessed 19 Nov. 2016]

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