Today we are going to discuss the differences between Vision, Mission and Strategy. One of the things I’ve noticed most whilst consulting in today’s business world is that a lot of buzzwords are thrown around. Some of them are productive, while others are fashionable, and still others are perplexing (Which can sometimes lead to real problems in the running of an organisation!)
What can be particularly perplexing is when multiple words are used to convey related but distinct themes at the same time. When it comes to understanding the differences between their company’s vision, mission, and strategy, both employees and managers are frequently perplexed. While attempting to maintain consistency across all areas, it is easy for these ideas to become conflated and overlap significantly. To begin, let’s define each of the three terms and then examine their main differences and similarities to see how they all fit together.
What is the purpose of a company’s vision?
A company’s vision aims to outline where the company is going and what values are guiding it on its journey to that destination. It communicates the company’s mission by focusing on the future and on the goals that the organisation seeks to achieve.
The vision statement should not need to be revised frequently because it is the foundation of the company and is based on the company’s core beliefs, which should not be changed. These fundamental beliefs or values are those that remain constant no matter what the business climate, profit level, or sales cycle is like at any given time.
As part of their vision statement, many organisations choose to specifically outline or list their core values, which can be found here. When going this route, keep in mind that the list should be short—typically no more than about 5 items in length. These values should not be based on current profits, current trends, or current economic conditions, but rather on historical data. However, they are more consistent than that, as they represent the deeply ingrained core values that have remained at the heart of the organisation throughout the years.
Because it communicates the organisational mission and values, the vision statement frequently has an impact on company culture and expectations, providing guidance to employees. If possible, keep it short and simple to understand.
What is the mission of a company?
The mission statement, like the vision statement, informs everyone about the organization’s purpose—what it is that the organisation exists to accomplish. What are the desired outcomes? It goes beyond the vision, however, by providing a clearer definition of the company’s goals as well as the means by which the vision will be realised.
In other words, the mission statement is a way of putting the vision into action in a concrete manner. It should be specific and include language that is focused on achieving a goal. In addition, it should include quantifiable objectives. Every individual within the organisation has the ability to assess whether his or her own activities will contribute to the achievement of the company’s mission.
Internally, a mission statement is typically communicated to the entire organisation. Employees, stockholders, and executives from all levels of the organisation make use of this tool. It should be as brief as possible, just like the mission. In some cases, it could even be a single sentence.
While the company’s vision is focused on the future, its mission is a blend of forward-thinking and present-day objectives. Despite the fact that it may change over time, it should always remain true to the company’s vision and values.
What is the definition of a company strategy?
The final step in this process is the development of a company strategy. Before beginning to work on strategic elements, it is critical to first define the vision and mission. If not to accomplish the company’s mission, what is the strategy attempting to accomplish? And what is the mission if it is not the actualization of the vision?
Some organisations require additional steps between the formulation of the vision/mission and the formulation of the strategy.. For example, many businesses prefer to start by developing an overall list of objectives or goals, which they then use as the foundation for their company’s overall strategy.
A company’s strategy should include both short- and long-term objectives, as well as a description of how those objectives will be achieved. It is concentrated on the current actions and outcomes that are required to move closer to the achievement of the mission. Strategies for businesses evolve and are updated over time to take into account current factors such as local economic conditions and company requirements.
If so, does your organisation have a vision that is well-crafted and easy to communicate? Does it influence the behaviour of employees? Is your mission aligned with your fundamental values? Is it simple to make the connection between the company’s strategy and its vision and mission?
I hope that this has been useful for you! Thanks for reading!