06/18/2018 by Jason Smale
In the early stages of business planning, while you’re attempting to frame the purpose and objectives of your organization, you’ll come to a point where you begin crafting three very important statements, through which future managerial decisions will be birthed. These statements are the Mission, Vision, and Values statements of your organization.
You can read our blog on crafting your Mission statement for more details.
A well-crafted Mission statement for an organization aims to communicate to both those inside and outside of the organization what the company’s fundamental purpose is for existence.
The Mission statement provides a framework for future managerial decisions, ensuring that all parties involved in the strategy development and decision-making processes are “on the same page.”
One of the fall-backs to not having a proper Mission statement for your organization is there is no reference point to refocus the management team when an impasse occurs about future product and service offerings, as well as competitive strategies.
Example of a good corporate mission statement
“To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.”
You can read our blog on crafting a Vision statement for more details
The Vision statement of an organization communicates the mid-term and long-term goals of the organization. It provides a 1,000-foot executive view of the organization’s future objectives and how the management team intends to achieve those goals.
If you consider that the mission statement defines the purpose of an organization, the vision statement defines the path that the organization is taking. A well-crafted vision statement with a mission statement has the ability to bring a team together, unifying them under a defined purpose and set of objectives as they compete in the marketplace.
Example of a good corporate vision statement
“To offer designer eye-wear at a revolutionary price, while leading the way for socially-conscious businesses.”
You can read our blog on crafting a Value statement for more details
The Values statement of an organization informs the stakeholders of the company’s top priorities and what the company’s principles and beliefs are. A good value statement will help a company draw interest from and connect with targeted customers, it will also inspire staff that believes in your company’s values.
The value statement of an organization helps guide the ethical choices a company will make in how it engages its stakeholders and competitors. Whether you have defined your company’s value statement or not, it has a set of active values, they are governed by the values of your key decision makers and the choices they make on a daily basis.
A company that is firmly established and understands its purpose to its key stakeholders possesses a vision for its future and guides company culture through shared values is far more likely to succeed than those that aimlessly navigate the waters of day to day operations.
Professor James L. Heskett wrote in his book The Culture Cycle, effective culture can account for a 20-30 percent differential in company performance in contrast to competitors who operate as “culturally unremarkable.”
Believe it or not, even the front-line staff members feel and know when the company they are working for clearly understands its identity and has both an understanding of its purpose and vision for the future. Employees working in a company with a well-established identity and purpose are not only more productive but more likely to commit themselves to the company longer, reducing the expenses associated with high turnover rates.
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