The mission vs. vision confusion and why it matters
Original Publish Date: Feb 10, 2020
Look through any corporate website, maybe even specific investor presentations. Search for the mission and vision statements. You will very likely find a vision statement that sounds like a mission. Or, sometimes, a mission statement that’s also trying to work as the vision at the same time.
Does this confusion matter? We often see mission and vision statements thrown in as an afterthought in every corporate exercise in any case.
I honestly believe that mission along with a focused vision statement can truly shape the identity of any company. The employees get their directives from these statements. Any stakeholder for your company also understands what you’re all about through these statements.
So, let’s get the definitions right for starters!
There are so many definitions out there. And often these definitions blend into each other. Let’s keep it simple and look at the basic difference.
Mission tells you why you exist.
Vision tells you where you should be going.
That’s the beginning and the end of it. Nothing more. Nothing less.
Can you see the benefit of spending time developing these statements?
A well-thought-out mission statement helps your company hold on to its core purpose in an ever-changing environment. The company knows its reason to exist and therefore pursue efforts that align well with its purpose. The mission influences the company’s approach towards organic and inorganic growth efforts. The type of products or services it offers, the alliances it builds, the funding of specific startups, and much more.
Mission statements are usually short and inspiring. Following are few examples of well-crafted ones.
Pepsi – “create more smiles with every sip and every bite”
Microsoft – “empower every person and organization on the planet to achieve more”
Tesla – “accelerate the world’s transition to sustainable energy”
Alibaba Group – “make it easy to do business anywhere”
Starbucks – “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”
Let’s now focus on the vision statement.
The vision acts as a north star.
The vision is always in service of the mission. It tends to be well defined, targeted, and specific. Vision statements come with a timeline – ex: 3/5-year vision.
I like the checklist below to craft a well-defined vision statement. Verify if your vision statement has the following metrics and definitions,
Revenue (in $)
Profit Margin (in %)
Focus Markets
Products/Services/Solutions
Regions
Customer Categories
Key Value Proposition Phrases
You can add other financial metrics that may also be crucial for your company’s health. Keep this to a minimum. Publicly traded companies normally restrict their well-defined visions for internal use. Occasionally, you find certain companies sharing parts of their vision with the broader public.
So, the next time you’re involved in an exercise to clarify the mission and vision of your company; latch on to that opportunity to do some internal soul searching and get it right. You might very well dictate what the legacy of the company will be for years to come!