Vision, Mission, Strategy
It became rather standard for companies (at least listed companies) to write Strategy statements with the twofold objective of i) stressing the fundamental goals that the organization seeks (including delineating the scope and domain of their activities, outlining the particular advantages or capabilities they hold) and ii) communicating the underlying and enduring core principles that guide the way the organization should operate.
Although there is no unanimous agreement on what a vision / mission statement should be, common wisdom sees a firm’s mission as a long-term ambition, preferably enthusiastically phrased, that ensures the identity, consistency and stability of the firm.
„Strategic management is characterised by the capacity to lead men towards the realization of a design. There can be no strategy without a will, vision or intent” ([Grandval and Ronteau, 2011]).
The vision should explicit the reasons why people would support and value the firm, why investors and lenders would provide funds, why customers would want to buy form it and why the appropriate people would be ready to work (hard) for it.
Vision
The vision aims to provoke the construction of an invented future. It articulate (usually in bold and compelling terms) what the company wants to achieve. The vision statement is usually one-sentence statement describing the clear and inspirational long-term desired change resulting from an organization or program’s work.
Vision statements are used equally by profit and non-profit organizations, e.g. :
„A computer on every desk in every home” (Microsoft in the 90’s),
„Shaping the future by preserving our heritage, discovering new knowledge and sharing resources with the world” (Smithsonian),
„to provide access to the world’s information in one click” (Google)
„Prevent and alleviate human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors” (Red Cross
The vision is an intellectual representation of what the company aim to become in the future. The vision sets a horizon ( [Beenis85] ) while leaving much room for innovation. A vision must be:
Realist the vision aims to transform the organization and get it to exceed its own limits, but it must remain consistent with the surrounding environment and its likely evolution,
Credible the vision federates the energies of individuals and encourages them to stretch their own comfort zone. It must not, however, become excessive and disproportionate compared to the existing resources of the firm, otherwise its mobilizing effect may get lost,
Compelling the vision must be original, attractive and constitute a promise, a dream. The vision must suggest how the company intends to distinguish itself from its competitors.
„ A VISION is the future desired state and goals that represent an aspiration which helps mobilize the energy and passion of organization members. The vision answers the question: “what do we want to achieve?” – [Johnson et al., 2011]
The vision statement should focus on the end result (if i about the “*what*” and not about the “*how*”). Henry Ford for instance had the vision that “*the ownership of a car should be within the reach of every man*’ ’. Amazon’s vision is “*to build a place where people can come to find and discover anything they might want to buy online*’.
The vision statement may suggest what competitive advantage the company can derive in the years to come; i.e. how the company will build a set of distinctive resources & competences that will match the evolution of its environment and allow to out-perform competition.
The vision is a declaration of principle and needs to be supplemented by more specific elements. Note: sometimes vision and mission statements are permuted, that is the mission statement is the broadest and the vision statement the more specific.
Mission
The mission characterizes and clarifies the vocation, the purpose of the company to its customers and stakeholders. „*The mission (or purpose) is the first dimension that is more operational. It characterizes and clarifies the vocation, the raison d’être of the company for its customers and more broadly its stakeholders. It positions the company on the market and in contrast to its competitors. It stresses the businesses, main activities, key differentiating factors and strategic objectives of the company. It defines the framework within which, from day to day, decisions are made. It extends the values of the company, its culture” (johnson2011)
„ A MISSION is the the overriding purpose of the organization. The mission answers the question: “ what business are we in ? ” – [Johnson et al., 2011]. A mission statement is a kind of umbrella value proposition.” – [Johnson et al., 2011] „ A MISSION is the the overriding purpose of the organization. The mission answers the question: “ what business are we in ? ” – [Johnson et al., 2011]. A mission statement is a kind of umbrella value proposition.” – [Johnson et al., 2011]
By and large, the mission describes what the company does ([Hill et al., 2016]). For instance the BBC claims that „Our vision is to be the most creative organization in the world” (www.bbc.uk) which suggests differentiation based on creation. Their mission statement is more precise and can be assimilated to a value proposition : „Our purpose is to enrich people’s lives with programms and services that inform, educate and entertain. ” (ibidem).