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Mission and Vision Statements

Mission and vision statements delineate the goals, purposes, and values of an organization. Vision statements provide a broad guideline of organizational goals; mission statements define the scope of the organization, differentiate it from competitors, and summarize why the organization exists. A good mission statement communicates to internal and external publics the strategy of the organization, the framework that will be used in attempting to achieve goals, and the norms and values of the organization.

The terms mission statement and vision statement are closely related but can be distinguished from one another. The vision statement represents a desired future goal that identifies priorities for the organization. Mission statements communicate the strategy of the organization in a more practical sense with regard to goal attainment. A rule of thumb is that the vision statement defines where an organization is going and a mission statement gives information about how it is going to get there.

Vision Statements

A shared vision is vital to organizational success. If all members of an organization share a well-defined goal, it can make more strategic and targeted management and operational decisions than it could without a clear vision.

Vision statements include elements of organizational culture such as values, philosophy, the role of the organization in relation to society and its publics, and other factors that provide guidance and direction. Although vision statements are sometimes critiqued as nebulous and vague, they need to be broad enough to set long-term organizational priorities that must be addressed in the mission of an organization. Vision statements are essential tools of organizational leadership, particularly in light of managing change. According to Nadler and Tushman, a leader creates the vision desired to “provide a way for people to develop commitment, a common goal around which people can rally, and a way … to feel successful” (1989, p. 105).

Although a vision statement is purposefully vague, it indicates to the employees what the organization will strive to attain, the values that it holds and advocates, and the areas of the business that will be most competitively focused on in the future. For instance, an organization whose vision focuses on providing the highest quality product would have different strategic emphases than one focusing on the most innovative new designs, or one with the most inexpensive merchandise. As that is important for a business, it is also essential for a governmental organization, a nonprofit organization, a nongovernmental organization, and even academic institutions.

A vision statement is usually created at the highest level of the organization by the CEO or a team in a leadership position. One potential danger is that simply creating a vision statement at the top of the organization and expecting others to follow it defeats the ownership and responsibility that are fostered when many participants work on the vision statement. Conducting research with internal publics—such as labor and management—and creating a diverse group of representatives from internal stakeholders to create the vision statement is the preferred method for crafting an organizational vision. This method results in a shared vision of what employees aspire to and develops participatory commitment to that vision. Done well, a vision statement can create high levels of job satisfaction, productivity, and lower turnover, making for a more efficacious organization. A vision statement is a management tool to be used, not a reputational tool to assert the organization's image.

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