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Mission and vision statements delineate the goals, purposes, and values of an organization. Vision statements provide a broad guideline of future organizational goals; mission statements define the scope of the organization, differentiate it from competitors, and give a summary of 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 there are distinctions between the two. The vision statement represents a desired future goal that identifies general priorities for the organization. Mission statements normally communicate the strategy of the organization in a more practical sense with regard to goal attainment. A general rule of thumb is that the vision statement defines where an organization is going and a mission statement gives basic information about how it is going to get there.

Vision Statements

A shared vision is an integral part of an organization. If all members of an organization share a well-defined goal, the organization can make more strategic and targeted management and operational decisions than it could without a clearly specified vision. A vision spells out a target for change and the desired long-term goal state.

Often vision statements will include elements of organizational culture such as values, philosophy, the role of the organization in relation to society and in relation to publics, and any other factors that might provide overall guidance and direction in shaping the organization. Although vision statements are sometimes critiqued as nebulous and vague, they can be an invaluable tool for determining long-term organizational priorities that must be addressed in defining the mission of an organization. Vision statements are also essential tools of organizational leadership, particularly in light of managing change. A leader creates vision to “provide a way for people to develop commitment, a common goal around which people can rally, and a way…to feel successful” (Nadler & Tushman, 1989, p. 105).

Although a vision statement is intentionally vague, it gives the employees of the organization an indication of what the company will strive to attain in the future, the values that it holds and advocates, and the areas of the business that will be most competitively focused on in the future. A good vision statement should allow all employees to answer the question “Where is this organization going?” in a similar manner, and it helps to define the purpose and culture of a company. 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. The vision statement indicates what core competencies the organization and its employees should reward.

A vision statement is usually created at the highest level of the organization by the CEO or another senior executive in a leadership position. A danger here 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 at crafting the vision statement. Conducting research with internal publics—such as labor and management—and creating a diverse group of representatives from internal stakeholders to work on the vision statement is the preferred method for crafting an organizational vision. This method results in a “shared vision” of what employees at all levels of the organization desire for the future, and develops participatory ownership and commitment to that vision across the organization. Research shows that these factors create higher levels of job satisfaction and productivity, as well as lower job turnover, making for a more efficacious organization.

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