In today's fast-paced world, most organizations have Vision and Mission statements, but often, they're either poorly crafted or lack genuine conviction. Whether due to a lack of understanding or the pressures of a hectic day-to-day schedule, these statements can end up being overlooked. Since both are (or should be) the foundation of all decision-making, they should be more than just word on a paper.
Vision inspires and drives long term goals
A vision statement outlines the long-term aspirations and goals of the organization. It describes what the organization aims to become or achieve in the future. As a results, it serves as a guiding light, steering the collective efforts towards a shared destination. It transcends the mundane, inspires and empowers individuals with a sense of purpose. It guides strategic decision making, all actions should contribute, directly or indirectly, to achieving the vision.
Deep reflection is required to formulate an overarching vision for an organization. It might take a couple of iterations before arriving at the final vision statement, and feedback from different sources, both inside and outside the organization, is valuable.
Additionally, translating a vision into a compelling statement can be a challenge. Your statement must be clear, concise, inspirational, and timeless. Steer away from jargon or complex language. Having an inspirational vision statement will evoke enthusiasm and a sense of purpose, and since a vision statement is concerned with aspirational long-term goals, avoid tying it down to a timeline. Consider NASA's 2023 vision statement: "We reach for new heights and reveal the unknown for the benefit of humankind". It is simple, easy to understand, ambitious, and timeless. NASA clearly articulates a bold and inspiring vision that goes beyond their immediate business objectives. Through its vision, NASA clearly instills a sense of purpose that goes well beyond the company's day-to-day activities. NASA's vision statement serves as a guiding beacon for strategic decision-making.
Mission statement is the road-map leading to the vision
Complementing the vision statement is the mission statement. A mission statement is focused on the present activities of the organization and serves as a road map that delineates the steps required to achieve the overarching vision. It articulates the fundamental purpose and core values of the organization, it defines what the organization does, who it serves, and how it operates. When crafted properly, mission statements, act as catalysts for focused and coordinated action. NASA's mission statement: "Drive advances in science, technology, aeronautics, and space exploration to enhance knowledge, education, innovation, economic vitality, and stewardship of Earth" is clear, easy to understand, and explains how the overarching vision will be achieved and why.
How do vision and mission statement guide decision making?
When facing difficult decisions, leaders and employees alike, can test the potential outcome of their decisions against the organization's vision and mission statement. Will the outcome align with or harm these guiding principles? The answer guides decisions.
Why do both statements matter so much?
A 2021 study from the Boston Consulting Group, and a 2017 study from Price Waterhouse Cooper, found that the most innovative companies consistently outperform their peers in terms of revenue growth. Both studies correlated these performances to company cultures that foster innovation. Stimulating innovation is only possible in organizations that are not risk-averse and that allow employees to take a reasonable level of initiative. To allow for employees, and leaders, to successfully take initiatives, clear and easy to understand guidelines are required. That's were the vision and mission statement comes in.
Consider the U.S. Army leadership philosophy of "Mission Command". It is a command and control approach that emphasizes decentralized decision-making. This approach is essential during conflicts because agility, and initiative at lower levels is indispensable in a volatility, uncertainty, complexity, and ambiguous (VUCA) environment. Key to enable initiative and decision making at lower levels, is a common understanding of the mission and the commander's intent. Leaders communicate their intent and objectives clearly, then allow subordinates the liberty to take initiative to meet he intent and the objectives. Trivia, the now commonly used abbreviation VUCA, was first used by the U.S. Army War College in 1987 and picked up by the business world in he late nineties.
To conclude
The vision statement paints a picture of the future, describing the organization's ultimate goals and aspirations, while the mission statement defines the organization's current purpose and activities that ultimately support the vision. Together, they provide a framework for strategic and operational decision-making. They serve as guiding principles, helping leadership and employees alike, to assess whether or not their decisions are in alignment with the organization's core purpose and long-term objectives. Both statements essentially act as a decision-making compass. Pausing to take the time to reflect deeply on both statements, and subsequently clearly putting down in writing, is a sound investment in the future of your organization or business.