Understanding about Mission and Vision Statement?

Mission Statement:-

Mission statement is a statement of purpose of a company and its reason for existing.

Example:-

Apple designs Macs, the best personal computers in the world, along with OX-OS X, i-Life and i-work and professional software.

Vision Statement:-

Vision statement describes the organization as it would appear in a future successful state.

Example:-

Nestle as to be a leading, competitive, health and wellness, company is delivering improved shareholder value by being a preferred citizen, employer, seller and products.

Difference between Mission and Vision Statement

Contents Mission Statement Vision Statement
About Talks about purpose and objective. Defines purpose and value of the business.
Answers the Question ·         What do we do?

·         What makes us different?

Where do we aim to be?
Time All about present which lead to future. All about future.
Function ·         Tells goals.

·         Defines measures for success.

·         Works for team, leadership and stockholders.

·         Tells future position.

·         Gives inspiration.

·         Gives understanding of existence.

Development Phases ·         What we do?

·         For whom we do?

·         Why we do?

·         What are the benefits?

·         Where do we want to be going forward?

·         When we want to reach that stage?

·         How do we want to do?

Features of an Effective Statement It includes purpose, value, client, stack holders and responsibilities. It should be clear, memorable, and achievable and describe future.
Change We may change but it must tie back to core values, needs and vision. We must avoid changing as it includes organization’s foundation.
Purpose To manage with greatness and strength. To lead with inspiration and courage.
Feeding and Creating Feed into the confidence of organization by feeding present self-talks. Creates moment of growing anticipation about the future and compels the picture that what comes next.
Benefits ·         Ensures unanimity of purpose.

·         Provide basics and standards.

·         Serves as focal point to individual.

·         Provide pathway and direction.

·         Ensure clarity of purpose.

·         Serve as focal point to stack holders.

 

Components of Mission and Vision Statement?

Components of Mission Statement:-

There are nine components.

  • Customers: (WHO)

For example Johnson and Johnson, We believe our first responsibility is to doctors……

  • Products and Services: (WHAT)

For example AMAX Engineering Company, AMAX Principal Products are Molybdenum, Coal, and Lead…….

  • Markets: (WHERE)

For example Block Way, Our emphasis is on North American Markets……

  • Technology: (WHAT)

For example RJ Reynolds, We will strive to meet need of adult smokers by developing technology that reduces health risks.

  • Concern for Growth: (WHAT)

For example Hoover Universal, Company will conduct its operations prudently and will provide the profits and growth.

  • Philosophy: (WHAT)

For example Kellogg, Our world class leadership is dedicated to management philosophy.

  • Self-Concept: (WHAT)

For example Crown Zellerback, We are committed to competition within 1000 days.

  • Concern for Employees: (WHAT)

For example PSE and G Company, to compensate employees with benefits…….

Components of Vision Statement:

Components of vision statement are given below.

  • Customer: (WHO)

For example Wall Mart, We sell cloths to target customers……

  • Customer Needs: (WHAT)

For example Restaurant, We do not sell food, we sell satisfaction to hunger.

  • Product / Service: (WHAT)

For example Furniture Store, We sell sofas or beds upon which to sit and sleep.

  • Values: (HOW & WHAT)

For example Lowe’s, we will provide customer-valued solutions with the best prices, products and services to make Lowe’s first choice for home improvement.

Benefits of Mission and Vision Statement?

Mission Statement Benefits:

  • Ensure unanimity of purpose
  • Provide standards for allocation of resources
  • Establish organizational climate
  • Serve as focal person to individual
  • Facilitate objectives
  • Specify purposes and translate them
  • Help to make daily operations
  • Motivate employees

Vision Statement Benefits:

  • Provide a going concern to business
  • Create continuity of business operations
  • Promote organizational interest
  • Enhance employee support on the organizational goals
  • Build confidence with the business
  • Increase the productivity and work quality of the employees
  • Establish purpose and direction of the organization

General Benefits of Mission and Vision Statement:

  • Guide planning and implementation
  • Define performance standards
  • Establish productive and goal oriented culture
  • Communicate purposes and goals
  • Provide direction
  • Resolve divergent views
  • Achieve high performance

The writer is a Business Graduate Student (Banking and Finance)

University of Agriculture, Faisalabad. Pakistan

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The views expressed in this article are those of the author and not necessarily those of The Lahore Times.

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