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
