The common basis in your company is the mission and the vision. The team members and also the customers should be able to understand these. If the goal can be achieved together, this motivates the employees. The vision represents the mission statement while the mission represents the philosophy of a company. Both should therefore also be in context. In the end, this forms the basis of a company’s strategy (presentation, communication and values).
The vision and mission are ideally suited as guidelines and draw the path to the goal. They help with orientation and have a motivating effect. The vision describes the goal. The mission, on the other hand, describes the path and the direction to be taken.
The final strategy of your company results from this. With the corporate vision you create meaning. The question of why. The meaning should always be linked to benefits for others. As a rule, something is considered to make sense if it benefits others.
“It never, ever matters in the question of meaning what we expect from the world, but what the world expects from us alone.”
Viktor Frankl
In the Harvard Business Review in the 1990s, James C. Collins and Jerry I. Porras, using many company examples, concluded that the fundamental beliefs and values, as well as the very purpose of a company, what makes it substantial, are the essence core. The essence core can be, for example, innovation, customer service, fair conditions or good teamwork. In their research, Collins and Porras found that the only thing that matters is that there is what you call a “core ideology” in the company that is relevant to everyone. The values and the core are in the company and in its history.
Credibility is a prerequisite
Credibility is the most important principle for a mission and corporate vision. It is created by
- the employees are involved in the formulation
- the mission and vision are permanently communicated and exemplified
- goals and everyday actions match the corporate vision and mission
The mission statement
A corporate mission statement serves as an internal and external communication tool. The mission statement is composed of mission and vision statements as well as the resulting corporate values.
- Practical action orientation for employees
- Basis for a successful orientation and strategy of your company
- Fundamental values, guiding principles and mutual obligations
- Motivates employees to achieve common goals (we-feeling)
The mission
The mission describes the purpose of the company. This is the company’s reason for being and specifies the positive contribution that the company wants to make to customers and/or society. The mission is not addressed to the employees, but to the customers. They should know what the company stands for. A mission is particularly good if it addresses the values that are important to the customers and with which they can identify.
- How do we want to be seen by our customers?
- Why should the customer trust and be loyal to us?
Define the mission as openly as possible, because otherwise it limits the possibilities of the company. The mission describes the overall purpose of the company. The vision describes a goal in the future, which is to be aimed at based on the mission.
The mission should be communicated as briefly and concisely as possible. Some companies also formulate for whom they work.
A help for the formulation: We work daily to achieve our vision (goal) by XY (when) by doing XY (how).
“You can find your vision in your past.”
Stefan Merath
The Vision
The vision describes what a company wants to achieve in the future. It summarizes the strategy, values and culture of the company and is set for a longer period of time. In contrast to the mission, the vision primarily addresses the employees, giving them orientation. Likewise, it has an inspiring effect on the outside and creates emotional ties to a company.
A good vision should meet certain requirements
- be formulated in a simple and understandable way (easy communication)
- arouse emotions (motivating effect)
- Create meaning (sustainable drive)
It is noticeable that the vision is usually very concise. Often it consists of only one concise sentence. A vision is good if many people feel that this vision is important and significant.
The values
Once the mission and vision have been defined, you can then derive the company’s core values to complete the mission statement. These contain the desired principles of the company. Three to four values are ideal. There should not be more than five values.
Examples of values:
- Adidas: Performance, Passion, Integrity, Diversity
- Adobe: Genuine, Exceptional, Innovative, Involved
- Hilti: integrity, courage, teamwork and commitment
Each of these core values should be implemented well beyond the normal industry standard.
Examples of the vision
Microsoft articulated one of its first visions in 1975: “A computer on every desk and in every home.”
Amazon: “Our vision is to be the most customer-centric company in the world; to create a place where people can find and discover everything they want to buy online.”
Facebook: “Giving people the power to share and make the world more open and connected.”
Wikipedia: “A world where every single person has free access to the sum of all human knowledge.”
Ben & Jerry’s: “Making the best ice cream possible in the nicest way possible.”
LinkedIn: “Creating economic opportunities for every member of the global workforce.
Airbnb: “Tapping into the universal human longing for belonging – the desire to feel welcomed, respected and valued no matter where you are.
IKEA: “Creating a better daily life for many people.”
Mission examples
Wikipedia:
“The mission of the Wikimedia Foundation is to empower and engage people around the world to collect and develop educational content under a free license or in the public domain, and to disseminate it effectively and globally.”
IKEA:
“Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”
Problems with the vision and the mission
- Mission and vision are confused: In this case, short-term and long-term goals are equated.
- The vision is contradictory or too complex: For a vision statement to be effective, it must first be understood.
- It is not realistic: A vision statement that formulates unattainable goals or has no reference to the market and the customers is more likely to achieve the opposite instead of commitment and motivation.
- The vision has no reference to the corporate values: A good vision statement offers a holistic perspective.
Recommended article: Why you need a corporate mission statement