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IMPORTANCE OF HAVING A CLEAR VISION AND MISSION STATEMENTS FOR YOUR BUSINESS

By Matthew King | Business Planning

May 15

This is a very important part of every business, and should be taken seriously. It serves as the core on which your organization is built. Mission and vision are critical elements of a company’s organizational strategy. They are foundational guides in the establishment of company objectives. Tactical plans of a business and strategies are then developed from this. The statements should be short, express the organization’s purpose in a way that inspires support and ongoing commitment, set the tone of the company, and to outline concrete goals.

Why mission statement?

It is a business’ statement of purpose. It guides all decision making surrounding a business. The mission statement will generally help workers in a business align their actions and thoughts towards what is needed by the business. It offers insight into what company leader’s view as the primary purpose for being in business.

Why vision statement?

Vision statements are sometimes confused or used synonymously with mission statements. However, vision statements should offer more of a direction and include a perspective of corporate values. A vision might provide a direction for the company for the next five to 10 years, while also noting a commitment to integrity, transparency, openness and other such values. “Mind tools,” indicates that a vision statement takes your mission and adds an element of human values. It should inspire employees and given them a sense of purpose.

Vision Statement Purpose

They are usually viewed as being synonymous with mission statements. However, they offer more of a direction and include a perspective of corporate values. A vision might provide a direction for the company for the next five to 10 years, while also noting a commitment to integrity, transparency, openness and other such values. A vision statement should inspire employees and given them a sense of purpose.

A mission and vision are elements which are standard of a company’s organizational strategy. Most established companies develop organizational mission statements and vision statements, which serve as foundational guides in the establishment of company objectives. The company then develops strategic plans for their objectives.

  • Determines a business’ direction – it is used by employers to remind their employees of the reason they are in business. It shows where the business wants to get to, and help align employees for actualizing that.
  • It focuses the company’s future –This primarily depicts a company’s vision. The vision is about a preferred future. Where will the business be in a couple of years to time? The mission tells us what we’re doing today that will then take us where we want to go in the future.
  • It provides a template for decision-making – A mission statement sets important boundaries which enable business owners to delegate both responsibility and authority to employees. It provides a framework for thinking throughout the organization. It keeps the team within the boundaries of the right path.
  • Helps blending process – The statements help the blending process in an organization, in the sense that, when a new employee is hired, it’s critical that the new hire know what the company does and where the company is going. The statements form guides the alignment of such employee with the business owner, team members.
  • It shapes strategy – A strategy is necessary for every business. Instead of looking at what’s new or copying competitors, wise business owners create the most effective strategies possible to accomplish the mission their company is set out to accomplish.
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About the Author

Matthew King is the owner of the Startup Forums, Alkries LLC, and co-owner at TR King Insurance Marketing. Partner at Independent Life Insurance Agent Association, Medicare Training 101, and Final Expense 101. When he's not creating content about running successful businesses here. He's most likely developing processes, diving into SEO, or gaming with his friends and wife.

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