7.5. Mission and Vision
The journey towards a successful strategic position often begins with the establishment of a clear foundational purpose. When entrepreneurs launch a new business, they typically start with a fundamental reason or goal that answers the question: “What is the purpose of this business?” Even if the initial motivation is personal, such as the desire for independence, there must be a clear idea of what the business will achieve.
The vision statement is a broad and aspirational expression of what the founders aim for the business to become. It outlines the long-term impact and overarching goals of the organization without specifying the exact products or services. This statement provides a high-level view of the business’s ultimate purpose and sets a guiding framework for its future direction.
On the other hand, the mission statement translates the vision into a more practical focus. It describes how the organization intends to realize its vision by detailing the specific products or services it will offer and the target markets it will serve. While it does not constitute a detailed strategy, the mission statement provides a clear outline of the organization’s core objectives and operational focus, bridging the gap between the broad aspirations of the vision and the actionable steps needed to achieve them.
Distinguishing Between Vision and Mission Statements
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Vision ➜ Mission |
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Vision: Broad “Why do we exist?” |
Mission: Focused “How will we accomplish our vision?” |
It’s important to understand the distinction between vision and mission statements, as many companies often blur the lines between the two. For instance, Microsoft describes its mission as “to help people around the world realize their full potential.” This broad statement aligns more closely with what would typically be considered a vision statement. However, Microsoft’s actual vision statement is “to empower people through great software anytime, anyplace and on any device.” This statement, while still broad, provides a clearer sense of how Microsoft aims to fulfill its broader mission, making it a more accurate representation of a mission statement.
The distinction between these statements is crucial for strategic planning. Vision and mission statements lay the groundwork for developing a competitive strategy. Simply put, without a clear understanding of what a business aims to achieve, it’s challenging to create an effective plan. Vision and mission statements together form the foundational elements that define the purpose of the organization and guide the development of strategic objectives. They help clarify the organization’s goals and direct its efforts, making them essential components in crafting a strategy that fosters a competitive advantage.
