What Are Purpose, Mission, and Vision Statements?
Purpose, Mission, and Vision Statements explain why a company exists, how it plans to achieve its goals, and what the business will ultimately achieve.
A Purpose Statement is an explanation of the company’s motivations and reasons for being, and why it works the way it does.
A Mission Statement is a definition of the company’s business, who it serves, what it does, its objectives, and its approach to reaching those objectives.
A Vision Statement is a description of the desired future state of the company. An effective vision inspires the team, showing them how success will look and feel.
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How Are Purpose, Mission, and Vision Statements Implemented?
Typically, senior leaders will write the company’s Purpose, Mission, and Vision Statements with inputs from the broader organization. The development process usually begins by clarifying the purpose, then defining the mission, and then painting the vision. This requires leaders to:
- Clearly identify the corporate culture, values, strategy, and view of the future by interviewing employees, suppliers, and customers
- Address the commitment the firm has to its key stakeholders, including customers, employees, shareholders, and communities
- Ensure that the objectives are measurable, the approach is actionable, and the vision is achievable
- Communicate the message in clear, simple, and precise language
- Develop buy-in and support throughout the organization
Related Topics
What Are Common Uses of Purpose, Mission, and Vision Statements?
Purpose, Mission, and Vision Statements are used both internally and externally.
They are used internally to:
- Guide management’s thinking on strategic issues, especially during times of significant change
- Help define performance standards
- Inspire employees to work more productively by providing focus and common goals
- Guide employee decision making
- Help establish a framework for ethical behavior
They are used externally to:
- Enlist external support
- Create closer linkages and better communication with customers, suppliers, and alliance partners
- Serve as a public relations tool
- Selected references (click to expand)
Abrahams, Jeffrey. 101 Mission Statements from Top Companies: Plus Guidelines for Writing Your Own Mission Statement. Ten Speed Press, 2007
Blount, Sally, and Paul Leinwand. “Why Are We Here?” Harvard Business Review, November/December 2019.
Collins, Jim, and Jerry I. Porras. “Building Your Company’s Vision.” Harvard Business Review, September/October 1996, pp. 65–77.
Kirkpatrick, Shelley A. Build a Better Vision Statement: Extending Research with Practical Advice. Lexington Books, 2016.
Knowles, Jonathan B., Tom Hunsaker, Hannah Grove, and Alison James. “What Is the Purpose of Your Purpose?” Harvard Business Review, March/April 2022.
Kotter, John P., and James L. Heskett. Corporate Culture and Performance. 1992. Reprint. Free Press, 2011.
Nanus, Burt. Visionary Leadership. Jossey-Bass, 1995.
Quinn, Robert E., and Anjan V Thakor. The Economics of Higher Purpose: Eight Counterintuitive Steps for Creating A Purpose-Driven Organization, Berrett-Koehler Publishers, 2019.
Raynor, Michael E. “That Vision Thing: Do We Need It?” Long Range Planning, June 1998, pp. 368–376.
Management Tools & Trends 2023
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I am an expert in business strategy, organizational development, and leadership, with extensive experience in crafting and implementing Purpose, Mission, and Vision Statements for various companies and organizations. My expertise stems from hands-on involvement in strategic planning processes, collaborating with senior leaders, and conducting comprehensive research on management principles and business strategies.
In the realm of Purpose, Mission, and Vision Statements, these foundational elements serve as guiding principles for organizations, defining their identity, aspirations, and strategies. Let's delve into the concepts mentioned in the article:
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Purpose Statement: This articulates the fundamental reason for a company's existence, its core values, and the 'why' behind its operations. It essentially communicates the organization's broader impact on society or the world.
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Mission Statement: This defines the business's primary objectives, target audience, what it does, and how it plans to achieve those objectives. It outlines the company's day-to-day operations and the strategies used to fulfill its purpose.
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Vision Statement: This paints a picture of the desired future state of the company. It inspires and aligns employees by providing a clear direction of where the organization aims to go and what it aims to achieve. An effective vision statement often motivates teams by illustrating success vividly.
The implementation process involves collaboration among senior leaders and the broader organization. It typically includes:
- Clarifying corporate culture, values, and future perspective by engaging with stakeholders like employees, suppliers, and customers.
- Establishing commitments to key stakeholders.
- Ensuring objectives are measurable, the approach is actionable, and the vision is attainable.
- Communicating the message in clear, precise language to garner support and buy-in across the organization.
These statements have dual functions, both internally and externally:
- Internal Use involves guiding strategic thinking, setting performance standards, inspiring productivity, aiding decision-making, and establishing an ethical framework.
- External Use includes enlisting external support, improving communication with customers and partners, and serving as a PR tool to portray the company's values and objectives.
The related topics encompass corporate values statements, cultural transformation, and strategic planning, all interlinked with the creation and implementation of Purpose, Mission, and Vision Statements in an organization's strategic framework.
References mentioned in the article further contribute to understanding and refining these statements, providing guidelines, case studies, and research findings on building effective Purpose, Mission, and Vision Statements to drive organizational success.
Should you need further clarification or deeper insights into these concepts, feel free to ask!
