Imagine the following scenario – every day you arrive at your company full of enthusiasm. You know where your company is heading (vision), you have a plan to get there (mission), and you have standards (values) for how the company operates. You are motivated, and you pass that energy on to your employees.
Unfortunately, not every business owner clearly defines the main pillars of their actions. Some have at least a general idea of the company’s direction thanks to a business plan. However, the importance of clearly defining a company’s vision, mission, and values is often underestimated.
So what exactly do we mean by vision, mission, and values?
These are the words leaders use to explain the purpose and direction of the company. When expressed clearly and concisely, they can motivate not only the team and the company as a whole but also customers.
What is a mission?
A mission defines the purpose of the business and its main objectives. It is formulated in the present tense and explains why the company exists, both to internal team members and to people outside the organization. Mission statements are usually short, clear, and powerful.
What is a vision?
A vision defines the company’s purpose, focuses on its goals and future aspirations, and should be uplifting and inspiring. It is also often timeless – even if the company changes its strategy, the aspirations typically remains the same.
What are values?
Values form the foundation of both vision and mission and represent the core beliefs or the “DNA” of the company. They are the standards by which the business owner wants to run the company.
Why are a company’s mission, vision, and values important?
Mission, vision, and values play a crucial role within an organization:
- They define the company’s purpose and create a sense of belonging and shared identity among employees. This motivates them to work diligently toward achieving success.
- They provide the right mindset for business development. The mission sets the direction the organization should follow, while the vision sets the goal to be reached by following that direction. Values help inform employees and customers about what the company stands for and what they can expect from it.
- They are valuable for recruitment and employee retention. Everyone in the company must understand the mission, vision, and values.
- They help align the company’s resources toward achieving a successful future. The mission provides clear and effective guidance for decision-making, while the vision ensures that all decisions are aligned with what the organization wants to achieve.
- They ensure everyone is working toward the same goal. This helps increase the company’s efficiency and productivity.
How to create a mission, formulate a vision, and define company values
Define the company’s goal
Before writing a mission, vision, and values, you should be fully aware of your company’s goal(s). The company’s goal should stem from its core values and corporate philosophy.
Identify your strengths
To become successful, you need to know your strengths. Understanding your strengths allows you to improve further and gain a clearer vision for your company. Based on this, you can set additional objectives.
Determine your values
Company values must be based on truth. Using empty words can undermine your company and its brand. If they are not grounded in reality, you risk high turnover. It is unlikely that you will retain customers and employees long-term in an environment that does not match what you have promised.
Choose the right words
Now that you know your company’s goal and strengths, you can formulate the mission, vision, and a set of values. These must be specific, measurable, achievable, relevant, and time-bound. Conciseness, simplicity, and memorability are also important.
