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Importance of Vision and Mission Statement
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PREPARED BY:JOANNE ARIO BILLONES
V SION MISSI Nand
VISION AND MISSION STATEMENT
Firms with a formalized mission statement have TWICE THE AVERAGE RETURN ON SHAREHOLDERS’ EQUITY than those firms without a formalized mission statement have"Corporate Strategy: Mission Statements Make Cents“,Charles A. Rarick, John Vitton
VISION AND MISSION STATEMENT
There is a POSITIVE RELATIONSHIP BETWEEN MISSION STATEMENTS AND ORGANIZATIONAL PERFORMANCE
“The Relationship Between Mission Statements and Firm Performance:An Exploratory Study.”Christopher Kenneth Bart, Mark C. Baetz
VISION AND MISSION STATEMENTFirms with clearly communicated, widely understood, and collectively shared mission and vision have been shown to PERFORM BETTER than those without them … WHEN STRATEGY AND GOALS AND OBJECTIVES WERE ALIGNED WITH THEM
“Management Principles: Developing Mission, Vision, and Values”C. K. Bart, N. Bontis, & S. Taggar
1. Unanimity of purpose
MISSION
STATEMENTS
King & Cleland
BENEFITS
1. Unanimity of purpose
2. Basis for resource allocation MISSI
ONSTATE
MENTS
King & Cleland
BENEFITS
1. Unanimity of purpose
2. Basis for resource allocation
3. Organizational climate
MISSION
STATEMENTS
King & Cleland
BENEFITS
1. Unanimity of purpose
2. Basis for resource allocation
3. Organizational climate
MISSION
STATEMENTS
4. Focal point for individuals to identify with organization
King & Cleland
BENEFITS
1. Unanimity of purpose
2. Basis for resource allocation
3. Organizational climate
MISSION
STATEMENTS
4. Focal point for individuals to identify with organization
King & Cleland
BENEFITS
5. Specify and translate purposes into objectives
1. Unanimity of purpose
2. Basis for resource allocation
3. Organizational climate
5. Specify and translate purposes into objectives
MISSION
STATEMENTS
4. Focal point for individuals to identify with organization
6. Facilitate translation of objectives into work structure
King & Cleland
BENEFITS
RESOLUTION OF DIVERGENT VIEWS“What is our mission?”
is a genuine decision and must be based on divergent views to have a chance to be a right and effective decision
Establishing a mission should never be made on plausibility alone, should never be made fast, and should never be made painlessly.
Clear and formalized
VISION and MISSION
STATEMENT
CLARITY AMONG MEMBERS
PROVIDE BASISFOR STRATEGIC PLANNING
PROVIDE
DIRECTION PROVIDE
FOCAL POINT
RESOLVE MANAGERS’ DIVERGENT VIEWS
PROMOTE
SHARED EXPECTATIONS
PROMOTE SENSE OF
WORTH
ORGANIZED, MOTIVATED ORGANIZATION
HIGHER ORGANIZATIONAL
PERFORMANCE
ACTIVE SYNERGY
BCDFSOWRAP
BENEFITS OF
