ORGANIZATION MISSION STATEMENT AND VISION

CONTENTS-The meaning of vision and mission statement-Features of mission statement and vision-Role of mission statement and vision in strategy formulation-Shortcomings in company vision statements-Factors affecting objective setting/formulation-Importance of mission and vision statements-Difference between vision and mission statement

THE MEANING OF ORGANIZATION VISION• DefnA vision describes or identifies where the

organization intends to be in the future.It is realistic, credible, attractive and future oriented. In general the vision describes some milestone that

the firm will reach in the future.When developing a vision statement, it should be

seen that the following questions are answered: • What do we want to do going forward? • When do we want to do it? • How do we want to do it?

FEATURES /CHARACTERISTICS OF VISION1.Any vision must be clear. it should be direct, says

something about company’s destination.2.It has to be realistic. It has to be within the

company’s ability to achieve it.3.The vision statement must be shorter. Easy to

communicate, memorize and explained clearly.4.It must reflect the uniqueness of the organization5.It must be focused. It must be specific enough to

provide managers with guidance in decision making and allocating resources

6.Alignment with organizational values and culture

SHORTCOMINGS/PROBLEMS IN SOME COMPANY VISION STATEMENTS1.Incomplete: It is short on specifics about where the

company is headed.2.Vague: It doesn’t provide much indication of whether

or how management needs to alter the company current products/market, customer and technology

3.Bland: Lacking motivational power4.Not distinctive( lacks uniqueness): some vision lacks

uniqueness in a way that it could be applied almost on any company

5.It is so broad that it really doesn’t rule out any opportunity that management might opt to pursue.

ROLE/CONTRIBUTION OF VISION IN STATEGY FORMULATION1.It provides a clue about where the

organization is heading in the future2.A vision place an organization in unique

position3.A vision plays a role in policy formulation

and implementation.

MISSION STATEMENTIt is the statement of the role by which an organization

intends to serve its stakeholders.(what is our business?).It describes what an organization does, who it serve and

what makes an organization unique.It explains the reasons for firms existence, why and where

the organization is operating and thus it provides frame work within which the strategy are formulated.

When developing a mission statement, it should be seen that the following questions are answered:

• What do we do today? • For whom do we do it? • What is the benefit?

FEATURES OF A MISSION STATEMENT1.It must be feasible and attainable2.It must be clear enough3.It has to be precise: the formulated

mission should not be too broad or too narrow

4.It must be unique and distinctive to leave an impact in everyone’s mind

5.It should be insipiring for the management, staff and society at large

ROLE OF MISSION STATEMENT IN STRATEGY FORMULATION1.It helps the organization to clarify

aspirations2.It serves as reference point3.It must decide the direction in which the

organization proceeds

IMPORTANCE OF VISION AND MISSION STATEMENT1. vision and mission statements provide unanimity of purpose to organizations and imbue the

employees with a sense of belonging and identity. Indeed, vision and mission statements are embodiments of organizational identity and carry the organizations creed and motto. For this purpose, they are also called as statements of creed.

2.Vision and mission statements spell out the context in which the organization operates and provides the employees with a tone that is to be followed in the organizational climate. Since they define the reason for existence of the organization, they are indicators of the direction in which the organization must move to actualize the goals in the vision and mission statements.

3. The vision and mission statements serve as focal points for individuals to identify themselves with the organizational processes and to give them a sense of direction while at the same time deterring those who do not wish to follow them from participating in the organization’s activities.

4. The vision and mission statements help to translate the objectives of the organization into work structures and to assign tasks to the elements in the organization that are responsible for actualizing them in practice.

5. To specify the core structure on which the organizational edifice stands and to help in the translation of objectives into actionable cost, performance, and time related measures.

6.The vision and mission statements provide a philosophy of existence to the employees, which is very crucial because as humans, we need meaning from the work to do and the vision and mission statements provide the necessary meaning for working in a particular organization.

DIFFERENCE BETWEEN VISION AND MISSION STATEMENTOrganizations summarize their goals and objectives in

mission and vision statements. Both of these serve different purposes for a company but are often confused with each other. While a mission statement describes what a company wants to do now, a vision statement outlines what a company wants to be in the future.

• The Mission Statement concentrates on the present; it defines the customer(s), critical processes and it informs you about the desired level of performance.

• The Vision Statement focuses on the future; it is a source of inspiration and motivation. Often it describes not just the future of the organization but the future of the industry or society in which the organization hopes to effect change

MISSION STATEMETN VERSUS VISION STATEMENTMISSION STATEMENT VISION STATEMENT1. A Mission statement talks about

how the firm will get to where it wants to be. It defines the purpose and primary objectives related to customer needs and team values.

2. A mission statement talks about the present leading to its future

3. It lists the broad goals for which the organization is formed. Its prime function is internal; to define the key measure or measures of the organization's success and its prime audience is the leadership, team and stockholders.

4. It answers the question, “What do we do? What makes us different?”

• A Vision statement outlines WHERE the firm want to be. Communicates both the purpose and values of the business.

• A vision statement talks about the firms future.

• It lists where the firm see itself some years from now. It inspires a firm to give its best. It shapes the understanding of the firm.

• It answers the question, “Where do we aim to be?”

MISSION VERSUS VISION STATEMENTMISSION STATEMENT VISION STATEMETN• 5. The purpose of mission

statement is to inform.What do we do today? For

whom do we do it? What is the benefit? In other words, Why we do what we do? What, For Whom and Why?

• 6.By order mission statement is first to be developed

• The purpose of vision is to insipire

Where do we want to be going forward? When do we want to reach that stage? How do we want to do it?

Vision statement is developed after mission statement

OBJECTIVES/ROLESThese are end results which an organization strive for .FEATURES OF OBJECTIVE1.Specific2.Measurable3.Attainable4.Realistic5.Time bound

FACTORS AFFECTING OBJECTIVE SETTING/FORMULATION• 1.Size of the organization: The bigger the size of the

organization makes objective setting more complex• 2.Value system of the top management: The objective setting

is effected by the value of top management, their philosophy, altitudes, aspirations and needs influence objectives

• 3.Enviromental forces: External forces affecting objective formulation include political, economic and social cultural factors

• 4.Past situation: The objective formulation process is very much affected by past situation of the organization, it serve as precedent for objective formulation.

• 5.Organizational culture: Culture refers to shared beliefs, values and norms that guide behavior. Objective formulation is affected by organization culture.