A company should define what it wants to do and how it is going to be done. Peter Drucker first realized that companies need a clear guideline for conducting each operation seamlessly. From a strategic viewpoint, a company requires specific purposes according to its resource. Peter Drucker coined the term in the corporate world in 1974.
Let’s dive into all the necessary things that one should know about the mission and vision statement.
What is Mission Statement?
Mission defines a company’s core activities and purpose. Every company needs the precise direction of what to do, what to achieve, and how that’s going to happen. Mission describes the purpose and guidelines of the company.
The mission statement is a well-written document that includes the product or service of a company, target market, purpose, and goal.
A mission statement should have three key components.
- Key market
To understand more, let’s break down an actual mission statement and how it uses the key components of the mission statement.
Example of Mission statement
The mission statement of Boeing is, “We are working across the industry to enhance air travel health safeguard.”
Here are the key elements of the mission statement of ‘Boeing
Key market: Boeing has mentioned that they want to work in the whole aviation industry. The target market is the mass audience of the airline industry.
Contribution: Contribution depicts how a company solves a problem through its product or service. Boeing sets its contribution to its target audience through air travel services and products.
Distinction: Boeing outlines its distinctive features by adding that it will work for a healthy air travel experience.
How To make a mission statement more feasible?
A company should keep the following points in mind when writing a mission statement:
- Products or service
- Concern for survival growth and profitability
- Concern for public image
- Concern for public image
What is Vision Statement?
A vision statement describes what a company will be in the future. It includes the long-term commitment of the company. A vision statement showcases the aspiration behind building the company.
One can get a glimpse of the company through the vision statement.
A vision statement is “An organization’s written document about its long term goals upholding what they want to be in the future.”
A company must include the following elements in the vision statement:
- Company values
- Company direction
By analyzing a vision statement, one can understand how all the essential elements can be used and make a viable vision statement.
Example of a vision statement
The vision statement of Boeing is “People working together as a global enterprise for aerospace leadership.”
Let’s see how Boeing uses different components in its vision statement.
Futuristic: The vision statement clearly states its future goal is to become an industry leader, and it’s precise and futuristic.
Company values: Boeing emphasizes ‘People working together, which indicates the teamwork culture of the company. So the company has practised such value for creating bonding and empathy to work together.
Company direction: Boeing directed as the company aims to be a people-oriented global enterprise and global leader.
Inspiration: The inspiration of Boeing is to create a leading position in the aviation industry.
Conciseness: The vision statement has an accurate length. It’s easy to understand and precisely provides all the information.
Difference between Mission and Vision Statement
A vision statement tells what the company wants to achieve, and a mission statement tells how it accomplishes the vision. It is also necessary to put a fine line between Mission and Vision statement.
First of all, the Mission statement indicates short-term goals, whereas the vision statement indicates long-term goals.
Secondly, the mission statement answers the question ‘what’ and ‘how’, whereas the vision statement answers why.
The next major difference is mission statement can be changed under different circumstances, but the vision statement cannot be changed flexibly.
Mission statement v/s Vision statement With Table
|Shows futuristic view
|Shows a strategic view
|Directs where to go
|Directs how to go
|For a long time
|For a short time
|Especially used by the Marketing team
|Especially used operation
Why Mission and Vision Statement is important?
Before making a building, a strong foundation is essential for its longevity. Such a foundation builds upon some robust pillars. Companies also work in similar ways. The mission and Vision statement are two core pillars of a company that works as a stronghold.
- Without a mission and vision statement, the company will not be able to uphold a specific identity in the market.
- The mission and vision statement define a company’s direction.
- Companies can differentiate themselves and can create brand recognition through their mission and vision statement.
- Externally and internally, people get an overview of the company through the mission and vision statement.
- A vision statement works as an inspirational quote for the company.
- Employees get a clear-cut understanding of the company culture value..
- Employees know what to do and what not to do via the mission and vision statement.
A company can use mission and vision statements interchangeably. Above all, both have a significant role in the company’s success and identity.