Importance of mission, vision and values in business strategy
Mission, vision and core values statements are foundational elements of every company. Businesses without well-thought-out philosophies or frameworks lack direction, have weak company cultures and poor organization. Management may be unsure of what to prioritize, what kind of workers to hire and where to invest assets and human resources.
Here are some specific advantages of having mission, values and vision statements.
- Clear foundational statements can foster a positive work environment. They can help attract workers with the same values and interests as the company. These people are more likely to be passionate about their work and buy into the company’s long-term mission.
- Well-planned statements can also inform management styles within the organization. Professional values and ethical guidelines can guide personnel and disciplinary decisions and help craft workplace policies. Meanwhile, executives can make strategy, budgeting and resource allocation decisions using mission and vision statements as standards by which each is measured.
- Mission and vision statements can ensure uniform messaging. Consistency is key to building a strong company image and running effective marketing and PR campaigns.
Investors, stakeholders and other businesses will also look at these foundational statements to assess the company’s suitability for investment or partnerships.
How to create mission, vision and values statements
Regardless of the size of a company, anyone involved in starting or managing a business should be familiar with mission, vision and value statements.
Here are some parameters to keep in mind when crafting these business plan essentials:
- Be concise: Statements should be clear and brief without unnecessary language or broad terms. The statements should be memorable enough that employees, customers and managers can easily recall them.
- Be focused: It is tempting to add multiple clauses to your statements. However, focusing on a single goal or a set of closely related goals helps your statement serve its purpose of informing and guiding company actions.
- Consider the time frame: It is important to remember that mission statements are for short-term planning, while vision statements focus on the future and values need to be applicable from the start of operations.
With strong mission, values and vision statements, you can create a business plan that provides clear guidelines for operating, planning and developing your company.
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