Developing Vision, Mission and Core -Value Statements -November2020 Newsletter
To inspire an organization and bind it together with purpose and direction, business managements have developed purpose statements. They may be labeled differently in different institutions, however
in this letter we will continue to call them by their most traditional names:
Vision, Mission, and Value Statements.
Whatever they may be called, they continue to guide the behaviour of people in many organizations, large and small, around the world.
Why is it important for your business to have a Vision?…For inspiration!
The Vision Statement describes where you and your team want the business to be in a future point in time, let’s say five to ten years forward. A business without a clear vision has been described as a ship without a rudder. It sets the business in the direction that you have defined and ties the various activities, actions, and people in the organization together.
Why is it important to have a Mission?…For definition!
The Mission Statement, as opposed to the Vision Statement, describes what your business does today, the products and services it provides, how they are provided and to whom they are provided. The Mission Statement basically defines your primary purpose for being in business.
Why is it important to have a Core Value?…For setting your company’s behaviour and culture!
Developing Your Statements
Vision Statement
If you are part of a larger group, the planning process will normally involve other key persons in your organization.
The first step in the process is not to focus on the exact wording of your vision statement but instead to focus on the future you want to create. Do not let your current limitations restrict your ability to create your desired vision. This is your opportunity to be creative and innovative. Select a date in the future. Start by listing ideas of your ideal future vision. Convert those ideas into a series of bullet statements. From these you can now begin to draft your vision statement. It may take several drafts until you have developed the final statement that is inspirational and best states your future vision.
Here are some examples:
Perhaps one of the most iconic vision statements was made by John F. Kennedy in 1961: “I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth.”
In 1880, George Eastman founded Kodak with a bold vision: “to make photography as simple as using a pencil.”
Apple’s vision statement is: “We believe that we are on the face of the earth to make great products and that’s not changing.”
The above three examples are inspirational and define bold goals.
Mission Statement
The mission statement should answer four fundamental questions about the business: what, how, who and why.
1. What business are we in (the services or products we provide)?
2. How do we operate (values, technologies, competencies, capabilities}?
3. Whom do we serve (customers, stakeholders)?
4. Why do we exist (the value your business provides)?
When defining your business, avoid broad definitions that provide little direction to the organization, but also is not too limiting. If for example you are a craft brewer, defining it as a beverage business instead of a brewery will provide some scope for future diversification. Similarly, if you are in the printing business, media communications may be a better definition.
Also be clear about defining who your external customers are. They are your biggest asset. Assure them that the products and services you offer provide exceptional value.
Here are some examples:
Apple’s mission statement is: “To bringing the best user experience to its customers through its innovative hardware, software, and services.”
Through their mission statement Apple emphasizes that it exists to provide its customers the best user experience it can. Creating positive change through innovation is their principle objective.
Tesla’s mission statement is: “Accelerate the World’s Transition to Sustainable Energy.”
Tesla does not mention automobiles or even transportation in their mission statement. Instead the focus is on sustainability and the transition to green energy. This is certainly one of the more futuristic mission statements. Tesla is determined to lead the world away from traditional energy sources, responsible for climate change, to more sustainable clean energy.
Developing A Core Values Statement
Start by creating a list of values that are important to you. In a larger organization this process typically involves a larger group that must reach consensus to create the organization’s values.
Here are some examples that can be considered: integrity, honesty, trust, leadership, customer and employee commitment, innovation, humility, accountability, quality, ongoing learning, continuous improvement, Diversity, Respect
CIBC’S Core Values: Our vision comes to life through our values and our ability to demonstrate them in our everyday decisions, actions and interactions with our clients, team members, communities, and shareholders. Trust : We believe in the instincts and talents of our people. We support and recognize those who do what’s right for our clients. Teamwork: Our clients benefit from the power of a team that enjoys working together on their behalf. Accountability: We do what we say, because this is what our clients expect and deserve. If we make a mistake, we admit it and fix it.
Today’s challenges due to COVID 19 may have forced you to change the strategy and direction of your business. It may therefore be timely to re-evaluate the vision and mission and values of your business.
Hans Berger, ASE