The Mission, Vision, and Values statements

when we talk about the future strategy becomes a dynamic concept which allows top managers to define goals and objectives for the future and outline how these goals and objectives will be achieved a great way to formalize a company's purposes goals and values is to have formal mission and vision statements both are related to the main reason a company exists and help stakeholders understand and keep that reason in mind okay so the mission statement addresses the question why do we exist or what is the fundamental reason for our organization's existence and the vision statement describes the desired future position of the company and answers the questions what do we want to achieve in the future and who do we want to become when trying to define the vision statement we should include specific goals and objectives goals help companies define what they want to achieve while objectives are the specific actions and measures for attaining these goals by setting goals managers commit themselves to a concrete course of action that would allow them to accomplish the company's vision goals can target different areas like growth profitability retention efficiency or customer service usually goals are expressed as a percentage when considering financials a company's goal could be to increase revenue and decrease overheads which is stated in the following way increase revenue by 10% and decrease overheads by 5% in 2017 an example of an objective that will help you achieve a 10% increase of sales is acquiring five new customers every month reducing overheads can be achieved by finding new and less expensive office premises or maybe outsourcing activities both are specific objectives that might allow a firm to reduce its overhead by five percent another important question company should answer is how are we going to behave and what do we believe in maximizing profit is important but it is also important to uphold certain values and principles this is why most organizations have a set of values they stay behind the role of this statement is to define the firm's value and place constraints on how the organization pursues its goals this can be important for the talented individuals being recruited by the company usually they're not only interested in large compensation packages but also want to work for an employer that is socially responsible and believes in integrity and business ethics right obviously it is not hard to find a firm's mission vision and values all stakeholders can access these statements easily just open a company's website and click around you can locate them in no time all right it's time for a few practical examples let's look at the way some large corporations have stated their mission vision and value statements some firms are very specific when defining their mission statements and clearly Express why the firm exists and what kind of services it offers to build the web's most convenient secure cost-effective payment solution PayPal to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible Tesla these are the missions of PayPal and Tesla both companies have a mission statement that is laser-focused a statement that isn't ambiguous is to the point and indicates the company's main purpose but that's not always the case the mission statements of other companies show the business strategy their organization follows the two examples you see here show that Walmart and IKEA follow a cost leadership business strategy we save people money so they can live better Walmart at IKEA our vision is to create a better everyday life for the many people our business idea supports this vision by offering a wide range of well-designed functional home furnishing products at prices so low that as many people as possible will be able to afford them there is a third type of mission statement as well that is polar to what we've seen so far some companies are too vague in their mission statements and do not present the market scope of the business to be a company that inspires and fulfills your curiosity sony it is our mission to continue to authoritative ly provide access to first services to stay relevant in tomorrow's world yes not very clear right the same reasoning applies to selecting the vision statement it needs to express what the company wants to achieve the best vision statements are concise clear and inspirational here are examples of clear and memorable vision statements to provide access to the world's information in one click Google to create economic opportunity for every member of the global workforce LinkedIn and here's an example of a vision statement that is too general and hard to remember our vision services the framework for our roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable quality growth coca-cola ok that covers mission and vision statements now values let's look at the values of Facebook these are the guiding principles for the company's employees the company values are impactful dynamic bold open and socially responsible behavior these are the five values that Facebook and its employees should stand for defining these principles helps the company communicate to its employees what the organization stands behind and how it intends to do business it is interesting to see how different companies understand the world how they want to behave in it and what they want to achieve this is what we can learn by reading a firm's mission vision and value statements

Channel: 365 Financial Analyst

Views: 470,273

Keywords: mission, vision, values, corporate, statement

Id: 8wem6FZAucw

Length: 5min 58sec (358 seconds)

Published: Fri Jan 26 2018