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- AuthorEric Sottile
Eric Sottile has a bacholors degree in accounting from the University of Kentucky and a bachelors degree in finance from the University of Kentucky. Eric works for a public accounting firm and has passed his CPA exams with an average score of 94.
View bio - InstructorBeth Hendricks
Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.
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Learn what an organizational vision statement is and understand its planning, purpose, and importance. Discover organizational vision statement examples.Updated: 11/21/2023
Frequently Asked Questions
What is the importance of an organization's vision?
An organization's vision is important because it provides guidance for decision making. Additionally, it attracts talent and aligns employees to the organization's long-term goals.
What is meant by a vision statement?
A vision statement is a declaration about what an organization wants to achieve. It is the ultimate long term goal of the organization.
Table of Contents
- What is a Vision Statement?
- Organizational Vision Statement Purpose
- Organizational Vision Statement Importance
- Organizational Vision Statement Examples
- Lesson Summary
A vision statement is defined as a declaration about what an organization wants to ultimately become. Vision statements focus on the long-term goals of the business. A business aim can be defined as measurable and actionable steps that can be taken toward achieving an organizational vision. Business aims are made up of different objectives. In other words, business aims are long-term steps to reach a vision, and objectives are short-term steps to reach a business aim.
Mission statements are declarations about why the organization exists. It defines the purpose of the business. It is an action-based statement describing what the firm does for its customers and why. A common mistake organizations make is mixing vision and mission statements together. However, vision statements and mission statements are very different, and it is important for businesses to clearly define both. By clearly defining both, a firm or company creates better alignment with its employees. Now employees have a clear understand of why the company does what it does, as well as have a clear understanding of where the company is headed in the long run.
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Organizational vision statements have multiple purposes. First and foremost, they provide guidance on setting strategic goals and business aims. They accomplish this by providing clarity on where the organization wants to go and what the organization wants to look like if it is successful. This clarity provides direction for the company, which may help set the proper priorities that are aligned with the vision statement.
Another purpose of the vision statement is providing guidance for employees to make better decisions that will help the company reach its vision. Additionally, if a company's vision statement is widely known or communicated with potential employees, it could help attract employees who are like-minded and hold values that the vision will reinforce. By attracting talent that supports the company's goal, the company has a much better chance of reaching that goal because employees will work harder to achieve that vision.
Finally, vision statements help an organization focus on the most important aspects of the business, including value creation for the customer, goal setting, and motivation for business activities. These purposes must be kept in mind during the vision planning process.
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A vision statement is important because it provides direction to all actions an organization takes. It is the north star of the firm. All goals are created with the intent to help the company reach its vision. All decisions are guided with the vision in mind. It communicates to stakeholders where the company is headed. However, for a vision statement to be effective and useful, it must use language that is emotional and passionate. This helps attract and motivate employees.
Additionally, the vision statement must be declared using the present tense. Painting a picture of what the company wants to be in the future, in the present, is visualization. This makes the vision appear attainable and in reach. This can increase motivation by making a large goal seem possible. Most importantly, the vision statement must be clear and concise. If a vision statement is not clear, stakeholders will be confused. There won't be alignment. Bad decisions may be made since there is no guidance. The wrong employees may be attracted to the organization, thinking the vision is one thing when really it is another.
When a vision statement is clear, it aligns all employees together and creates a clear path to guide all decision making. Everyone will know where the organization needs to go to attain its vision. This will create a strengthened culture, since everyone internally knows exactly what to work towards and supports it. This reinforcement is a powerful motivator. The vision statement should include the long-term goal of the organization, which is where the organization is headed.
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- Amazon's vision statement - ''We strive to offer our customers the lowest possible prices, the best available selection and the utmost convenience.''
- McDonald's vision statement - ''To be the best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that we make every customer in every restaurant smile.''
Amazon's vision statement is clear and concise. It is one sentence and provides clarity to stakeholders about the goal Amazon wants to achieve. It communicates that Amazon focuses on the customer by providing the customer with selection, convenience, and relatively low prices. Additionally, the goal is in the present tense. This assists in making the goal seem in reach, although it may never actually be reached.
The statement creates motivation for continuous improvement. It is also emotional and passionate by striving to be the best. This vision statement is important to Amazon because it guides all decisions by encouraging management to have the best selection, keep improving convenience for the customer, and pay attention to other company's prices. By making decisions that achieve these goals, the company will be successful.
McDonald's vision statement is clear and concise. It is two sentences, with the second sentence providing additional clarity by defining ''the best.'' This extra clarity provides focus on quality, service, cleanliness, and value. Without this extra clarification, employees may define ''the best'' in different ways. McDonald's makes it clear they want to be quick and leave the customer so satisfied they smile. The vision statement is also in the present tense. This makes the goal achievable, although it is continuous.
Their statement is also emotional and passionate by the commitment to providing the best experience for the customer that they smile. This vision statement is important because it helps align employees with McDonald's ultimate goal. Employees know to focus on speed, quality, service, and cleanliness. Without the added clarity and focus for employees, the goal will be hard to achieve because some employees may only focus on speed while others focus on quality, and none focus on cleanliness.
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A vision statement is a declaration about where the company is headed. Its purpose is to convey what the organization wants to accomplish. A vision is made of business aims, which are measurable steps toward the firm's vision. A vision statement should include what motivates business activities. It should be written clearly and concisely in the present tense and evoke emotion and passion. Mission statements are different from vision statements because they declare why the company started operations.
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Video Transcript
Henry Ford's Vision
When Henry Ford started Ford Motor Company in 1903, his vision was simple: to make automotive travel accessible to everyone. With that type of goal in mind, crafting a vision statement was easy. Ford said they wanted to ''democratize the automobile,'' or make it affordable and available for all people.
Today, Ford is a much more sophisticated company, with a more robust vision statement that reads: ''Our vision is to become the world's most trusted company, designing smart vehicles for a smart world.''
What is Ford trying to say through that vision statement? The world is a much more sophisticated place than it was 30 years ago (smart world). Ford knows that building a smart vehicle equipped with the latest technology is what sells a customer living in this world. Ford also wants to be known as a company that cares, and can back it with many charitable actions.
Vision Statements
A vision statement tells people what you want to accomplish over time and how your business can make things different through its purpose and activities. It provides the outside world with some insight about your goals and and how you want to be perceived. Vision statements are typically aspirational and inspirational in nature. They encourage your stakeholders, employees and customers to think in terms of what you're doing and where the company is headed.
Consider this vision statement from online retail giant Amazon:
''Our vision is to be Earth's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online.''
This vision statement not only tells you what Amazon hopes to be, but also, what they can offer to its customers. Even though it may not be the most customer-centric company out there right now, that's what its striving to become - the retailer where shoppers can find everything they need in one location.
Key Points
Some vision statements may be simple and modest, while others may be more lofty or complex. For example 'We want to be A leader' versus 'We want to be THE leader.' All vision statements should help an organization focus on the most important points of their business, like:
- Where you want to be in five or 10 years
- What the business's dreams and goals are
- What motivates your business activities
- How you're creating value for customers
A vision statement should be written in the present tense in clear and concise language, infused with emotion and motivating to all levels of employees. It may be one sentence or multiple sentences. A vision statement should not be confused with a mission statement, which focuses on why a business exists rather than how it sees itself moving forward, or a business aim, which is an objective or goal a business wants to achieve. Typically, aims are measurable milestones that companies achieve while fulfilling their vision. You may say you want to be Earth's most customer centric company, but what are you doing every day to achieve that? Those are the aims of your business.
Apple Vision Statement
Here's another example of a vision statement from tech company Apple:
''To make the best products on earth, and leave the world a better place than we found it.''
Short and sweet, this vision statement covers not only the great products they make, but also their commitment to charitable activities that leave the world a better place.
Lesson Summary
A company's vision statement lets people know what you want to accomplish, what your goals are and how you wish to be perceived. Companies with strong vision statements include Amazon, Apple and the Ford Motor Company. A vision statement should not be confused with a mission statement, which focuses more on why a business exists rather than where the business is headed. It is also different from a business aim, or the day-to-day measurable goals or objectives that help an organization live up to its vision.
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