CBMEC 1/CBME 102-Strategic Management Jhonniño A.

Serdenia, MBA, CHRA

The Power of Purpose

Learning Objectives:
At the end of this module, you should be able to, to wit:
1. Describe what is a vision statement;
2. Understand what is the purpose of a mission statement;
3. Distinguish the vision statement from the mission statement; and
4. Define the core value.

I. The Vision Statement

A vision statement almost sounds mystical. But it’s not supernatural, far from it. Rather, a
vision statement is a foundational business document.

There is a lot paperwork that clutters the office of any organization, but the vision statement
is unique from the rest. Often confused with a mission statement, the vision statement has a
different purpose. A vision statement looks towards the future, but a mission statement talks
about what the company is doing in the present.

Because the vision statement is a foundational document that will guide the company’s
direction for years to come, consider using project planning tools and brainstorming
techniques to get input from everyone on the team. That way, you’ll get greater buy-in from
the company, and you’ll widen your net for collecting ideas.

A vision statement is a document that states the current and future objectives of an
organization. The vision statement is intended as a guide to help the organization make
decisions that align with its philosophy and declared set of goals. It can be thought of as a
roadmap to where the company wants to be within a certain timeframe. A vision statement is
not only used in business, as nonprofits and governmental offices also use them to set goals.

Vision statements are not necessarily set in stone. They can be returned to, reviewed and
revised as necessary. Any changes should be minimal, however, because a vision statement
should have been given a great deal of thought before being finalized.

A vision statement doesn’t have any particular length. It can be as short as an aspirational
sentence or pages long, depending on how much detail you want to give it. However long it
is, the vision statement is formally written and is used as reference in company documents to
serve as a guide for actions now and in the future. (Ray, 2018)

Characteristics of a Vision Statement

 Should answer the basic question – “What do we want to become?”
 Established at the beginning
 Must be short, preferably one sentence
 Vivid

II. Best Practices for Writing a Vision Statement

There is no template to writing a vision statement, however a common structure for

successful ones includes these traits:

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CBMEC 1/CBME 102-Strategic Management Jhonniño A. Serdenia, MBA, CHRA

 Be Concise: This is not the place to stuff a document with fluff statements. It should
be simple, easy to read and cut to the essentials, so that it can be set to memory and be
repeated accurately.
 Be Clear: A good rule of thumb for clarity is to focus on one primary goal, rather than
trying to fill the document with a scattering of ideas. One clear objective is also easier
to focus on and achieve.
 Have a Time Horizon: A time horizon is simply a fixed point in the future when you
will achieve and evaluate your vision statement. Define that time.
 Make it Future-Oriented: Again, the vision statement is not what the company is
presently engaged in but rather a future objective where the company plans to be.
 Be Stable: The vision statement is a long-term goal that should, ideally, not be
affected by the market or technological changes.
 Be Challenging: That said, you don’t want to be timid in setting your goals. Your
objective shouldn’t be too easy to achieve, but also it shouldn’t be so unrealistic as to
be discarded.
 Be Abstract: The vision statement should be general enough to capture the
organization’s interests and strategic direction.
 Be Inspiring: Live up to the title of the document, and create something that will rally
the troops and be desirable as a goal for all those involved in the organization.

Figure 1. Example of an Evaluation Sheet for a Vision Statement

III. Examples of Great Vision Statements

These examples prove that a vision statement isn’t a templated document that only differs
from another organizations by the branded logo on top of it.

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CBMEC 1/CBME 102-Strategic Management Jhonniño A. Serdenia, MBA, CHRA

IKEA
“Our vision is to create a better everyday life for many people.” That’s aspirational, short and
to the point. More than that, it sets the tone for the company and makes it clear that they’re in
the market to offer low-priced good furnishings that suit everyone’s lifestyle.

Nike
“Bring inspiration and innovation to every athlete* in the world. (*If you have a body, you
are an athlete.)” Nobody cared much for sneakers in the past. They were just another piece of
sports equipment. But Nike saw a future that had not yet existed, in which they delivered
products that inspired and motivated people. Notice how they include everyone as an athlete.
It’s clever and inclusive.

McDonald’s
“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.” The power of this vision is that it’s constructed like a checklist. The word
best is a word that requires definition, and McDonald’s provides it with qualifiers, making the
roadmap to success clearly marked with signposts.

Patagonia
“Build the best product, cause no unnecessary harm, use business to inspire and implement
solutions to the environmental crisis.” Talk about inspiring, Patagonia first outlines a product
vision of what the best product means for them as a company. Then takes it one step further
by stating they’ll run their business to carry that environmental policy to a global level.

Oxfam
“A world without poverty.” This may seem to contradict one of the traits of a good vision
statement in that it feels unrealistic. But as challenging visions go, it’s hard to see how
anyone wouldn’t be inspired and motivated by this short and powerful one. (Ray, 2018)

IV. Mission Statement

A mission statement is a statement of the purpose of an organisation. The mission statement
should guide the actions of the organisation, spell out its overall goal, provide a path and
guide decision-making. It provides the framework or context within which the company’s
strategies are formulated.

Mission statement is a document that communicates the corporate philosophy, identity and
image to members of the organisation. It helps the society to know what the organisation is.
A mission statement must, therefore, have the following features:
 Mission should be clear so that it is easily understood.
 It specifies purpose and goals of the organisation.
 It should have achievable standards; neither too high nor too low.
 It should be precise; neither too narrow to limit organisation’s activities nor too broad
to make it vague.
 It does not look after interests of the shareholders only, but all its stakeholders;
customers, employees, suppliers, distributors, competitors, labour unions, community
at large. Mission of the organisation is achieved by framing goals of the organisation.

According to Prof. Chris Bart, commercial mission statement of an organization consists of 3

components:

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CBMEC 1/CBME 102-Strategic Management Jhonniño A. Serdenia, MBA, CHRA

1. Key market: Who is your target client/customer?

2. Contribution: What product or service do you provide to that client?
3. Distinction: What makes your product or service unique so that the client would
choose you? (Tanuja, n.d)

Mission Statement of McDonalds To provide the fast food customer food

prepared in the same high-quality manner
world-wide that is tasty, reasonably priced
& delivered consistently in a low-key decor
and friendly atmosphere.
Key market Fast-food customers across the world.
Contribution High quality food that is tasty and
reasonably priced.
Distinction Consistent delivery of food is a low-key
decor and friendly atmosphere.

Figure 2. Example of a Mission Statement with the 3 Components

V. Characteristics of a Mission Statement

Mission statements are as varied as individual companies, but the really outstanding ones do
have certain characteristics in common:

1. They are short and punchy

A mission statement shouldn't be an essay. You'll have better luck aligning your employees
when they can remember what your mission statement actually is, instead of recalling it
merely as a wall of words on a sign somewhere. Likewise, it should not be written in
corporate jargon. Gee Ranasinha, CEO of marketing firm Kexino, puts it this way: "Mission
statements need to be written using words and sentences that 'normal' people use and
understand."

Casual dining giant Darden Restaurants has truly mastered the art of brevity. Its mission
statement: "To nourish and delight everyone we serve." Darden saves a deeper dive into their
company's values for their employee page, on which they go into much more detail.

2. They start with an action verb

It's helpful to read a few online lists of the very best mission statements. For instance, in this
list you'll notice that most of the statements have an action word at the beginning of the
statement. After the word "To..." you see such words as "inspire," "create," "reinvent," "give"
and so on. Although there are variations in which some companies describe what they are
going to "be" rather than what they're going to "do," the majority use very active phrasing.

3. They are specific

Your mission statement should reflect the specific nature of your business and define your
company culture and character. Check out two different statements, demonstrating this point.
Here's an example: "Deliver to customers and employees." Would you be able to tell what
kind of product this company is selling? Now compare the first example with, "To discover,
develop and deliver innovative medicines that help patients prevail over serious diseases."
This statement, from Bristol-Myers Squibb Company, tells you precisely what the company
does.

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CBMEC 1/CBME 102-Strategic Management Jhonniño A. Serdenia, MBA, CHRA

4. They are directed both inside and outside

Here's an example of a statement that's only inner-directed: "The company's primary
objective is to maximize long-term stockholder value, while adhering to the laws of the
jurisdictions in which it operates and at all times observing the highest ethical standards."
Would this persuade you to become a customer? They are actually a dairy product
wholesaler, but their mission statement is almost solely directed at their own staff and
stockholders.

In contrast, Patagonia's statement is addressed to everyone on the outside as well as on the

inside: "Build the best product, cause no unnecessary harm, use business to inspire and
implement solutions to the environmental crisis." Customers will gain confidence when they
read this statement, while employee motivation will be strengthened by the clear articulation
of goals.

5. They are revisited every few years

Mission statements must grow with the company. Regardless of how carefully you plan the
path of your business, the passage of years will inevitably bring evolution. In order to keep
your company's mission statement absolutely relevant, it should be reevaluated every few
years. While you may not need to entirely rewrite it, companies often find that it's necessary
to add something to a mission statement as they move forward with development.

Starbucks provides a great example of corporate evolution. In the beginning, their mission
statement was, "To establish Starbucks as the premier purveyor of the finest coffees in the
world while maintaining our uncompromising principles as we grow." Nothing wrong with
that -- but as they grew, they wanted to express something more. Their current mission: "To
inspire and nurture the human spirit - one person, one cup and one neighborhood at a time."
Clearly this illustrates a shift in the company culture, and would be noticed by customers as
well as by employees. (Wong, 2020)

VI. Company Values

Company values (or core values) are the fundamental beliefs your team holds. They are your
guiding principles that help your team work better together towards common goals.

Values are essential to build a strong company culture, align your team, and help them make
the right decisions. However, execution is even more critical here. No matter how great your
company values sound, first of all, live by them lead with an example, put them before profit,
and never compromise.

Don't forget to recognize your team members for embracing the company values. Other team
members will follow, and you'll create a robust and long-lasting organization.

VII. Importance of Company Values

1. Help team make decisions
Good values help your employees guide every decision in the organization. Each project or
activity should stand the values test. In other words, when asked, "Do we live by our values
by making these actions (or avoiding these decisions)?".

Having clear values helps your team members know what do you stand for, what is the
organizational "WHY." What actions are encouraged and what should be avoided. This is
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CBMEC 1/CBME 102-Strategic Management Jhonniño A. Serdenia, MBA, CHRA

especially true in difficult times. In the VUCA world, with a lot of environmental, social,
technological, privacy challenges, constant guidance is vital.

2. Align your team

It's easier to communicate the bigger purpose with shared values. It increases team alignment,
reduces waste and ineffective decisions, and thus improves the performance.

Teams without shared company values have inconsistent communication, which causes
confusion and insecurity. Define clear company values, be consistent in the communication,
and align your team.

3. Improve motivation
Teams with explicit values and mission are more engaged and motivated. When you know
what your values are, you know which behavior is encouraged. Then it's easier for you to
understand what is required of you. You feel more secure and motivated to work towards
common goals in the environment of psychological safety.

4. Communicate principles to customers

Customers chose companies that share their values. Core values help educate customers and
help them understand what your organization stands for. In that case, they will associate
themselves not just with your company, but with the higher purpose you translate. Such
customers are much more loyal and will spread the word about you and your cause.

5. Hire the right people

Clear values help make sure new people will be a good organizational fit. Core values play an
essential role in attracting, recruiting, and retaining talented professionals.

Remote and distribute work make it easier than ever to work from any place in the world. So
candidates compare your company with the global players, not only local. And core values
are one of the crucial methods to communicate your brand and attract the right people.