It takes time and effort to develop business plans. You may prioritise items that you feel beneficial as a business owner with many duties. When you hear the word vision statement, you’re probably thinking of a task that many entrepreneurs dismiss as insignificant. This statement, on the other hand, is one of the most important things you can make for your company. A powerful vision statement provides a solid foundation for your company’s growth, stimulates everyone involved in it, and directs you to make good decisions that will lead to long-term success.
Employees who find their company’s vision meaningful have an average engagement score of 68%, according to Forbes, while those who don’t, have an average engagement score of approximately 18%– a significant difference! Furthermore, roughly 70% of employees have no idea what their company’s vision is. This is not only negative for engagement, but it also means that if an employee doesn’t comprehend the company’s vision, they are unlikely to understand specific goals. This makes aligning their efforts with the larger strategy very impossible.
A vision statement, unlike a mission statement, which outlines what your company does and how it differs from other companies in your industry, clarifies the direction your company is heading by outlining the outcomes you hope to attain in the near future. A vision statement essentially defines how your organisation intends to carry out its mission statement. The mission is eternal, but the vision is temporal and more concrete.
A vision statement is critical for any firm, regardless of size or industry. Why? Most significantly, it provides a sense of purpose to employees. Doing meaningful work is one of the most important drivers of employee satisfaction with a clear vision statement, employees can rally behind a common purpose that motivates them every day. A well-written vision statement should enthuse and inspire your employees about your company and the success you’ll make together in the near future.
Your organization’s strategy should be informed by your vision statement. It can be a very valuable tool for identifying your goals and objectives, as well as the tasks you choose to work on. It can also be used as a guide for making decisions at all levels, from the executive board to individual employees. Decisions made without a clear vision may not always be in line with the company’s ultimate purpose.
Finally, a vision statement can assist your business stay together in the face of adversity. Every company has challenges from time to time, and it is during these moments that people are most likely to lose sight of their common goal. Having a clear and compelling goal can motivate your personnel to keep pushing forwards in the face of obstacles.
Although there is no set format for crafting a vision statement, a common framework for effective ones includes the following characteristics:
Vision statements aren’t the work of a single person; a collaborative writing approach is more likely to produce a statement that has widespread support. Assemble a small group of people that embody your company’s beliefs and standards while also representing a range of experience and expertise. Then, using the methods below, express your vision in a clear and succinct manner.
Setting the right goals is a skill. Anyone who has done it effectively will tell you that creating goals allows them to achieve more than they ever imagined. Setting goals entails not just determining where you want to go, but also the steps necessary to get there. Consider your plan, but keep your endpoint apart from it and consider it as one aspect in forming your company’s vision.
You can create an OAS statement by answering the following questions, which will help you better express your organization’s strategy:
If you’re stuck, Locke and Latham’s goal-setting concepts might just help you get going.
Every business has values, whether they are stated or implicit. Simple one-word phrases like ‘innovation’ and ‘communication’ can be used. They can also be significantly lengthier, such as ‘universal access to education’ or ‘personalising healthcare’. You can learn that the values you want for your organisation aren’t what they are right now. This form of self-discovery is crucial and contributes to the creation of your vision. Lay up your values alongside your goals once you’ve determined the values by which you conduct business or hope to conduct business.
Consider a future world in which your company is competitive or even dominates the market. How does this world appear? Are you able to get there? What would you have to do, for example, if you wanted to double your company’s profit in five years? Would you want to be in a different part of the country? Would you sell a variety of goods or services? Would you prefer to work with your clients as a strategic partner rather than as a third-party vendor? Your vision statement should be kept in this ‘world’.
A gap analysis may be beneficial in formulating these projections. A gap analysis is a method of comparing present performance to intended performance, allowing you to see the gap between reality and target. As a consequence, you’ll have a clearer idea of where your company is having trouble—and where it has opportunity to develop.
Let’s look at two organisations that have strong vision statements that guide them, as well as what makes these vision statements so effective.
Teach for America is a non-profit organisation whose aim is to “enlist, train, and activate” great leaders to help influence education’s future. Its mission statement is as follows: ‘To achieve the reality that, one day, all children in our nation will have the opportunity to attain an excellent education.’
Tesla, founded by Elon Musk, is a for-profit electric vehicle manufacturer whose mission statement is: ‘To accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.’
In these vision statements, several qualities stand out. First and foremost, they are both succinct. Although conciseness may not appear to be necessary, being able to explain your vision in a few words makes for a more memorable – and easier to understand – statement.
Following that, both vision statements create a vivid image of how the world would be different if the organisations’ visions and aims were realised. Their viewpoints are not generic, but rather specific to the organisations.
Last but not least, both vision statements are achievable while yet being aspirational. It’s critical to strike that balance – employees must be motivated to make a difference, but they must also feel the goal(s) can be achieved. A banal vision statement, on the other hand, will not elicit the level of excitement required to achieve your desired result.
Your vision statement’s effectiveness is decided by how well it is articulated, regardless of how good it is. It’s critical to keep the vision front and centre, especially during times of change. It is the job of leaders to design a plan for communicating vision, and it is the responsibility of leaders and managers to put that strategy into action.
When you tell a good story, you bring a vision to life. An excellent storyteller builds trust, captures hearts and minds, and reminds people of the vision. Furthermore, people usually find it easier to tell a story than to discuss a vision statement.
In the length of time you have during a regular elevator journey, what captivating vision can you describe? Every leader must be able to express their vision in a concise and clear manner. Prepare to discuss it while waiting in line at the cafeteria, in the customer service department, and even while walking through a parking lot.
The more communication channels you use, the more likely your organisation will grasp the goal. Use the most up-to-date communication technology, but don’t forget about tangible swag like coffee mugs, T-shirts, baggage tags, or anything else you may think of to keep the message alive.
Personal connections allow leaders to share information, receive feedback, gain support, and generate enthusiasm for their mission. Consider your methods carefully, and attempt a variety of ways to persuade individuals based on what they find most compelling.
Vision is not fixed; it evolves with time, just as you and your company do. Use the above guidelines to write and amend your vision statement as needed.
A critical leadership skill is the ability to effectively communicate vision, which is especially important during times of change. Keep the message simple by telling stories to highlight benefits, remaining genuine and approachable, and assisting employees in reaching their own conclusions that are compatible with the company’s future goal. Employees will be better engaged and motivated to become a vital part of the change coalition if this is done.