Mission, Vision and Values
Creating a Mission, Vision and Value statement provides companies with a framework of how to operate. The Society of Human Resource Management provides a pretty good outline of the concept,
A mission statement explains the company’s (or department’s) reason for existence. It describes the company (or department), what it does and its overall intention. The mission statement supports the vision and serves to communicate purpose and direction to employees, customers, vendors and other stakeholders. The mission can change to reflect a company’s (or department’s) priorities and methods to accomplish its vision.
A vision statement describes the organization as it would appear in a future successful state. When developing a vision statement, try to answer this question: If the organization were to achieve all of its strategic goals, what would it look like 10 years from now? An effective vision statement is inspirational and aspirational. It creates a mental image of the future state that the organization wishes to achieve. A vision statement should challenge and inspire employees.
A values statement describes what the organization believes in and how it will behave. Not all organizations create or are able to uphold a values statement. In a values-led company, the values create a moral compass for the company and its employees. This compass guides decision-making and establishes a standard that actions can be assessed against. A values statement defines the deeply held beliefs and principles of the organizational culture. These core values are an internalized framework that is shared and acted on by leadership.
It isn’t natural to think in these terms when it comes to your personal finance world, but I think there is value in doing the exercise.
- A vision statement describes what you want to achieve in the future.
- The vision statement answers the question “Where do I want to be?”
- It defines the optimal desired future state—the mental picture—of what you want to achieve over time, say in five, ten or more years.
- It inspires you to give your best and shapes your understanding of why you are doing what you do.