The meaning of vision and mission characteristics of mission and vision importance of mission and vision role of mission and vision statement in strategy formulation Shortcomings in vision statement Factors affecting objective settings Difference between vision and mission statement

1. ORGANIZATION MISSION
STATEMENT AND VISION
CONTENTS
-The meaning of vision and mission statement
-Features of mission statement and vision
-Role of mission statement and vision in strategy formulation
-Shortcomings in company vision statements
-Factors affecting objective setting/formulation
-Importance of mission and vision statements
-Difference between vision and mission statement

2. THE MEANING OF ORGANIZATION
VISION
• Defn
A vision describes or identifies where the organization
intends to be in the future.
It is realistic, credible, attractive and future oriented.
In general the vision describes some milestone that
the firm will reach in the future.
When developing a vision statement, it should be
seen that the following questions are answered:
• What do we want to do going forward?
• When do we want to do it?
• How do we want to do it?

3. FEATURES /CHARACTERISTICS OF
VISION
1.Any vision must be clear. it should be direct, says
something about company’s destination.
2.It has to be realistic. It has to be within the
company’s ability to achieve it.
3.The vision statement must be shorter. Easy to
communicate, memorize and explained clearly.
4.It must reflect the uniqueness of the organization
5.It must be focused. It must be specific enough to
provide managers with guidance in decision making
and allocating resources
6.Alignment with organizational values and culture

4. SHORTCOMINGS/PROBLEMS IN SOME
COMPANY VISION STATEMENTS
1.Incomplete: It is short on specifics about where the
company is headed.
2.Vague: It doesn’t provide much indication of
whether or how management needs to alter the
company current products/market, customer and
technology
3.Bland: Lacking motivational power
4.Not distinctive( lacks uniqueness): some vision lacks
uniqueness in a way that it could be applied almost
on any company
5.It is so broad that it really doesn’t rule out any
opportunity that management might opt to pursue.

5. ROLE/CONTRIBUTION OF VISION IN
STATEGY FORMULATION
1.It provides a clue about where the organization
is heading in the future
2.A vision place an organization in unique
position
3.A vision plays a role in policy formulation and
implementation.

6. MISSION STATEMENT
It is the statement of the role by which an organization
intends to serve its stakeholders.(what is our business?).
It describes what an organization does, who it serve and
what makes an organization unique.
It explains the reasons for firms existence, why and where
the organization is operating and thus it provides frame
work within which the strategy are formulated.
When developing a mission statement, it should be
seen that the following questions are answered:
• What do we do today?
• For whom do we do it?
• What is the benefit?

7. FEATURES OF A MISSION STATEMENT
1.It must be feasible and attainable
2.It must be clear enough
3.It has to be precise: the formulated mission
should not be too broad or too narrow
4.It must be unique and distinctive to leave an
impact in everyone’s mind
5.It should be insipiring for the management, staff
and society at large

8. ROLE OF MISSION STATEMENT IN
STRATEGY FORMULATION
1.It helps the organization to clarify aspirations
2.It serves as reference point
3.It must decide the direction in which the
organization proceeds

9. IMPORTANCE OF VISION AND MISSION
STATEMENT
1. vision and mission statements provide unanimity of purpose to organizations and imbue the
employees with a sense of belonging and identity. Indeed, vision and mission statements
are embodiments of organizational identity and carry the organizations creed and motto.
For this purpose, they are also called as statements of creed.
2.Vision and mission statements spell out the context in which the organization operates and
provides the employees with a tone that is to be followed in the organizational climate.
Since they define the reason for existence of the organization, they are indicators of the
direction in which the organization must move to actualize the goals in the vision and
mission statements.
3. The vision and mission statements serve as focal points for individuals to identify
themselves with the organizational processes and to give them a sense of direction while at
the same time deterring those who do not wish to follow them from participating in the
organization’s activities.
4. The vision and mission statements help to translate the objectives of the organization into
work structures and to assign tasks to the elements in the organization that are responsible
for actualizing them in practice.
5. To specify the core structure on which the organizational edifice stands and to help in the
translation of objectives into actionable cost, performance, and time related measures.
6.The vision and mission statements provide a philosophy of existence to the employees,
which is very crucial because as humans, we need meaning from the work to do and the
vision and mission statements provide the necessary meaning for working in a particular
organization.

10. DIFFERENCE BETWEEN VISION AND
MISSION STATEMENT
Organizations summarize their goals and objectives in
mission and vision statements. Both of these serve
different purposes for a company but are often confused
with each other. While a mission statement describes
what a company wants to do now, a vision statement
outlines what a company wants to be in the future.
• The Mission Statement concentrates on the present; it
defines the customer(s), critical processes and it informs
you about the desired level of performance.
• The Vision Statement focuses on the future; it is a source
of inspiration and motivation. Often it describes not just
the future of the organization but the future of the
industry or society in which the organization hopes to
effect change

11. MISSION STATEMETN VERSUS VISION
STATEMENT
MISSION STATEMENT VISION STATEMENT
1. A Mission statement talks about
how the firm will get to where it
wants to be. It defines the purpose
and primary objectives related to
customer needs and team values.
2. A mission statement talks about
the present leading to its future
3. It lists the broad goals for which
the organization is formed. Its
prime function is internal; to
define the key measure or
measures of the organization's
success and its prime audience is
the leadership, team and
stockholders.
4. It answers the question, “What do
we do? What makes us different?”
• A Vision statement outlines
WHERE the firm want to be.
Communicates both the purpose
and values of the business.
• A vision statement talks about
the firms future.
• It lists where the firm see itself
some years from now. It inspires
a firm to give its best. It shapes
the understanding of the firm.
• It answers the question, “Where
do we aim to be?”

12. MISSION VERSUS VISION STATEMENT
MISSION STATEMENT VISION STATEMETN
• 5. The purpose of mission
statement is to inform.
What do we do today? For whom
do we do it? What is the
benefit? In other words, Why
we do what we do? What, For
Whom and Why?
• 6.By order mission statement
is first to be developed
• The purpose of vision is to
insipire
Where do we want to be going
forward? When do we want to
reach that stage? How do we
want to do it?
Vision statement is developed
after mission statement

13. These are end results which an organization strive for .
FEATURES OF OBJECTIVE
1.Specific
2.Measurable
3.Attainable
4.Realistic
5.Time bound

14. FACTORS AFFECTING OBJECTIVE
SETTING/FORMULATION
• 1.Size of the organization: The bigger the size of the
organization makes objective setting more complex
• 2.Value system of the top management: The objective setting
is effected by the value of top management, their philosophy,
altitudes, aspirations and needs influence objectives
• 3.Enviromental forces: External forces affecting objective
formulation include political, economic and social cultural
factors
• 4.Past situation: The objective formulation process is very
much affected by past situation of the organization, it serve as
precedent for objective formulation.
• 5.Organizational culture: Culture refers to shared beliefs,
values and norms that guide behavior. Objective formulation
is affected by organization culture.