Many businesses invest significant time and resources in defining their vision, mission, goals, and values. The earlier this is done, the easier it is and the greater the value it brings. Unfortunately, too many companies start this work much later than they should—when the business has already "grown up" and they recognize the need for more structure. Fortunately, it's never too late, and this article serves as a starting guide for those ready to take on this crucial task.
Start with the Vision
The vision defines why the company exists. This is not about making money—that is a result—but rather the reason the company was founded in the first place. Many companies have not explicitly expressed or documented their vision, but it remains the underlying force driving the business forward.
A vision is an ideal—a picture of the world or situation the company aspires to create. It is not directly tied to the product or service offered; those come later as vehicles to build and promote the vision.
A vision, or ideal, is something we will never fully achieve, but we will “die trying.” This is what gives our work meaning and creates a sense of purpose in what we do.
A vision does not need to be unique. Many companies, organizations, and individuals can share the same vision, as it can be generic across industries, sectors, and even countries.
Example of a vision:
"We envision a world where decisions are made faster and on a better foundation."
The Mission Follows the Vision
The mission is a concretization of the vision, making it more relevant to our specific company. The mission is often referred to as the company’s societal role. It is tangible and more directly linked to how the company operates.
A mission that aligns with the vision above could be:
"We will provide decision-makers in businesses with faster access to accurate data to ensure sound and efficient decision-making processes."
A company with this mission would typically work with Big Data and AI-driven software development. In other words, the mission also defines the business idea and the type of customer value the company delivers.
For a mission to be valuable, it must be actively used. The example above clearly identifies the market segment—decision-makers in businesses. It also defines the types of products and services to be offered. Most importantly, it helps the company determine what not to do.
In business, there are countless opportunities for product development, but resources are always limited. Pursuing too many ideas can dilute the company’s focus, causing it to stray from its vision and mission.
Goals
A company’s goals are often too closely tied to its financial targets. Revenue and profit goals are necessary, but the goals aligned with vision, mission, and values should be broader and more strategic.
For example, a company might set a goal to “be publicly listed within five years.” This doesn’t specify how much the company should grow but provides a clear direction for how it should operate. Achieving this goal would require professionalizing operations and reporting to meet stock exchange requirements.
As a board member of ABAX AS, I’ve seen another type of goal at play:
"Engaged and satisfied employees."
This goal signals that employees are the company’s most important resource and provides guidance on how the company should be managed. Pursuing the vision and mission should be done in a way that fosters a positive and motivated workforce.
A company can have multiple goals—such as both of the examples above. These goals should be long-term and provide strategic direction on how the company operates in pursuit of its vision and mission.
Values
A company’s values are critical in shaping the corporate culture it wants to foster. Values define who the company wants to be and how it intends to operate.
Values must be lived daily by the leadership team. To have an impact, all major business decisions must be made in alignment with the company’s core values.
By consistently upholding its values over time, a company builds trust in its relationships with stakeholders. This reliability reassures the outside world about what to expect from the company.
The Building Blocks Are in Place – Now It’s Time to Execute
Once a company has defined its vision, mission, goals, and values, it has established why and how it operates. The next step is to translate these into concrete actions—what the company does.
Using these foundational elements, the company can develop strategies, roadmaps, organizational structures, processes, and tasks. When these are built upon a clear, well-articulated, and well-anchored vision, mission, goals, and values, they provide strong organizational alignment. This alignment ensures that everyone in the company moves in the same direction, working toward the shared vision and mission.
This can be a powerful force that drives the company’s growth, both in the short and long term.
Position and Reputation
A company’s position and reputation in the market are critical to its success. These factors are often high on the agenda in board meetings.
Position and reputation are outcomes of the company’s why, how, and what. This is why it’s essential to consider the desired market position and reputation when defining the vision, mission, goals, and values.
Everything is connected!
