Q1. Differentiate between mission statement and vision statement.
Mission statement is a formal, short written statement for the purpose of the current functioning of the company or an organisation. The actions of the organisation are guided by the mission statement. Mission statement should spell out the overall goal, provide a sense of direction and guide in decision making. Critical components that clarify each organisation’s purpose are common in case of all effective mission statements.
Mission statements often contain the following:
- Purpose and aim of the organisation.
- The organisation’s primary stakeholders: clients, stockholders, congregation etc.
- Responsibilities of the organisation towards the stake holders.
- Products and services offered.
As per Vern McGinis, a mission statement should satisfy the following points:
- Define what the company is.
- Define what the company aspires to be (Vision Statement).
- Limit to execute some ventures.
- Broad enough to allow for creative growth.
- Distinguish the company from all others.
- Serve as framework to evaluate current activities.
- State clearly so that information is understood by all.
Vision statements
To convey clearly and concisely the direction of the organisation, vision statements are coined, to be inspiring words chosen by successful leaders. One can powerfully communicate their intentions and motivate the team or organisation to realise an attractive and inspiring common vision of the future by crafting a clear mission statement and vision statement.
Vision statement also defines the organisation’s purpose, but these statements do so in terms of the organisation’s values rather than bottom line measures (values are guiding beliefs about how things should be done). This statement defines the goal of the organisation for a specified time, and spell how the mission statements are executed as per plan. The purpose and the value of an organisation are both communicated by the vision statement. In case of employees, this gives a direction about how they are expected to behave and inspires them to give their best. When shared with customers and/or stake holders, it shapes customer/stake holder’s understanding of why they should be associated with this organisation.
A vision statement is sometimes called as a future’s picture of the company. The vision statement along with the mission statement helps in strategic planning. The vision statement may apply to an entire organisation or to a single division of the company.
Let us now understand the vision statement of the huge Tata group
From the year 2004, Tata Group has the following vision statement:
“We will spread our wings far beyond India, that we will become a global group, operating in many countries, an Indian business conglomerate that is at home in the world, carrying the same sense of trust that we do today”.
