Purpose, Mission, and Vision Statements (2024)

What Are Purpose, Mission, and Vision Statements?

Purpose, Mission, and Vision Statements explain why a company exists, how it plans to achieve its goals, and what the business will ultimately achieve.

A Purpose Statement is an explanation of the company’s motivations and reasons for being, and why it works the way it does.

A Mission Statement is a definition of the company’s business, who it serves, what it does, its objectives, and its approach to reaching those objectives.

A Vision Statement is a description of the desired future state of the company. An effective vision inspires the team, showing them how success will look and feel.

Usage and satisfaction among survey respondents

Purpose, Mission, and Vision Statements (1)

Purpose, Mission, and Vision Statements (2)

How Are Purpose, Mission, and Vision Statements Implemented?

Typically, senior leaders will write the company’s Purpose, Mission, and Vision Statements with inputs from the broader organization. The development process usually begins by clarifying the purpose, then defining the mission, and then painting the vision. This requires leaders to:

  • Clearly identify the corporate culture, values, strategy, and view of the future by interviewing employees, suppliers, and customers
  • Address the commitment the firm has to its key stakeholders, including customers, employees, shareholders, and communities
  • Ensure that the objectives are measurable, the approach is actionable, and the vision is achievable
  • Communicate the message in clear, simple, and precise language
  • Develop buy-in and support throughout the organization

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What Are Common Uses of Purpose, Mission, and Vision Statements?

Purpose, Mission, and Vision Statements are used both internally and externally.

They are used internally to:

  • Guide management’s thinking on strategic issues, especially during times of significant change
  • Help define performance standards
  • Inspire employees to work more productively by providing focus and common goals
  • Guide employee decision making
  • Help establish a framework for ethical behavior

They are used externally to:

  • Enlist external support
  • Create closer linkages and better communication with customers, suppliers, and alliance partners
  • Serve as a public relations tool
  • Selected references (click to expand)

    Abrahams, Jeffrey. 101 Mission Statements from Top Companies: Plus Guidelines for Writing Your Own Mission Statement. Ten Speed Press, 2007

    Blount, Sally, and Paul Leinwand. “Why Are We Here?” Harvard Business Review, November/December 2019.

    Collins, Jim, and Jerry I. Porras. “Building Your Company’s Vision.” Harvard Business Review, September/October 1996, pp. 65–77.

    Kirkpatrick, Shelley A. Build a Better Vision Statement: Extending Research with Practical Advice. Lexington Books, 2016.

    Knowles, Jonathan B., Tom Hunsaker, Hannah Grove, and Alison James. “What Is the Purpose of Your Purpose?” Harvard Business Review, March/April 2022.

    Kotter, John P., and James L. Heskett. Corporate Culture and Performance. 1992. Reprint. Free Press, 2011.

    Nanus, Burt. Visionary Leadership. Jossey-Bass, 1995.

    Quinn, Robert E., and Anjan V Thakor. The Economics of Higher Purpose: Eight Counterintuitive Steps for Creating A Purpose-Driven Organization, Berrett-Koehler Publishers, 2019.

    Raynor, Michael E. “That Vision Thing: Do We Need It?” Long Range Planning, June 1998, pp. 368–376.

Purpose, Mission, and Vision Statements (3)

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Management Tools & Trends 2023

On the 30th anniversary of our survey, managers seem surprisingly upbeat.

Purpose, Mission, and Vision Statements (2024)

FAQs

What is the purpose of the mission and vision statement? ›

Mission and vision statements are concise, inspiring statements that clearly communicate the direction and values of an organization. These statements can powerfully explain your intentions, and they can motivate your team or organization to realize an inspiring vision of the future.

What are 3 key things that your mission statement should answer? ›

Your mission statement should clearly express what your brand does, how it does it, and why the brand does it.

What are the basic questions that answer the vision and mission statement? ›

4 essential questions you need to ask about mission, vision &...
  • Purpose: Why does your company exist? What is the change you want to create in our world? ...
  • Vision: What does your company want to become? ...
  • Mission: How does your company achieve its purpose and vision? ...
  • Who are you impacting?
Apr 9, 2019

What is the litmus test for mission statement? ›

The litmus test is to replace your company's name with a competitor's name. If the statement works with the competitor's name inserted, you haven't captured the unique characteristics of the organization and need to re-work it.

What are the 3 purposes of a mission? ›

Mission and vision statements play three critical roles: (1) communicate the purpose of the organization to stakeholders, (2) inform strategy development, and (3) develop the measurable goals and objectives by which to gauge the success of the organization's strategy.

What is a purpose and mission statement? ›

A purpose statement provides the reason or reasons you exist. It is about why you exist, whereas the mission is about what you do and for whom. This distinction is often difficult to extract from strategic plans or corporate websites.

What are the four 4 main questions the mission statement asks? ›

What do we do? How do we do it? Whom do we do it for? What value are we bringing?

How do you answer vision and mission? ›

Your mission statement is what your company is doing right now, while your vision statement is what you hope to achieve in the future – where you are in this moment versus where you're going.

What are the 3 things we get from the mission statement? ›

The Bottom Line

A mission statement is a simple and brief description that encompasses the purpose of a company defining its culture, goals, and values.

What are litmus test questions? ›

In politics, a litmus test is a question asked of a potential candidate for high office, the answer to which would determine whether the nominating official would proceed with the appointment or nomination.

What is another term for litmus test? ›

litmus test (noun as in test with single indicator) Weak matches. acid test base test.

What does the litmus paper test tell us? ›

A strip of paper that is chemically treated with a dye named litmus. This strip is placed in the liquid whose pH is being determined. The use of litmus paper, which is red at any pH less than 5 and blue at any pH greater than 8, allows an inspector to determine only whether a solution is acidic or basic.

Why are the purpose vision mission and values statements so important? ›

Together, the vision, mission, and values statements provide direction for everything that happens in an organization. They keep everyone focused on where the organization is going and what it is trying to achieve.

What is the purpose of the mission statement of a project? ›

The mission confirms the benefits and value of the project. It answers the “what” and “how” question. The mission helps motivate your team to move forward, allowing each team member to own their work and decisions to support the common goal. It provides the basis for performance metrics and evaluation.

Which comes first, vision or mission? ›

The first is a statement of vision. It provides a destination for the organization. Next is a statement of mission. This is a guiding light of how to get to the destination.

What is the purpose of a mission statement in life? ›

A meaningful personal mission statement contains two basic elements. The first is what you want to do – what you want to accomplish, what contributions you want to make. The second is what you want to be – what character strengths you want to have, what qualities you want to develop.

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