The expressions Vision and Mission are used to describe the aspects of organisational purpose. These statements emphasize the organisations purpose in order to provide managers with clarity and direction to apply it within the organisation. Please note that these statements are not synonymous.
A mission statement states the main direction and purpose of an organisation. It is the foundation for the strategic planning process. It determines the standards at which the organisation aspires, to be now and in the future. The mission statement forces the board member and staff to align them around a specific agenda.
The vision statement states the values of the company, in other words, the beliefs that guide and motivate the actions of the organisation. It often includes references to products and services, customers, employees, new technology and social responsibility. This has become increasingly important over the years as the way consumers perceive a company to be can either have favourable or adverse implication.
The term vision statement is used by some organisations instead as mission statement, vision and/or value statements may also be developed alongside the mission statement.
The statement states what the organisation will be, or be perceived to be. It often includes references to products and services, customers, markets, employees, new technology and social responsibility.
The aims of a business are usually extracted from the mission statement and are used to develop the appropriate organisational objectives. Organisational and strategic aims represent the link between mission and objectives and act as a statement of intention. They tend to be positive in nature and unquantifiable, unlike objectives.
Objectives are statements of specific outcomes that are to be achieved, from the strategic to operational levels. Objectives are developed and extracted from an organisations mission statement and goals; they can be stated in financial or non-financial terms.
The conventional idea is that unless objectives are SMART (Specific Measurable Attainable Relevant Time Bound) then they are not helpful, however, some organisational objectives are important but difficult to quantify or convert into measurable terms, such as to be the leader in ones field. Milestones and indicators of achievements are essential to monitor progress of all objectives.
Employees will often consider what to expect as a result of their efforts. These rewards can be either financial or non-financial. In most instances a mix of both and non-financial rewards will be expected.
Those things that we believe to be important, and if they were not met, or respected, would cause us to be unhappy.