Why Should A Company Have - VISION - , - MISSION - & - VALUE - Statements

Why should a Company have "VISION", "MISSION" & "VALUE" stat...
http://www.linkedin.com/answers/management/corporate-governance...
Home
What is LinkedIn?
Join Today
Sign In
Answers Home
Advanced Answers Search
My Q&A
Ask a Question
Answer Questions
Go back to Home Page
Bhavesh K.
Experienced Business Management Professional
see all my questions
Why should a Company have "VISION", "MISSION" & "VALUE" statements. Why is it Important!
What is the ideology behind this three aspects to be included as a part of the company architecture. Why should companies have these 3 aspects? How many companies have these as their pillars on which they run their business? Why should companies adhere to them?
posted 10 months ago in Corporate Governance | Closed
Share This
Share This Question

del.icio.us
Permalink: To link to this question from your blog or site, copy and paste the URL below.
Answers (126)
John H. Chief Operating Officer at Office Furniture Group
see all my answers Best Answers in: Change Management (1)
Leaders are facing a turning point in organizational development. As industries emerges from the severe recessionary impact of the last few years pressure will be placed on organization to deliver higher volumes of sales at lower margins on the product. It is necessary for the models that have existed for years to change if they are to survive. Over the last several years customer knowledge of the supplier process has improved, placing further pressures on the supplier for higher levels of performance while at the same time expecting the best pricing the market will bear. Clients are becoming less attached to product standards and shifting towards decisions that provide perceived value at the moment of purchase. Leaders must compete in a future environment of driving volume, reducing margins and providing excellent customer service. The facades of Vision and Mission have become central thespians in the false piety we are accustomed to these days. But courageous principled Leaders sustain the practice of these tools to powerfully direct and stimulate their organizations. A vibrant Vision of the company clearly and precisely affords an understanding of what your business is all about. Establishing the elementary principles of how you are going to accomplish your Vision defines the Values of the organization. Without Values in place, the company is unable to induce clear and directional decisions based on the long-term prosperity. For the Plan to flourish, Leaders must be prepared to become walking, talking exemplifications of the companys Vision and Values. Building on the Values of the organization, a Leader should proceed to composing a Mission Statement. The Mission Statements resolve is to provide a directional beacon that shapes and guides business Strategies. Through an efficient definition of the Mission, Leadership is enabled to determine the Unifying Goals which inevitably bring strategic factions together in a comprehensive progressive resolution. The development of Visions, Values, and Missions, provides the organization with a Strategy compendium from which to create a performance based organization that creates Value for the company, its employees and customers.
Links: http://streetsmartleader.com/2011/05/15/performance-plus-planning-next-leve... http://streetsmartleader.com/2011/05/15/performance-plus-planning-next-leve... http://streetsmartleader.com/2011/05/15/performance-plus-planning-next-leve...
posted 10 months ago
NARAYAN R. Interested in Industrial Automation

see all my answers Best Answers in: Job Search (2)... see more
These are important as a means of focusing attention on the means and the ends ; a value statement reflects the means which will used to attain the ends spelt out in the mission statement. These may or may not be important when you are running a single location , small company of less than a 100 people , where the head of the business is in contact with most of the employees on a regular basis , and where the employees can directly take their cues from the way the head talks and acts.
1 of 8
5/28/2012 7:35 PM
Once you are running a multi-location , multi-culture company with thousands of employees , then I think these have their importance. As an organization , do you believe in gender equality and safety for all , are you environment conscious , against child labour , against testing on animals , ... All these can form a part of your value statement. The crucial point is that you have to walk the talk ; having only the statements is meaningless if you don't expect everyone in the organization to adhere to the principles enunciated therein. Just type in the following in google and check out the links that you get : vision mission value statement
Akash J. Sales Director-Exports at Data Care LLC

see all my answers
To start with, I hope you know how many vision statements contradict the actual company policy. Enron's Mission statement had integrity as the driving force. More than the Vision, Mission and value Statements, they need the vision, mission and value itself. Statements should follow once you have the vision, but mostly it's the other way round. In Theory, it should reflect the organizational character. However they have become more of a gibberish that I don't trust at all.
Rohit G. Business Head at Turtle Republic

see all my answers
Hi Bhavesh, A very important question which you have asked. Find my deliberation below: 1. As companies are operated by humans, most of them do not understand the meaning of such statements. 2. Even is they have one, it is more of lookup, copy, modify and paste job. 3. It is not mandated by law as necessary, hence till the level of SME's it is negligible. 4. In India, it is mandatory if the company goes for ISO Certifications. Thanks. Rohit Gupta
Shabeena A. Give me a good challenge, and ideas would reap.

see all my answers Best Answers in: Advertising (5)... see more
Vision, Mission & Value statement are needed because: 1. Could a company just float in to the future without any idea of the direction it wishes to pursue? A vision statement helps encapsulate that. 2. Mission statement is a more specific term, often hinting the specific areas or domains through which a company may realize its vision. This is important because it helps align the company with the activities it undertakes. Can a company pursue something that is against the means it wishes it adopt to pursue it? 3. Values statement defines the intrinsic expressions that drive the company's core activities. They are often based on the beliefs and the culture that manifests these beliefs. Its important for companies to define their values. These are important simply because they are like a map, and without a map, the chances of a company meandering in directions unknown are quite high. Also, companies are social beings, they dont exist in isloation - they act as entities with stakeholders in the society. These statements help the company to find thier citizenship in this society, they add accountability to their existence. Most established, reputed companies, (there can be exceptions) have these at their pillars.
KC J. Marketing Enthusiast
see all my answers Best Answers in: Public Relations (2)... see more
These are mere frames, hanging on the wall to keep the people who walk in the company premises occupied, unless implemented and followed.
Jessica B.
The reason why business owners and companies should establish vision, mission and value is because people will buy WHY you do what you do as opposed to WHAT you do!
2 of 8
5/28/2012 7:35 PM

Office Manager at The Schroeder Group, S.C., Attorneys at Law
see all my answers Best Answers in: Customer Service (1)... see more
Links: http://www.ted.com/talks/lang/eng/simon_sinek_how_great_leaders_inspire_act...
Alejandro J. V. Entrepreneur & Senior Attorney at Get Smart Legal

see all my answers
A successful road trip of a considerable distance usually requires a road map to be successful. Essentially, the same is true for any business entity to be successful. The Vision, Mission and Value statements of any organization provide its members with an understanding of "who the company is (value), what the company stands for (mission), and where the company is going (vision)." It's important because beliefs=action=results.
Frank K. Advisor and Coach for the Small Business World.

see all my answers Best Answers in: Starting Up (1)
These are essential for the success of any business in that they set the framework, the guiding principles, upon which the business is based. Guiding principles are the source of legitimate power, not those claiming power. Being truly mission and value based are necessary to keep employees in general and the company as a whole disciplined and on track with their strategies and goals. For example, as opportunities present themselves to a company, the question has to be asked, Is this opportunity within our mission? If it is, fine. If not, you probably should not pursue it. Or revise what your company is about via re-visiting your mission statement. A corporate mission is a formal statement of what the company does. It states why an organization exists and what it should be doing. The vision lays out some desired future state, or what the company would like to achieve. The values of a company state how employees should conduct themselves, how they should do business, and what kind of organization they should build to help a company achieve its mission. Values are the foundation of a companys organizational culture.
Duke Y. Internal Control Manager. CGA,Experienced FM,FA,Controller.

see all my answers Best Answers in: Economics (1)... see more
Just look at what they are really doing in their daily business.A salgon can not survive one poor company
Charles B. Business Growth Consultant

see all my answers
Companies don't need vision, mission or value statements. Consultants insist on them so they can generate more billable hours. Companies DO need to actually have a vision and understand their values if they are going to experience a fullness of success. Embracing a mission is only useful if you want to clarify your purpose to focus your strategic effort on. A company DOES NOT need to have these to just make money or maintain the status quo of what the company is today. This is evidenced by the many companies who make money but ignore their expensive Vision, Mission and Values statements as well as the companies who are just inept at executing their vision. There is almost a natural default in human behavior to work to make money every day or to maintain the status quo so, if these are the purpose behind your company, you probably have to do little to stay there. It is almost a "default" form of strategic planning. Now, if you want to change your company (including change required to just survivie), you better have clarity on strategic. Even then, you may not need the statements. Many of my small business friends do very well with a simple 3-4 word gut idea as their vision. When I help with strategic planning, I find very few organizations needing more than a 1-page strategic plan, and most of it is dedicated to a couple of pie charts or graphs showing their main goal(s).
Jim S. Helping business executives improve their team and their own performances, leading time and project management workshops
see all my answers Best Answers in: Blogging (2)... see more
I have worked as a consultant at a variety of companies (blue chip and smaller). A great deal of companies create such statements, put them into nice looking picture frames and then leave them alone for years. New members of staff join and aren't told about the exciting vision and mission workshop othe employees went on and because they rarely go to reception or the boardroom (where these statements are often displayed) they don't get what is wanted. I agree they need to be in place. However, the most vital part of all of it is that the leader continually uses these statements to direct their driving of the company. Without that it's so much empty hot air and a waste of my time and yours.
3 of 8
5/28/2012 7:35 PM
Kenneth L. Retired Aerospace Contracts Manager, MicroMentor Volunteer and Founder "Smalltofeds"
see all my answers Best Answers in: Small Business (60)... see more
Mission statements are vital. But don't stop there. In business planning a goal is an end result. It is established by strategic planning. A goal is expressed in a simple, yet precise mission statement for the enterprise. An objective is an interim step or milestone by which one measures progress toward the goal. There are usually many objectives in a business plan, hopefully measurable ones, quantitatively and in time. The goal (mission statement) and objectives are specified in the first two sections of the business plan The remainder of the plan contains the details for achieving the objectives in route to the goal, thus achieving the enterprise mission. **Keys to Success **Company Summary **Products and Services **Market Analysis Summary **Strategy and Implementation Summary **Management Summary **Financial Plan For guidance on how to complete each of the above please see the first two links below. You may also wish to download the Biz Info Library Article, "Are You Prepared to Succeed in Business" from the second vertical Box Net Reference cube in the left margin of the third link below. It is an excellent discussion of strategic vision and planning.
Links: http://www.sba.gov/smallbusinessplanner/plan/writeabusinessplan/index.html http://www.bplans.com/sample_business_plans/all_plans.cfm http://www.smalltofeds.com
Joao Paulo Marques J. If you think education is expensive, try ignorance.

see all my answers Best Answers in: Sales Techniques (2)... see more
Give them a path

John D. International Paper

see all my answers
Because the mission, vision, and value is the foundation of the company architecture, and the fabric of business culture. Companies should corporate these three matters because the intertwine to develop the business methodology. Also, small business to corporations already have this in use and can be used for benchmarking purposes. Furthermore, companies should adhere to these aspects because they are the policies, regulation, and identity.
John D. also suggests these experts on this topic: Jason A. Cassidy B. Carman A.
Russ B. Professional Photographer

see all my answers
A Vision statement is important as it provides an opportunity to define the purpose of the enterprise and an ongoing yardstick by which adherence to the purpose can be measured and maintained. The Mission statement is the vehicle by which the Vision may be interpreted and made available to the audience throughout the supply chain; importantly to customers. A Value statement enables the enterprise to specify the way in which it will engage with employees and suppliers and provides an opportunity to establish an environment for inclusive team working and ongoing business and individual development.
4 of 8
5/28/2012 7:35 PM
Marian N. Entrepreneur, Business & HR Consultant

see all my answers Best Answers in: Government Policy (2)... see more
Hi Bhavesh, I have found some of the answers to your question hilarious and laughing off my head because it is so funny and partially true. However the reasons why it is important to have a Vision and how you want to realise your vision and get to the destination which is the Mission as well as the Values which represents the culture that organisations need to live on a daily basis in order to realise and achieve the vision and objectives that they have set out is mainly to allow organisations to FOCUS on what really matters and what is of importance. The culture and practice will help determine success/high performance.
Paul A C. Life, Sales and Change Strategist

see all my answers Best Answers in: Career Management (11)... see more
Knowing where you're going with everyone going in the same direction is easier and more productive then random. Tweaking as part of the process is allowed Vision = Intended outcome written for all to see Mission = Purpose and philosophical structure for achieving it Value = Organizational Cultural adhesive glue A three legged stool offers better balance then a two legged stool How many companies have these as their pillars on which (they say) they run their business? After all is done less is done then promised. Why should companies adhere to them? As long as plastic flowers work why waste money on t real ones! I would be willing to accept honoring employees, offering value to clients and customers and being good community neighbors as a great starting place If you have to adhere (force or manipulate) organizations to do the obvious, mediocrity becomes an accepted standard. (post office)
Prashant S. IT Analyst at IBM Global Services

see all my answers
One of best Answers is given by Paul Courter, as these three are the pillars for the strength to the Employees also so that they can thrive themselves for the best.
Roberto B. Inbound Marketing, Web Design, Graphic Design,

see all my answers Best Answers in: Graphic Design (18)... see more
Its important to have a clear "philosophy" as a company and a brand because it resonates with how people buy. People buy products and patronize brands they believe in. Someone will tell you that's not true and people buy things based on "features and benefits", but that is not so. People qualify their emotional decision to buy on belief, with rationalizations in the form of features and benefits after the fact. You will find this to be very accurate when you ask people about why they bought a Mac vs a PC or an iPod vs any other MP3 player on the market. I presented a graphic designer once with the specs for a PC for Photoshop with 6 Processors16GB of RAM 5 Hard Drives totaling over 8TB and a Blu-Ray Burner all for $1200 and he still said he'd rather have an iMac at that price. Vision Mission and Value ultimately make up your company, product or brand philosophy and will effect the way your audience relates to you.
Links: http://robertoblake.com http://robertoblake.com/blog http://twitter.com/robertoblake
Karthik. B. EHS Head at Ingersoll Rand

see all my answers Best Answers in: Business Dining and Entertainment (1)... see more
Vision North star. Mission Compass Value: Rudder. Without these, Nothing works. If you want to go nowhere any road can take you. These align everyone to the organisation. If you have these established, it is easy to link to Plan and Operate and deliver results better. This also helps "WHY I DO WHAT I DO"
5 of 8
5/28/2012 7:35 PM
Claire P. Director of Measurable Marketing Projects & Marketing/Media Lecturer

see all my answers
In my view there is still a question mark around this subject because most companies just create them [badly], tick the box and then put them somewhere in a draw and forget about them. When questioned, most employees can't remember their company's own mission. Indeed in this situation it is very questionable why you should need them, because they are not used and therefore a waste of time and effort. So if you don't want to take them seriously don't do it. However, if mission, vision and values are crafted well in a collaborative and inclusive way, used, promoted and evolve over time, they are very useful in providing direction and focus, encouraging innovation within boundaries, motivating employees and creating a source of sustainable competitive advantage and therefore worth investing time in. For those interested in a deeper analysis of these 3, check out my blog entry ...
Links: http://www.measurablemarketing.eu/2011/07/why-should-company-have-mission-v...
Frank F. CEO/Bd Director IT Governance Advisor Future-Proof Strategy Keynotes Inno-Change Social Media Mktg China Advisor
see all my answers Best Answers in: Using LinkedIn (276)... see more
It establishes a code of conduct and behavior in the achievement of objectives.

Wallace J. Multimedia Producer, i3D Programmer, Acrobat 3D PDF, Android App, Virtual World & iTV Design, Kindle, Nook & Sony eBooks
These are important to communicate to your customers what you do and why... Typically all three of these objectives can be found in a company Mission Statement. Our Mission Statement (below) addresses both our Vision & our Value Proposition
Links: http://mindtaffy.com/mission.html
Cleopatra F. Political Organization Professional

Dear Bhavesh Kothari, It is said that many companies utilise the three statements in order to build up the productivity, profitability, efficiency, cooperativeness, objectives, etc..of a company. The vision is usually what the company is striving to accomplish, what it is capable of exercising in the future. It is what the company wishes to accomplish and the reason(s) why. The mission is the step needed to make the vision achieveable (the action, process,goal). The values are what is included in all the actions and communication within the company. It is generally the shared "beliefs and principles" of a company and how they work to create meaning to the vision and mission statements. Internationally, each company has their own regulations of whether or not to implement all,some, or none of the three statements defined. The three statements could be interpreted or titled differently. As a way to establish constructiveness, the guidelines for the three statements should complement each other in a clear, cohesive manner. The employees and those in other positions should understand those guidelines and comply with them to generate a more qualified environment that will lead to the success of the company's overall vision.
Links: http://www.help4nonprofits.com/NP_Bd_MissionVisionValues_Art.htm http://en.wikipedia.org/wiki/Strategic_planning
Greg A. GM: Active Technologies - GM: designhostseo.com - Technologies Columnist: Community Newspapers, Inc
see all my answers Best Answers in: Computers and Software (4)... see more
They serve as a compass to keep the company on course

Links: http://designhostseo.com http://active-technologies.com
6 of 8
5/28/2012 7:35 PM
Erica F. Social Media Optimizer, Publisher at ALC Publishing, President of Yuricon

see all my answers Best Answers in: Blogging (48)... see more
Honestly, it isn't. Most of those are lip service to good corporate citizenship and are ignored on a regular basis. It's not a bad idea to have a vision statement, but any more than 8 words, and it fails to mean anything to anyone.
Aviral S. Director at Credit Suisse

see all my answers
It is quite disheartening to see the responses here. My belief is that in any organization, if the people coming up with these statements also "walk the walk", they can be very useful. They are specially useful in larger organizations where the objectives and day-to-day activities can be linked to these statements. This allows the people on the ground to understand the "big" picture and realize that they are contributing to a larger aim. The value of that is quite high. All this is hard work, but well worth it if there is a desire in the organization and the integrity to do what one says.
Page: 1 2 3 4 5 next
Browse Categories
Management
Business Analytics Change Management Corporate Governance Labor Relations Organizational Development Administration Business Operations Business Travel Career and Education Conferences and Event Planning Finance and Accounting Financial Markets Government and Nonprofit Health Hiring and Human Resources International Law and Legal Management Marketing and Sales Nonprofit Personal Finance Product Management Professional Development Startups and Small Businesses Sustainability Technology Using LinkedIn Planning
View All
Answers Home
Help Center
About
Blog
Careers
Advertising LinkedIn Jobs
Recruiting Solutions Jobs Directory
Tools
Mobile
Developers
Publishers
Language
SlideShare Title Directory
LinkedIn Updates
LinkedIn Answers
Company Directory
Groups Directory
Skills Directory
Service Provider Directory
LinkedIn Corporation 2012
User Agreement
Privacy Policy
Copyright Policy
7 of 8
5/28/2012 7:35 PM
8 of 8
5/28/2012 7:35 PM

Why Should A Company Have - VISION - , - MISSION - & - VALUE - Statements

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Why Should A Company Have - VISION - , - MISSION - & - VALUE - Statements

Încărcat de

Drepturi de autor:

Formate disponibile

Why should a Company have "VISION", "MISSION" & "VALUE" stat...

Advanced Answers Search

Share This Question

NARAYAN R. Interested in Industrial Automation