Mission statement vs. vision statement

Mission statements define an organization’s core values, purpose, function, and objectives. They tend to focus on how the organization should act on a daily basis.

Vision statements detail where or what the organization aspires to be in the context of its community, industry, or society in general.

AspectMission StatementsVision Statements
DefinitionDefine the organization’s core values, purpose, function, and objectives, focusing on daily actions.Describe the organization’s long-term aspirations, emphasizing the “why” and societal impact.
FocusPresent-oriented, addressing the “what” and “how” of the organization.Future-oriented, focusing on the “why” behind the organization’s actions and desired impact.
AudiencePrimarily targeted at consumers and external stakeholders.Primarily directed toward internal stakeholders and employees.
TimeframeShort-term goals and objectives.Long-term goals and aspirations.
SpecificityDetailed, outlining current activities, values, and objectives.Broad and aspirational, articulating the desired societal impact and change.
ContentEmphasizes functions, values, and core activities.Highlights broader purpose, future impact, and societal benefits.
Revision FrequencyMay be revised more frequently to adapt to changing objectives.Typically more stable and changed less often as it represents long-term aspirations.
Importance for Organizations– Aligns individuals within the organization towards common goals. – Needs periodic revision as objectives are met. – A weak or absent mission can demotivate employees and lead to productivity loss.– Encourages the organization to reflect on its future hopes and aspirations. – Probes who the organization seeks to inspire and which societal problems it wishes to address. – A weak or absent vision can stagnate an organization, leading to demotivation.

Understanding mission statements

Mission statements are action-orientated and clarify the purpose of an organization with respect to its audience. They may include a brief description of the organization or details of its functions, objectives, core values, and purpose.

Mission statements define the “what” and the “how” of a company and often serve as the basis for the strategy that will enable the organization to realize its vision.

In general, they are public-facing statements designed for the consumer – but they may also be used to drive employee policies and streamline internal decision-making. 

Robust mission statements advance those within the organization toward a common goal. They will also need to be revised periodically with new objectives as the objectives in the current statement are ticked off.

Conversely, weak mission statements – or indeed no mission statement whatsoever – has the opposite effect.

Employees are unmotivated and directionless which leads to a loss of productivity.

By extension, the organization itself may jump from one idea to the next according to whatever is trendy but its disjointed and misaligned efforts will invariably fail.

Disney mission statement example

The Walt Disney Company’s mission is “to entertain, inform and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative technologies that make ours the world’s premier entertainment company.

Understanding vision statements

Where mission statements are the “what” and the “how” of a company, vision statements are the “why”.

In other words, what is the meaning behind the company’s actions? What is the “why” that motivates it to act in a certain way?

Unlike mission statements which clarify what the organization is currently doing to reach its goals, vision statements describe where the company wants to be in the future.

The aspirational nature of a vision means there is a focus on employees and other relevant stakeholders as opposed to consumers.

Vision statements encourage the organization to answer the following questions:

  • What are our future hopes and dreams?
  • Who are we inspiring to change?
  • What is a problem we are solving with societal benefits?

These statements encourage internal and external growth and provide clarity on what matters in a business and what success looks like.

Like mission statements, however, a poor or non-existent vision statement means the organization is going nowhere fast. These businesses tend to be stagnant, unmotivated, and uninspired.

Vision statement examples

  1. IKEA – “To create a better everyday life for the many people.
  2. Samsung – “Inspire the world, create the future.”
  3. Oxfam – “A just and sustainable world without the inequalities that keep people in poverty.

Key Similarities between Mission Statements and Vision Statements:

  • Strategic Purpose: Both mission statements and vision statements serve a strategic purpose for an organization. They help define the organization’s goals, values, and purpose.
  • Forward-Looking: Both statements are forward-looking and guide the organization towards its future objectives and aspirations.
  • Internal and External Communication: Both mission and vision statements are used for communication purposes, both internally within the organization and externally to stakeholders, customers, and the public.
  • Influence on Decision-Making: Both statements influence decision-making within the organization, helping align actions and strategies with the overall purpose and direction.
  • Motivational: Well-crafted mission and vision statements can be motivating for employees, instilling a sense of purpose and direction.

Key Differences between Mission Statements and Vision Statements:

  • Focus and Scope: Mission statements focus on the present and define the organization’s current purpose, function, and values, answering the questions “what” and “how.” Vision statements, on the other hand, focus on the future and articulate the organization’s long-term aspirations and goals, answering the question “why.”
  • Audience: Mission statements are primarily directed towards consumers, clients, and the public. They describe the organization’s actions and purpose to these external stakeholders. Vision statements, on the other hand, have a more internal focus and are often directed towards employees and relevant stakeholders, inspiring and motivating them.
  • Time Horizon: Mission statements tend to have a shorter time horizon and are more actionable for daily operations and decision-making. Vision statements have a longer time horizon and provide a sense of direction for the organization’s future development.
  • Specificity: Mission statements are usually more specific and detail-oriented, outlining the organization’s current activities and objectives. Vision statements are more broad and aspirational, articulating the desired impact and societal benefits the organization aims to achieve.
  • Content: Mission statements typically include information about the organization’s functions, values, target audience, and core activities. Vision statements, on the other hand, focus on the organization’s broader purpose, future impact, and the change it aims to bring to the world.
  • Revision Frequency: Mission statements may be revised more frequently to adapt to changing market conditions, customer needs, or organizational goals. Vision statements are usually more stable and change less often, as they represent the long-term aspirations and values of the organization.

Case Studies

Mission Statements:

  • Nike: “To bring inspiration and innovation to every athlete in the world.”
  • Starbucks: “To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.”
  • LinkedIn: “To connect the world’s professionals to make them more productive and successful.”
  • Tesla: “To accelerate the world’s transition to sustainable energy.”
  • Airbnb: “To help create a world where you can belong anywhere.”
  • Spotify: “To unlock the potential of human creativity—by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by it.”
  • Coca-Cola: “To refresh the world, to inspire moments of optimism and happiness, and to create value and make a difference.”
  • UNICEF: “To advocate for the protection of children’s rights, to help meet their basic needs and to expand their opportunities to reach their full potential.”

Vision Statements:

  • Microsoft: “To empower every person and every organization on the planet to achieve more.”
  • Amazon: “To be Earth’s most customer-centric company.”
  • PepsiCo: “Be the global leader in convenient foods and beverages by Winning with Purpose.”
  • Google: “To organize the world’s information and make it universally accessible and useful.”
  • Ford: “To become the world’s most trusted company, designing smart vehicles for a smart world.”
  • Netflix: “To entertain the world. Whatever your taste, and no matter where you live, we give you access to best-in-class TV shows, movies, and documentaries.”
  • American Red Cross: “To prevent and alleviate human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors.”
  • McDonald’s: “To be the best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.”

Key takeaways:

  • Mission statements define an organization’s core values, purpose, function, and objectives and focus on how the organization should act daily. Vision statements detail where or what the organization aspires to be in the context of its community, industry, or society in general.
  • Mission statements define the “what” and the “how” of a company and often serve as the basis for the strategy that will enable the organization to realize its vision.
  • Vision statements are more focused on the “why”. In other words, what is the meaning behind the company’s actions? What is the important problem it is solving that has positive implications for society?

Key Highlights

  • Mission Statements:
    • Define core values, purpose, function, and objectives.
    • Action-oriented, addressing the “what” and “how” of an organization.
    • Form the basis for strategies to achieve the organization’s vision.
    • Mainly target consumers but also guide internal decision-making.
    • Example: Walt Disney’s mission is to entertain and inspire through unparalleled storytelling.
  • Vision Statements:
    • Describe the organization’s future aspirations.
    • Focused on the “why” behind an organization’s actions.
    • Address societal benefits and changes the organization aims to achieve.
    • Primarily focus on internal stakeholders and employees.
    • Example: IKEA envisions a better everyday life for many people.
  • Similarities Between Mission and Vision:
    • Both provide strategic direction.
    • Have a forward-looking perspective.
    • Used for both internal and external communication.
    • Influence organizational decisions.
    • Can inspire and motivate employees.
  • Differences Between Mission and Vision:
    • Focus: Mission addresses the present; Vision targets the future.
    • Audience: Mission speaks to consumers; Vision to internal stakeholders.
    • Timeframe: Mission is short-term; Vision is long-term.
    • Specificity: Mission is detailed; Vision is broad and aspirational.
    • Content: Mission highlights functions; Vision emphasizes broader purpose.
    • Revision: Mission can change more often; Vision remains relatively stable.
  • Importance of Robust Mission Statements:
    • Aligns individuals within the organization towards common goals.
    • Needs periodic revision as objectives are met.
    • A weak or absent mission can demotivate employees and lead to productivity loss.
    • Organizations without a clear mission often pursue trendy ideas without success.
  • Significance of Vision Statements:
    • Encourages the organization to reflect on its future hopes and aspirations.
    • Probes who the organization seeks to inspire and which societal problems it wishes to address.
    • A weak or absent vision can stagnate an organization, leading to demotivation.
  • Examples of Vision Statements:
    • Samsung envisions inspiring the world and creating the future.
    • Oxfam’s vision is a just and sustainable world without poverty.
  • Strategic Purpose:
    • Both mission and vision serve as strategic anchors for an organization.
    • They clarify goals, values, and organizational purpose.
  • Influence on Decision Making:
    • Both statements play a role in shaping decisions within the organization.
    • They help align actions with the organization’s purpose and direction.
  • Motivational Aspect:
    • Well-crafted mission and vision statements can instill a sense of purpose.
    • They offer direction and motivation for employees.
  • Relevance to Stakeholders:
    • Both statements communicate the organization’s intentions to stakeholders.
    • They can be used to attract customers, investors, and potential employees.
  • Concise Takeaway:
    • Mission statements detail daily actions and objectives, focusing on the “what” and “how”.
    • Vision statements set long-term aspirations, emphasizing the “why” and societal impact.
Company: Apple Inc.Mission Statement: “To bring the best user experience to its customers through innovative hardware, software, and services.”Vision Statement: “To make a contribution to the world by creating advanced technology that empowers individuals and enriches their lives.”
Company: GoogleMission Statement: “To organize the world’s information and make it universally accessible and useful.”Vision Statement: “To provide access to the world’s information in one click.”
Company: AmazonMission Statement: “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.”Vision Statement: “To be the world’s most customer-centric company, where customers can find, discover, and buy anything online.”
Company: MicrosoftMission Statement: “To empower every person and every organization on the planet to achieve more.”Vision Statement: “To help people and businesses throughout the world realize their full potential.”
Company: FacebookMission Statement: “To give people the power to build community and bring the world closer together.”Vision Statement: “To create a world where people can share and connect, and bring communities closer together.”
Company: TeslaMission Statement: “To accelerate the world’s transition to sustainable energy.”Vision Statement: “To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.”
Company: TwitterMission Statement: “To give everyone the power to create and share ideas and information instantly, without barriers.”Vision Statement: “To be the world’s most influential information network.”
Company: IntelMission Statement: “To deliver breakthrough technologies for a better life and a better world.”Vision Statement: “If it’s smart and connected, it’s best with Intel.”
Company: Adobe SystemsMission Statement: “To change the world through digital experiences.”Vision Statement: “Our vision is to make, manage, measure, and mobilize content that shifts industries and even shapes society.”
Company: IBMMission Statement: “To lead in the creation, development, and manufacture of the industry’s most advanced information technologies, including computer systems, software, networking systems, storage devices, and microelectronics.”Vision Statement: “To be the world’s most innovative company, creating smarter technologies that enrich and simplify people’s lives and drive economic growth.”
Company: NetflixMission Statement: “We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact.”Vision Statement: “Becoming the best global entertainment distribution service.”

Read Next: Mission Statement, Personal Mission Statement.

Related Strategy Concepts: Go-To-Market StrategyMarketing StrategyBusiness ModelsTech Business ModelsJobs-To-Be DoneDesign ThinkingLean Startup CanvasValue ChainValue Proposition CanvasBalanced ScorecardBusiness Model CanvasSWOT AnalysisGrowth HackingBundlingUnbundlingBootstrappingVenture CapitalPorter’s Five ForcesPorter’s Generic StrategiesPorter’s Five ForcesPESTEL AnalysisSWOTPorter’s Diamond ModelAnsoffTechnology Adoption CurveTOWSSOARBalanced ScorecardOKRAgile MethodologyValue PropositionVTDF FrameworkBCG MatrixGE McKinsey MatrixKotter’s 8-Step Change Model.

Mission Statement Case Studies

Adidas Mission Statement

adidas-mission-statement
Adidas’ mission is “To be the best sports brand in the world.” Adidas AG is a German multinational initially founded in 1924 by Adolf Dassler who developed spiked running shoes out of his mother’s house. Today, the company is the largest sportswear producer in Europe and the second largest globally behind rival Nike.

Uber Mission Statement

uber-mission-statement
Uber’s mission statement is to ignite opportunity by setting the world in motion.

Tesla Mission Statement

tesla-vision-statement-mission-statement
Tesla’s vision is to “create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles,” while its mission is “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” Tesla used a transitional business model as its ecosystem grows.

Amazon Mission Statement

amazon-vision-statement-mission-statement (1)
Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” 

Apple Mission Statement

apple-mission-statement-vision-statement
Apple’s mission is “to bring the best user experience to its customers through its innovative hardware, software, and services.” And in a manifesto dated 2019 Tim Cook set the vision specified as “We believe that we are on the face of the earth to make great products and that’s not changing.”

Netflix Mission Statement

netflix-vision-statement-mission-statement
Netflix’s core mission, strategy, and vision are that of “improving its members’ experience by expanding the streaming content with a focus on a programming mix of content that delights members and attracts new members.”

Coca-Cola Mission Statement

coca-cola-vision-statement-mission-statement
Coca-Cola’s Purpose is to “refresh the world. make a difference.” Its vision and mission are to “craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in people’s lives, communities, and our planet.”

Starbucks Mission Statement

starbucks-mission-statement-vision-statement
Starbucks highlights its mission as “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”

Microsoft Mission Statement

microsoft-mission-statement
Microsoft’s mission is to empower every person and every organization on the planet to achieve more. With over $110 billion in revenues in 2018, Office Products and Windows are still the main products. Yet the company also operates in Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and more.

Walmart Mission Statement

walmart-vision-statement-mission-statement
Walmart’smission can be summarized as “helping people around the world save money and live better – anytime and anywhere – in retail stores and through eCommerce.” While its vision is to “make every day easier for busy families.” Walmart defines “busy families” as the bull’s eye of its business strategy.

Nike Mission Statement

nike-vision-statement-mission-statement
Nike vision is “to bring inspiration and innovation to every athlete in the world.” While its mission statement is to “do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.”

Google Mission Statement

google-vision-statement-mission-statement
Google mission statement is to “organize the world’s information and make it universally accessible and useful.” Its vision statement is to “provide an important service to the world-instantly delivering relevant information on virtually any topic.” In 2019, Sundar Pichai emphasized a renewed mission to allow people “to get things done!”

Connected Strategy Frameworks

ADKAR Model

adkar-model
The ADKAR model is a management tool designed to assist employees and businesses in transitioning through organizational change. To maximize the chances of employees embracing change, the ADKAR model was developed by author and engineer Jeff Hiatt in 2003. The model seeks to guide people through the change process and importantly, ensure that people do not revert to habitual ways of operating after some time has passed.

Ansoff Matrix

ansoff-matrix
You can use the Ansoff Matrix as a strategic framework to understand what growth strategy is more suited based on the market context. Developed by mathematician and business manager Igor Ansoff, it assumes a growth strategy can be derived from whether the market is new or existing, and whether the product is new or existing.

Business Model Canvas

business-model-canvas
The business model canvas is a framework proposed by Alexander Osterwalder and Yves Pigneur in Busines Model Generation enabling the design of business models through nine building blocks comprising: key partners, key activities, value propositions, customer relationships, customer segments, critical resources, channels, cost structure, and revenue streams.

Lean Startup Canvas

lean-startup-canvas
The lean startup canvas is an adaptation by Ash Maurya of the business model canvas by Alexander Osterwalder, which adds a layer that focuses on problems, solutions, key metrics, unfair advantage based, and a unique value proposition. Thus, starting from mastering the problem rather than the solution.

Blitzscaling Canvas

blitzscaling-business-model-innovation-canvas
The Blitzscaling business model canvas is a model based on the concept of Blitzscaling, which is a particular process of massive growth under uncertainty, and that prioritizes speed over efficiency and focuses on market domination to create a first-scaler advantage in a scenario of uncertainty.

Blue Ocean Strategy

blue-ocean-strategy
A blue ocean is a strategy where the boundaries of existing markets are redefined, and new uncontested markets are created. At its core, there is value innovation, for which uncontested markets are created, where competition is made irrelevant. And the cost-value trade-off is broken. Thus, companies following a blue ocean strategy offer much more value at a lower cost for the end customers.

Business Analysis Framework

business-analysis
Business analysis is a research discipline that helps driving change within an organization by identifying the key elements and processes that drive value. Business analysis can also be used in Identifying new business opportunities or how to take advantage of existing business opportunities to grow your business in the marketplace.

BCG Matrix

bcg-matrix
In the 1970s, Bruce D. Henderson, founder of the Boston Consulting Group, came up with The Product Portfolio (aka BCG Matrix, or Growth-share Matrix), which would look at a successful business product portfolio based on potential growth and market shares. It divided products into four main categories: cash cows, pets (dogs), question marks, and stars.

Balanced Scorecard

balanced-scorecard
First proposed by accounting academic Robert Kaplan, the balanced scorecard is a management system that allows an organization to focus on big-picture strategic goals. The four perspectives of the balanced scorecard include financial, customer, business process, and organizational capacity. From there, according to the balanced scorecard, it’s possible to have a holistic view of the business.

Blue Ocean Strategy 

blue-ocean-strategy
A blue ocean is a strategy where the boundaries of existing markets are redefined, and new uncontested markets are created. At its core, there is value innovation, for which uncontested markets are created, where competition is made irrelevant. And the cost-value trade-off is broken. Thus, companies following a blue ocean strategy offer much more value at a lower cost for the end customers.

GAP Analysis

gap-analysis
A gap analysis helps an organization assess its alignment with strategic objectives to determine whether the current execution is in line with the company’s mission and long-term vision. Gap analyses then help reach a target performance by assisting organizations to use their resources better. A good gap analysis is a powerful tool to improve execution.

GE McKinsey Model

ge-mckinsey-matrix
The GE McKinsey Matrix was developed in the 1970s after General Electric asked its consultant McKinsey to develop a portfolio management model. This matrix is a strategy tool that provides guidance on how a corporation should prioritize its investments among its business units, leading to three possible scenarios: invest, protect, harvest, and divest.

McKinsey 7-S Model

mckinsey-7-s-model
The McKinsey 7-S Model was developed in the late 1970s by Robert Waterman and Thomas Peters, who were consultants at McKinsey & Company. Waterman and Peters created seven key internal elements that inform a business of how well positioned it is to achieve its goals, based on three hard elements and four soft elements.

McKinsey’s Seven Degrees

mckinseys-seven-degrees
McKinsey’s Seven Degrees of Freedom for Growth is a strategy tool. Developed by partners at McKinsey and Company, the tool helps businesses understand which opportunities will contribute to expansion, and therefore it helps to prioritize those initiatives.

McKinsey Horizon Model

mckinsey-horizon-model
The McKinsey Horizon Model helps a business focus on innovation and growth. The model is a strategy framework divided into three broad categories, otherwise known as horizons. Thus, the framework is sometimes referred to as McKinsey’s Three Horizons of Growth.

Porter’s Five Forces

porter-five-forces
Porter’s Five Forces is a model that helps organizations to gain a better understanding of their industries and competition. Published for the first time by Professor Michael Porter in his book “Competitive Strategy” in the 1980s. The model breaks down industries and markets by analyzing them through five forces.

Porter’s Generic Strategies

competitive-advantage
According to Michael Porter, a competitive advantage, in a given industry could be pursued in two key ways: low cost (cost leadership), or differentiation. A third generic strategy is focus. According to Porter a failure to do so would end up stuck in the middle scenario, where the company will not retain a long-term competitive advantage.

Porter’s Value Chain Model

porters-value-chain-model
In his 1985 book Competitive Advantage, Porter explains that a value chain is a collection of processes that a company performs to create value for its consumers. As a result, he asserts that value chain analysis is directly linked to competitive advantage. Porter’s Value Chain Model is a strategic management tool developed by Harvard Business School professor Michael Porter. The tool analyses a company’s value chain – defined as the combination of processes that the company uses to make money.

Porter’s Diamond Model

porters-diamond-model
Porter’s Diamond Model is a diamond-shaped framework that explains why specific industries in a nation become internationally competitive while those in other nations do not. The model was first published in Michael Porter’s 1990 book The Competitive Advantage of Nations. This framework looks at the firm strategy, structure/rivalry, factor conditions, demand conditions, related and supporting industries.

SWOT Analysis

swot-analysis
A SWOT Analysis is a framework used for evaluating the business‘s Strengths, Weaknesses, Opportunities, and Threats. It can aid in identifying the problematic areas of your business so that you can maximize your opportunities. It will also alert you to the challenges your organization might face in the future.

PESTEL Analysis

pestel-analysis

Scenario Planning

scenario-planning
Businesses use scenario planning to make assumptions on future events and how their respective business environments may change in response to those future events. Therefore, scenario planning identifies specific uncertainties – or different realities and how they might affect future business operations. Scenario planning attempts at better strategic decision making by avoiding two pitfalls: underprediction, and overprediction.

STEEPLE Analysis

steeple-analysis
The STEEPLE analysis is a variation of the STEEP analysis. Where the step analysis comprises socio-cultural, technological, economic, environmental/ecological, and political factors as the base of the analysis. The STEEPLE analysis adds other two factors such as Legal and Ethical.

SWOT Analysis

swot-analysis
A SWOT Analysis is a framework used for evaluating the business’s Strengths, Weaknesses, Opportunities, and Threats. It can aid in identifying the problematic areas of your business so that you can maximize your opportunities. It will also alert you to the challenges your organization might face in the future.

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