Basic terms that people cannot agree with: mission and vision. The whole world mixes it up, from fresh graduates to CEOs.
First off, everything starts with a Mission. It is your raison d'être, “the reason or purpose of your business’ existence.” It answers the question “why do you do what you do.” It's the fire in your belly that drive you through your day.
Mission statement can be very fluid from one company from another, but it should be crystal clear. Here are examples of missions statements for electronics component manufacturers:
Note that all three companies are in the same business: electronics component manufacturing, but their reasons are very different one another, and therefore their operations and outcome are different too. Your business’ mission matters. It makes a difference, and this is why Branding needs to be at the heart of the company.
All three may prosper in the market at the same time, but their competition landscape with be very different. Company 1 is a low-cost producer to make normal electronic devices. Company 2 is Sun Microsystems (who makes Intel), who often leads with the new product development because they “leap ahead”. Company 3 could be a future company that would change the whole industry with this wave of green movement.
Businesses do not go bust because they draft the wrong mission statement, but because they fail to live up to it. The low cost producer will only survive if they can maintain their operational efficiency. The moment they are not the lowest ten producer, they will be out of business, because they are no longer serving their mission. Similarly, if Sun Microsystems fail to continue to fulfill their mission in making smaller and faster microchips, they will be driven out of business by their more innovative competitors.
Your mission is not your strategy. Remember, your mission is the “why”, strategy is the plan that answer the “how”. If you are the low-cost producer, there are a few strategies that you (or your competitors) can adopt: produce in third-world countries, buy in bulk, produce in bulk, have zero Marketing budget, pay below-minimum wage, use child labor, employ illegal immigrants, squeeze your suppliers to their bankruptcy, the options go on.
One more thing: It is not about putting big words. It is about looking at the big picture. Answer the question: “what is your purpose of existence in the value chain?”
Once you know your mission, then you could have your Vision, which is the long-term target of the organization.
You know you have seen a company fell into the pit of banality when they have “boring” vision statement such as “to be the world’s number one company in <insert gibberish here>”. I mean, who does not to be number one in everything, everywhere?
Your company vision should be (somewhat) unique to you. If you are in the electrical manufacturing business, and you share a same vision with a company that produces soda drinks, at least one of you is in a wrong business. A very good example on Microsoft’s vision (or Bill Gates'): “to put a computer on every desk and in every home,” and they are not even in the computer manufacturing business!
Although not every company needs to have such ‘bigger-than-life’ vision statement, it must be specific. If you are running a micro family-run business, say a kiosk on the street side, your vision will be “to provide means of livelihood for the whole family, and generate enough savings for a comfortable retirement.” When you have hit that long-term objective (when you have enough savings for retirement), the business can cease to exist. If the business is then handed over the next generation, the vision can be renewed, or amended accordingly. Maybe by then the vision is “to be the most reliable grocery seller in the area.”
Being visionary is about looking far, as well as about painting the future. It is about having a guiding compass. Where are we going? What should we do next? It should answer the question “What do you want this company to be in your next life?”
That’s it. Easy breezy. This explanation never fails anyone. If you are still confused or unsure, drop a comment below, or contact me. I am determined to get these terms straight.
First off, everything starts with a Mission. It is your raison d'être, “the reason or purpose of your business’ existence.” It answers the question “why do you do what you do.” It's the fire in your belly that drive you through your day.
- Company 1: We manufacture the cheapest component to make electronics gadget affordable
- Company 2: We manufacture smaller and faster components to enable better electronics devices
- Company 3: We manufacture the modular, scalable, and recyclable component to support technology development in a sustainable world
Note that all three companies are in the same business: electronics component manufacturing, but their reasons are very different one another, and therefore their operations and outcome are different too. Your business’ mission matters. It makes a difference, and this is why Branding needs to be at the heart of the company.
All three may prosper in the market at the same time, but their competition landscape with be very different. Company 1 is a low-cost producer to make normal electronic devices. Company 2 is Sun Microsystems (who makes Intel), who often leads with the new product development because they “leap ahead”. Company 3 could be a future company that would change the whole industry with this wave of green movement.
Businesses do not go bust because they draft the wrong mission statement, but because they fail to live up to it. The low cost producer will only survive if they can maintain their operational efficiency. The moment they are not the lowest ten producer, they will be out of business, because they are no longer serving their mission. Similarly, if Sun Microsystems fail to continue to fulfill their mission in making smaller and faster microchips, they will be driven out of business by their more innovative competitors.
Your mission is not your strategy. Remember, your mission is the “why”, strategy is the plan that answer the “how”. If you are the low-cost producer, there are a few strategies that you (or your competitors) can adopt: produce in third-world countries, buy in bulk, produce in bulk, have zero Marketing budget, pay below-minimum wage, use child labor, employ illegal immigrants, squeeze your suppliers to their bankruptcy, the options go on.
One more thing: It is not about putting big words. It is about looking at the big picture. Answer the question: “what is your purpose of existence in the value chain?”
Once you know your mission, then you could have your Vision, which is the long-term target of the organization.
You know you have seen a company fell into the pit of banality when they have “boring” vision statement such as “to be the world’s number one company in <insert gibberish here>”. I mean, who does not to be number one in everything, everywhere?
Your company vision should be (somewhat) unique to you. If you are in the electrical manufacturing business, and you share a same vision with a company that produces soda drinks, at least one of you is in a wrong business. A very good example on Microsoft’s vision (or Bill Gates'): “to put a computer on every desk and in every home,” and they are not even in the computer manufacturing business!
Although not every company needs to have such ‘bigger-than-life’ vision statement, it must be specific. If you are running a micro family-run business, say a kiosk on the street side, your vision will be “to provide means of livelihood for the whole family, and generate enough savings for a comfortable retirement.” When you have hit that long-term objective (when you have enough savings for retirement), the business can cease to exist. If the business is then handed over the next generation, the vision can be renewed, or amended accordingly. Maybe by then the vision is “to be the most reliable grocery seller in the area.”
Being visionary is about looking far, as well as about painting the future. It is about having a guiding compass. Where are we going? What should we do next? It should answer the question “What do you want this company to be in your next life?”
That’s it. Easy breezy. This explanation never fails anyone. If you are still confused or unsure, drop a comment below, or contact me. I am determined to get these terms straight.
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