Responsibility for articulating an organization's vision typically rests with the CEO and leadership team. While a mission describes the present purpose of the enterprise, vision is about a desired future. When done well, vision statements serve as a source of ongoing inspiration for all stakeholders, helping them see what is possible if everyone commits and performs optimally. In Vision, located in the Resources section below, Porterfield (2004) explains more about the purpose of an organizational vision and vision statement as well as how they should be developed and communicated.
Resources
Collins and Porras (1991) examine the challenges of creating a single vision for large multidivisional and geographically dispersed organizations. They write about how difficult it can be for a leader to craft a compelling vision and how sometimes the resulting statement ends up being more about mission than vision. In presenting their proposed framework for vision creation, Collins and Porras emphasize the importance of agreement about core values and beliefs, sharing examples that are as relevant now as they were when their article was published.
Furthermore, an analysis of powerful vision statements led Kantabutra and Avery (2010, p. 3) to propose seven important characteristics:
- conciseness
- clarity
- future orientation
- stability
- challenge
- abstractness
- desirability or ability to inspire
Consult UMGC's online library to find out out more about how a vision should be developed, the appropriate role of leaders in formulating them, their relative importance for organizational success, and other questions related to the development of an organization's vision.
Namely, an organization’s vision statement should be powerful and serve as a compelling source of inspiration for stakeholders.
References
Collins, J. C., & Porras, J. I. (1991). Organizational vision and visionary organizations. California Management Review, 34(1), 30.
Kantabutra, S., & Avery, G. C. (2010). The power of vision: Statements that resonate. Journal of Business Strategy, 31(1), 37-45. doi:10.1108/02756661011012769
Porterfield, R. (2004). Vision. In M. J. Stahl (Ed.), Encyclopedia of health care management (pp. 586-586). Thousand Oaks, CA: SAGE Publications Ltd. doi: 10.4135/9781412950602.n837
Resources
Check Your Knowledge
Briefly, what is the difference between an organization's mission and its vision?
Why is a vision statement important to an organization?
It "provides an energizing force around which the organization's executives, employees, stakeholders, and financial analysts rally"
(Porterfield, 2004, para. 2).
How should a vision statement be communicated?
- Media should be chosen with a view to getting the widest possible attention throughout the organization.
- The highest-ranking executive officer needs to "consistently and clearly articulate the vision in every forum in which he or she participates."
Source: Porterfield, 2004, para. 8.
The following two vision statements belong to pharmaceutical companies.
- Which of these vision statements qualifies as most effective and why?
- In which of these companies would you want to invest, work, or serve as a board member?
If your answer to the second question is different from the first you will probably want to reflect on the reasons.
Company 1: Our vision is to be a trusted leader in changing the practice of medicine.
Company 2: To make a difference in the lives of people globally through our innovative medicines, vaccines, and animal health products. We are committed to being the premier, research-intensive biopharmaceutical company and are dedicated to providing leading innovations and solutions for today and the future.
Both vision statements are forward-looking, inspirational, and action-oriented. Both are concise, clear, and capture the desire to make a positive difference for those they serve. The difference is that the second includes some specific information as to how the hoped-for future will be accomplished. This helps it seem more achievable than the first company's vision statement.
Answers to the second question will vary depending upon individual priorities and preferences. Some may be drawn to the more open vision of the first company. Others might be attracted to a company committed to research and innovation.
Note: The vision statements were those published on the websites of two of the world's leading pharmaceutical companies, Novartis and Merck & Co., respectively, in July 2016.