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7 Reasons Why Vision and Mission is Important for Business Development

An organization cannot just stand there without objectives, guidelines, and steps to achieve its goals. A company is established with certain aims and objectives. In addition to gaining profit, the company also has its own goals and expectations that impact its surroundings. These goals and expectations are usually stated in the company’s vision and mission. So, what exactly is the vision and mission? And what is the difference between the two?

Definition of Vision and Mission 

Definition of vision

According to the Oxford Languages, vision means the ability to think about or plan the future with imagination or wisdom. It is clear that the vision is the view, insight, dream, goal of a company that wants to realize in the future. While vision is the identity of an organization, especially the company since all the activities carried out within a company will be based on the company’s vision.

Definition of mission

While the mission is the concrete steps or forms of how an organization realizes the vision they have set. In other words, the meaning of mission is the work priorities, methods, or values that are the basis for providing an outline in realizing a vision.

The mission is to support the vision’s realization. However, the mission is more specific than the vision. It is common for a company to make its mission that detail that it includes its company products. The point is that the vision describes the plan, and the mission is the action plan.

Difference Between Vision and Mission

Vision and mission are two different terms, but they complement each other. Here are some differences between the two:

  1. Vision is the goal that company wants to achieve, including the dreams and aspirations of the company in the future. While the mission is the steps or concrete actions to realize those visions.
  2. The mission is more detailed than the vision, which is general.
  3. A vision usually consists of several statements, which are concise, clear, and represent everything. While the mission usually consists of points that explain the purpose and is a more detailed description than the vision.
  4. Vision is long-term. While the mission is short-term, carriable out immediately, and changeable if the previous missions have been carried out.

Reasons Why Vision and Mission Important for Companies

Providing optimal work standards

With the company’s vision and mission, employees know what its goals are and how they must work to help realize the company’s goals. Therefore, employees will indirectly provide optimal work standards to realize the noble goals set by the company.  

Make employees proud and feel their work more meaningful

If employees know and understand the noble purpose and aim and the company’s goals, they will be proud to realize the vision, mission, and goals. In addition, employees will feel their works is more meaningful. Since they work not only to meet their needs, they can work in an environment with similar understanding and work motivation.

Increase work morale and commitment

A noble purpose and goal make employees aware that their work is meaningful and makes them proud of the work. Therefore, employees will be more motivated and enthusiastic about working and more committed to helping and realizing the company’s vision and mission.

Ensuring the basic goals of a company

Both are made to map the basic objectives of the company’s establishment. With the goals rooted in the company, the work done to realize these goals will be clearer. 

Become a reference for the company in developing its business

A clear and achievable vision and mission will be the basis or guidelines for developing its business. Of course, this business development can be realized through the jobs and ideology of employees that can support the realization of the company’s goals so that the business can develop as expected. These goals are supported by controlled projects that the company has done.

As a guide for employees at work

Each department and division, following their duties and authorities further elaborate the company’s vision and mission definition. In this way, employees will understand what job descriptions they have to do and execute them on track.

Monitor employee performance with KPI management, run appraisals, and arrange training programs easily with the HRM system!

Making corporate decisions

When an employee makes a decision, the company’s purpose and hope will be the basis for making that decision. All decisions concerned with the company’s business are taken following the values of the vision and mission and benefit the company.

Example of Company Vision and Mission

source: bareksa.com

One well-known example of a company’s vision and mission is from IKEA. This Swedish furniture brand has a vision of “To create a better everyday life for the many people.” This vision means that IKEA’s products want to make everyone’s life easier. Not only for ease of function and purpose, but their products also target everyone, so it can help people to find ease by using their affordable products.

Meanwhile, IKEA’s mission is to “Offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.” The implementation of this mission can be seen from IKEA furniture products which have a simple design but still look attractive, very functional, and affordable prices, so that everyone can buy their products without feeling burdened.

IKEA’s vision and mission are very appropriate and have been implemented well by the company. Although many other competitors sell similar or even better and more expensive products than it, IKEA remains the world’s choice for the best furniture at affordable prices.

Conclusion

Vision and mission are essential for a company. Both will be the basis and reference for how the company will develop and what goals it wants to achieve. Therefore, the company needs to disseminate information about these two to all employees. This is done so all company levels can absorb and work based on the noble purpose and aim of the desired goals in the future. Do you find it difficult to control your business activities? The Hashmicro ERP System is the best ERP system in Singapore for enterprises that can help you automate all company activities. Everything from managing thousands of SKUs, recording automatic bookkeeping, managing stock, sales levels, and financial reports in one integrated system.

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Anak Agung Istri Karlita Aprilianti
Junior Creative Content Writer at Hashmicro.

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