What is a Vision Statement?

Cite this article as:"What is a Vision Statement?," in The Business Professor, updated April 3, 2020, last accessed October 20, 2020, https://thebusinessprofessor.com/lesson/what-is-a-vision-statement/.

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What is a Vision Statement?

A vision statement for a business is a description of what the managers believe the business should or will be in the future.

It will describe the organization’s aspirations, such as growth, profitability, societal contribution, stakeholder satisfaction, etc.

Important for the management planning process, the vision statement provides an overarching guide for managers in the following ways:

  • It allows managers to develop strategies for moving the company in that direction, and
  • It allows for the development of goals and objectives in furtherance of the organization’s strategy.

It can be very difficult, however, to craft a vision statement.

The process can best be described as using words to paint a picture of the ideal form of the organization.

In any event, the methods employed by company founders or senior managers in drafting the mission vary widely.

The approach may be high measured, rational, and analytical or creative, inspired, and whimsical.

Regardless of the technique used, it is important to remember the above-mentioned purposes of the vision statement.

There must be adequate substance to allow managers, as part of the planning process, to develop the goals and strategies that will lead the organization in the direction of the vision.

The vision statement is closely related to the mission statement. While the vision statement proclaims where the organization wishes to be, the mission statement will provide the reason for that desired statement.

Strategy is inspired by the vision. Achieving the vision means that the strategy has satisfied the organization’s mission.

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