In our last article we examined the difference between a vision statement and mission statement. This time we will be looking at why a vision statement is important to a company. These integral statements can have a significant role in bettering your business, so pay attention! 

Before we get underway, we would like you to imagine an international award that your company might win ten years from now. What is it for? Now, we would like you to imagine yourself retiring, and selling the company. What would you say about the organisation to entice potential buyers? Can you answer this question? This is essentially what we will be discussing in our article on why a vision statement is important.    

WHY IS A VISION STATEMENT IMPORTANT FOR BUSINESS?

A vision statement marks the future objectives of an organisation, which are then used to inform the mission, strategic planning, culture, and company values. Almost mystical in its existence, the vision statement is a foundational document that every organisation, business, and non-profit needs.  

So, why bother? Every organisation should seriously consider putting some time aside to develop a strong vision statement or revisit an existing one. Research shows that having a vision impacts customer and employee satisfaction, team cohesion, performance, and financial growth. Vision statements have also consistently been the top-rated management tool deployed by senior teams. Don’t believe us? Below you will find a list of reasons why a vision statement is important and is not just another marketing ploy.  

1. THE TEAM VISION GUIDES EMPLOYEES  

Having a reliable way for employees to validate their thinking and actions leaves less room for guesswork and error. When an organisation has taken steps to formulate and adopt a vision statement, it increases the likelihood that an employee will act according to its intended purpose and direction. Not only that, but having team vision can improve employee engagement as they feel more connected to the goals of their work.

2. A VISION STATEMENT CAN DETERMINE AND INFORM 

Strong vision statements will make the process of setting targets and tracking the organisation’s performance much easier. This is because they construct clear principles about how the organisation intends to do business. When management is tasked with bringing current standards and practices into alignment, they can refer to these overarching principles for guidance.   

3. A VISION STATEMENT WILL HELP TO ATTRACT AND RETAIN TALENT

Imagine you are in a bookshop, and you pick up a book, but it does not have a blurb to tell you what it is about. For most of us, we are going to put the book back on the shelf rather than go through the process of buying it and finding out later that it does not interest us. Well, the same goes for companies without vision statements.  

Having a vision statement is important for employees and customers to understand your organisation and brand values. For recruiters, it could mean the difference between finding the right candidate and failing to attract them to apply for the position. The vision statement indicates what behaviours, characteristics and skills represent your business, saving you time, energy, and money during the interview process.  

4. IT REDUCES FRICTION DURING RESTRUCTURING   

Going through a restructuring or significant reallocation of resources can be an incredibly stressful time for your organisation. It can often help people to accept such changes when they are explained and accounted for. When a restructuring occurs to align it with the vision statement, it can give context to these changes, telling us why they must take place and how they can benefit.  

5. THEY PROVIDE A STABLE FRAMEWORK   

A company vision statement can help a business survive the loss of a charismatic leader, founder, or change of management. When the vision is made an integral part of the organisation, it can give the company strength and direction, even after the people who helped create it have left. This ensures that those who take over can continue to move the organisation from strength to strength.    

6. A COMPANY VISION CAN INSPIRE 

As a leader looking to inspire, you must answer the following questions, “What’s new? What is next? What is better? And to do that, you should refer to the vision statement.  

Inspiring individuals and teams help the organisation to operate in a state of focus. Being focused means a willingness to channel all energy and creativity in the same direction. When teams share a vision, they can look beyond internal politics to see the benefit of collaborating with separate departments, even at the cost of their own.  

7. A TEAM VISION HELPS WITH PUBLIC RELATIONS  

The vision statement defines an organisation and is an essential part of its public relations strategy, answering who we are, what we do, why we do it and what we want to communicate to the outside world. It tells potential customers, partners, and suppliers why they should use and purchase from your organisation rather than your competitor. In a globally connected, environmentally conscious, and saturated market, your message must be a carefully constructed one. Aligning the company’s branding, values and communications with a strong vision statement means that there will be consistency between what happens inside and what is communicated outside. Keeping the company and its public image coordinated gives its persona greater gravitas.  

CONCLUSIONS 

So, there you have it, 7 reasons why a vision statement is important! We hope that this article has encouraged you and your team to run to the drawing board to start planning your vision statement. It may take some time and revisiting, but in the end, you will end up with a piece that truly encapsulates your company that you can take with you onto the global stage. So do not worry if you have no idea where to start because, in our next article, we will cover the basics of writing a vision statement.  

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