What is the difference between a vision and a mission statement at a company?

When it comes to the difference between mission and vision statements, there’s a quick and simple answer. Mission statements outline what a business does and how they achieve their objectives. Whereas a vision statement is an aspirational point on the horizon that a company wants to reach. But wait, wait, don’t click away just yet! There’s significantly more nuance and complexity to it than that.

While there may be a straightforward surface-level definition of mission and vision statements, to rely on that alone is a mistake. Much like the ancient Greek philosophical debate about “What is a man?” Which ended with Diogenes countering Plato’s claim of ‘featherless bipeds’ by presenting a plucked chicken and saying “Behold, I’ve brought you a man!”

It’s technically correct, but evidently the question is more intricate than it initially appears and requires deeper analysis to reach an understanding. Philosophy and chickens aside, both mission and vision statements are of vital importance for any thriving company. And confusing the two can lead to some frankly detrimental results. As such, we’ve clearly broken the two statements down in order to define them, to see if one is greater than the other, and illustrate positive examples of each.

What is a mission statement?

Your mission statement is what drives and defines your company. What do you do exactly? How do you deliver your products or services in a unique way that makes your company stand out? The answers to these questions form the backbone of your business’ mission statement.

Mission statements are a confirmation of values. They speak to a company’s core operation, as well as culture: how they conduct themselves, and how they want to act and be perceived by others.

A well composed mission statement, also acts as a unifier and a motivator. Because it’s the flag under which your workforce marches. The clear banner of intent that they follow and understand. Without it, your workers can become disorganized, unmotivated, operating in silo, and costing money through disorientation and discombobulation. But by outlining your company’s purpose, you signpost to your staff the organization’s shared direction and meaning.

But before you start penning a multipage document, there’s another catch. Much like a flag or mantra, your mission statement must be concise and recognizable. That means boiling down everything about your company, what you stand for, and what you aim to achieve, into a small handful of sentences.

And this is the hurdle that a lot of companies struggle with. Because while your business may be successful, it’s not often we stop to ask the big, fundamental questions of “What do we do? What do we stand for? What makes us special?” What’s more, your mission statement can’t be too convoluted, come with caveats, or feel like an inside reference. It must speak to not only members of staff, but stakeholders, investors, and consumers as well.

What is a vision statement?

Your vision statement is a directional heading. Not only in terms of milestones like employee count, profit margin, or brand recognition, but what you want to see the organization become. As such, the questions posed are more aspirational. They look out at the industry in which you operate and see the potential to be true thought leaders and industry pioneers.

Vision statements are an optimistic balance of how you see your company progressing, and how said progress will influence your competitors to lift themselves up to your standards.

The value of vision statements is multifaceted. On the one hand, they signal to your workers that the company is forward looking. Not only that, but they are part of a movement which is going to have dramatic positive effects on the corporate landscape.

For your backers, investors and stakeholders, a vision statement acts as a promise for long-term growth. Rather than being subject to external pressures, your business is one of clear focus. You have presented an outline of where you are heading and will rally everyone to make that ideal a reality.

And to consumers and customers, a strong vision statement is a promise for the future. It’s the commitment to be a force for good. In doing so, this simple statement is designed to excite, elevate and inspire, more than clinically inform. Vision statements, however, come with their own challenge. Once again, brevity is key. More so this time, with most vision statements ending up as a single sentence concept.

Mission statements vs vision statements

Like any tool available to you, both mission and vision statements have their uses and benefits. There is also a level of interplay between the two, but they have a fundamental difference which can cause complications during the drafting phase.

The danger of confusing a mission statement and a vision statement, is the disarray it can lead to. After all, understanding that a mission statement is who you are, and a vision statement is who you want to be, is key to setting and achieving clear objectives.

Let’s use a simple analogy. Say you’re in reasonable shape but want to improve. What’s more, you have your heart set on entering a marathon one day. Where you place in said marathon is irrelevant, you simply want to go the distance, cross the finish line, and raise money for a chosen charity.

In this case, your mission statement would be that you are a fairly fit and agile individual, who puts in the necessary work to continue developing muscles, personal bests, and recovery times. The vision statement is that you intend on competing in a very intense but rewarding physical ordeal, while having a positive altruistic impact.

Were the two statements jumbled, you could be disillusioned to think that you are already at a competing level, and can enter something like a marathon with zero preparation. This lack of self-awareness and over confidence, will of course lead to disaster. Similarly, “I’ve entered a marathon to get into shape” is the absolute wrong way of going about matters, and will also end in failure.

And this hypothetical is focused on an individual. When looking at company-wide responsibility, the analogy can be spread further to signing all your friends and family up for this ill advised undertaking. It’s reckless and can only end in significant setbacks.

Examples of a good mission statement

In order to form your own mission statement, you have to take a long, hard look at your company. Whether a startup or a success that has been running for many years, what is at the core of your organization’s existence? And then you need to get creative with it. This can’t be a first draft answer, it should be cleverly constructed, easy to process, and to the point.

Google

Google’s mission statement is “To organize the world’s information and make it universally accessible and useful.” It’s clear, descriptive, and direct. For those working for or with this business, it should be easily apparent what to expect.

Sony

“To be a company that inspires and fulfills your curiosity.” This one leaves a lot of room for interpretation. Initially it could be construed as loose or lacking in specificity. But when you consider the breadth of Sony’s holdings and properties, ranging from electronic goods to film production, suddenly this statement rings true as a guiding principle.

eBay

For the longest of time, eBay’s mission statement was “To be the world’s favorite destination for discovering great value and unique selection.” This, however, eventually changed to “We connect people and build communities to create economic opportunity for all.” This is a wonderful example of how a mission statement doesn’t have to be static. It can shift and evolve as your company grows.

Examples of strong vision statements

Vision statements are about selling ideas and inspiring others. It’s the rallying cry that, with an stretched arm shouts, “Onward!” So how have major organizations handled them?

Toyota

“Toyota will lead the future mobility society, enriching lives around the world with the safest and most responsible ways of moving people.” What’s interesting here, is that Toyota may have previously placed value on a vision of being the fastest or having the most market dominance. But through this vision statement, we can tell that their priorities are safety and responsibility – in line with contemporary customer expectations and desires.

Cisco

Cisco’s vision statement is “changing the way we work, live, play, and learn.” This is an incredibly ambitious vision. It sets out an objective of not only succeeding in their specific field, but to fundamentally alter the way in which we conduct ourselves as people. That is a level of aspiration that takes you back and asks the simple question, “Are they dynamic enough to really do that?” as well as answering it with a confident “Yes.”

Ben & Jerry’s

As detailed on parent company Unilever’s website, Ben & Jerry’s is “committed to making the world a better place.” You could ask how they intend to go about achieving such a monumental vision. And the answer is two-fold. Practically, with a range of programs and investment that advances human freedoms and worker’s rights. But, for many people, the answer is much simpler: with ice cream. Ice cream makes the world a better place.

So, by starting with the basics and honest reflection, companies can utilize both mission statements and vision statements to signal to the world their purpose. As well as outlining their goals, ideals, and the impact they want to have on the future itself.

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