LME005 – What is a vision statement and do you really need one?

Do you really need a vision statement? What can a business vision do for you? We’ll have some good and some bad examples of vision statements.

Do you need a vision statement for your company?

vision statement and business vision

Vision Statements are important!
Image: nruboc/ Resource: www.bigstock.com

I think so. With a good vision you can unleash the power of your team.

With a vision you paint a vivid picture of the future. You describe where you’re heading – both as a team and as a company. A true vision inspires people and creates a common understanding.

Do you have a vision statement for your company? Do you know about a vision in your company?

I mean this kind of statement or phrase or description, which tells where your business is heading, what you want to achieve and why your company exists?

Pseudo Visions

Don’t get confused with those pseudo vision statements of big companies in the corporate world. Visions like:

“As a reliable partner for our customers, we count on innovation, creativity and consistent customer focus as well as on top performance in all areas.“

Blablabla. Sorry, but that is just a bunch of buzz words. It doesn’t mean anything. It doesn’t say anything. How does this statement helps to distinguish your company from others? It doesn’t. Everyone wants to be a reliable partner. Every company wants to be customer focused.

Want another example of bad vision statements in the corporate world?

“We work hard to be a Company that Our Shareholders, Customers and Society Want!”

Oh, come on: That’s boring: That’s so generic: That can be true for almost every company.

Here is another great vision:

“We will be the No1 in our industry and strive for double digit sales and profit growth over the next 5 years.”

What? Maybe the investors like this statement. But what’s about the customers, the employees and partners of this company? Does this statement inspires, energizes or motivates anyone? No, it certainly doesn’t!

The business vision isn’t about money.

Hardly anyone is inspired by helping someone else make money. Why would employees put their heart and soul into such a thing?

Sorry to all the CEOs in the corporate world who developed this kind of pseudo visions: These vision statements are totally useless.

Difference between mission and vision statement

So what’s a good business vision then? Often people get confused with what the difference is between vision and mission.

Let’s answer that briefly: As part of a business strategy the vision tells where you are going and a mission tells why your business exists. But don’t think too much about these definitions and which one’s which.

Two important questions

If you are an entrepreneur and running a small business or if you are a manager in charge of parts of a business you should focus on these two questions:
1.           Why does your business exist?
2.           Where do you want your business to go?

Just to make it crystal clear. The first question is by far the most important one!

Why does your business exist?

What’s the purpose of your company?

There is a great Ted Talk by Simon Sinek about the why and about the purpose of a company. It’s called: “How great leaders inspire action.” It’s my favorite TedTalk. Simon describes in a wonderful understandable way how great leaders think, act and communicate and how important the “Why” is.

What makes a well-conceived vision statement?

Successful entrepreneurs, such as Richard Branson or Steve Jobs live for real visions. They are or were not primarily driven by making money.

These entrepreneurs are in pursuit of other objectives and visions that are bigger than themselves. These are frequently visions that carry a social or ecological value for the rest of humanity.

Some inspiring vision statements

Take Microsoft’s first vision statement as a case in point. Microsoft’s revolutionary founding vision in 1975 was:

“Our vision is a computer on every desk and in every home.”

Probably, it addressed only a limited number of people back then. But they enthusiastically supported it. They were intrinsically motivated to contribute to this vision, which was viewed by these people as socially relevant.

Here are some other examples of great vision statements:

The company Scooter:

“Our vision is to provide freedom and independence to people with limited mobility.”

Or Wikipedia

“Imagine a world in which every single person is given free access to the sum of all human knowledge.”

Just by listening to these visions, can you hear the difference to those pseudo visions?

What is a true vision statement?

If an entrepreneur or a company have a true vision then they ultimately pursue an objective that is larger than themselves. The business owner isn’t just working to satisfy his ego and the company doesn’t purely exist to earn money.

A true vision shows that the entrepreneur or the company strive to solve a meaningful problem. It is not about money, it is about solving a problem which makes the world a better place, which helps people.

And that’ll inspire other people. They’ll feel that the vision is important and useful.

And that’s why they want to support this vision and be part of it – as an employee, as a customer or as a supplier.

What’s about making good money?

As an aside, this doesn’t mean that the company or an entrepreneur cannot make good money. On the contrary. In order to attain the purpose, to achieve something of value for the world, the entrepreneur as well as the company should and must make money.

If it’s important to the entrepreneur to live in a beautiful home and drive a luxury Porsche, then that’s ok. It may be necessary for him to be satisfied and content. The luxury then becomes a means to an end if he’s focused on his true vision.

His true vision is striving to solve a meaningful problem. It is not about money, but money is a means to an end. It’s about solving a problem which makes the world a better place.

What‘s your vision statement?

What problem is your company solving to make the world a better place? If you don’t have a true vision yet or if you only have a pseudo vision in your company so far, don’t worry. You can work on it. Just click here to learn what exactly is needed to create an inspiring business vision.