What is a Vision Statement?
A vision statement describes what a company desires to achieve in the long-run, generally in a time frame of five to ten years, or sometimes even longer. It depicts a vision of what the company will look like in the future and sets a defined direction for the planning and execution of corporate-level strategies.
Key Elements of a Good Vision Statement
While companies should not be too ambitious in defining their long-term goals, it is critical to set a bigger and further target in a vision statement that communicates its aspiration and motivates the audience. Below are the main elements of an effective vision statement:
- Motivating and inspirational
- Reflective of a company’s culture and core values
- Aimed at bringing benefits and improvements to the organization in the future
- Defines a company’s reason for existence and where it is heading
Example of a Vision Statement
Let’s look at Microsoft Corp.’s Vision Statement. Microsoft Corp. is an American multinational company that develops, manufactures, licenses, and sells technology products, including computer software, electronics, and personal computers. It is also one of the largest corporations in the world, alongside companies such as Apple, Inc. and Amazon.com, Inc.
Microsoft’s vision is:
Microsoft’s vision statement is forward-looking because delivering growth and impact in every community would conceivably take a lifetime or many lifetimes to achieve. It also brings the message of leading to changes and improving the quality of living standards all around the world, which strongly reflect Microsoft’s values of innovation, diversity and inclusion, corporate social responsibility, and environment.
The Rise of a Purpose Statement
The mission statement, vision, and values are traditionally the three most common descriptions of a business that explains why a company exists. In recent years, another type of statement has also emerged in the business world and is gaining more popularity. This type of statement is called the Purpose Statement.
A Purpose Statement conveys a company’s reason for existence, just as the mission statement and vision do, but it also shows the connection between the brand identity and workplace culture of the company. It combines the components of a mission statement, vision, and values into a single statement.
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