Vision, Mission, Value (With Examples and Tips) | From A Business Professor

Summary

This video from Business School 101 delves into the critical components of a business's strategic plan: mission, vision, and value statements. It explains the purpose of each, offering real-world examples from companies like Microsoft, IBM, and Nike. Tips for crafting compelling statements are provided, emphasizing the need for clarity, ambition, and uniqueness. The video clarifies the differences between these statements, highlighting how they guide an organization's actions and decisions, and concludes with a call to action for viewers to reflect on which company's statements resonate most with them.

Takeaways

• 😀 A clear mission, vision, and value statement are crucial for starting a business as they communicate the company's purpose, direction, and principles.
• 🔭 The vision statement is a futuristic and inspirational description of what the company aspires to be or achieve in the long term.
• 🛠️ An effective vision statement should be concise, realistic, and specific to the organization, avoiding generic terms.
• 🏆 Examples of strong vision statements include Microsoft's focus on helping people realize their full potential, IBM's aim to be a leading IT company, and Nike's goal to inspire athletes worldwide.
• ✍️ Tips for writing a vision statement include outlining the company's highest achievements, speaking to employees, being ambitious, keeping it short, and ensuring uniqueness.
• 🎯 The mission statement defines the organization's purpose and guides its day-to-day operations, focusing on the core solutions it provides to society.
• 🌟 Good mission statements are brief, clear, and emphasize the organization's service to its customers and stakeholders.
• 🚀 Tesla's mission to accelerate sustainable energy, LinkedIn's aim to connect professionals, and PayPal's goal to provide secure payment solutions are examples of mission statements.
• 🤝 A values statement reflects an organization's core principles and ideals, influencing internal decisions and signaling external stakeholders about what's important.
• 🏛️ Core values should be memorable, actionable, and timeless, with formats ranging from single words to short phrases.
• 🌈 Companies like Disney, Zoom, and Airbnb have distinct values that shape their culture and conduct, such as openness, care for community, and embracing adventure.

Q & A

What is the primary purpose of a vision statement for a business?

A vision statement describes the future of the organization, revealing what the company aspires to be or hopes to achieve in the long term. It serves as a guide for choosing current and future courses of action and is meant to be inspirational and motivational.

What are the key characteristics of an effective vision statement?

An effective vision statement should be concise, futuristic, realistic, aspirational, and inspirational. It should not be generic but focus on outcomes specific to the organization.

Can you provide an example of a vision statement from a well-known company?

Yes, Microsoft's vision statement is 'to help people throughout the world realize their full potential.'

What is the main goal of a mission statement in the context of an organization?

A mission statement defines an organization's purpose or reason for being. It guides the day-to-day operations, communicates core solutions to external stakeholders, and motivates employees toward a common near to medium-term goal.

What should a good mission statement focus on according to the script?

A good mission statement should focus on what is most important to the organization, be brief, clear, informative, simple, and direct. It should avoid elaborate language, cliches, and generalizations, and emphasize outcomes and the people the organization is serving.

What are the four essential questions a company's mission statement should answer according to Forbes?

The four essential questions a mission statement should answer are: 'What do we do?', 'How do we do it?', 'Whom do we do it for?', and 'What value are we bringing?'

What is the purpose of a values statement in an organization?

A values statement highlights an organization's core principles and philosophical ideals. It is used to inform and guide the decisions and behaviors of the people inside the organization and signal to external stakeholders what's important to the company.

How should a values statement be formatted according to the script?

The format of the values statement depends on the organization. Some use one, two, or three words to describe their core values, while others provide a short phrase.

What are the differences between a vision statement, a mission statement, and a values statement?

Vision statements are forward-looking and state what an organization is striving to achieve. Mission statements are action-based, declaring the purpose of organizations and how they serve customers. Values statements highlight the core principles and philosophical ideals, guiding how the organization works, makes decisions, and takes action.

Why are mission, vision, and values statements important for an organization?

Mission, vision, and values statements serve as the foundation for an organization's strategic plan. They convey the purpose, direction, and underlying values of the organization and provide meaningful guidance, especially in times of rapid change.

What are some tips for writing a vision statement as mentioned in the script?

Tips for writing a vision statement include outlining the basics, speaking to your employees, being ambitious, keeping it short, and making it unique.

Outlines

00:00

📈 Crafting Your Business's Vision, Mission, and Values

This segment of the video script focuses on the importance of having a clear vision, mission, and values for a business. It explains that these statements are crucial for attracting talent, ensuring viability, and aligning stakeholders. The video aims to elucidate what these statements are and how to craft them effectively. Vision statements are described as future-oriented and inspirational, guiding the organization's direction and actions. Real-world examples from Microsoft, IBM, and Nike are provided to illustrate effective vision statements. Tips for creating a vision statement include outlining achievements, speaking to employees, being ambitious, keeping it short, and ensuring uniqueness. The segment emphasizes the vision statement's role in defining the company's aspirations and setting a course for the future.

05:02

🚀 Understanding the Role of Mission Statements

The second part of the script delves into mission statements, which define the purpose and reason for an organization's existence. It explains how mission statements guide daily operations, communicate core solutions, and motivate employees. The segment provides examples from Tesla, LinkedIn, and PayPal, highlighting how these companies articulate their missions. Forbes's four essential questions for a mission statement are discussed to ensure clarity and relevance. Tips for creating a mission statement include focusing on importance, avoiding clichés, and emphasizing outcomes and the people served. The segment concludes by emphasizing the mission statement's role in painting a picture of the company's identity and actions.

🏆 Establishing Core Values for Your Organization

The final segment of the script discusses value statements, which highlight an organization's core principles and ideals. It explains that value statements inform and guide internal decisions and behaviors and signal external stakeholders about what the company prioritizes. Examples from Disney, Zoom, and Airbnb are provided to show different approaches to value statements. Tips for creating a value statement include gathering ideas from stakeholders, selecting core principles, thinking of examples, writing clearly, and considering display locations. The segment concludes by summarizing the differences between vision, mission, and value statements, emphasizing their distinct roles in an organization's strategic plan. It stresses the importance of these statements in providing meaningful guidance, especially during times of rapid change.

Keywords

💡Business School 101

Business School 101 refers to a foundational course or introductory guide to business principles and practices. In the context of the video, it sets the stage for discussing the essentials of starting a business, such as understanding the problem, planning resolution, and aligning values with the team and customers.

💡Mission Statement

A mission statement defines an organization's purpose or reason for being. It guides the day-to-day operations and communicates the core solutions provided to society. In the video, mission statements are exemplified by companies like Tesla, which aims to accelerate the world's transition to sustainable energy, emphasizing the company's focus and direction.

💡Vision Statement

A vision statement describes the future of the organization, revealing what the company aspires to be or achieve in the long term. It is meant to be inspirational and motivational. The video provides examples such as Microsoft's vision to help people realize their full potential, illustrating how a vision statement can rally stakeholders towards a common goal.

💡Value Statement

A value statement highlights an organization's core principles and philosophical ideals, guiding internal decisions and behaviors and signaling external stakeholders about what's important to the company. The video mentions Disney's values like openness and integrity, showing how these values shape the company's culture and conduct.

💡Stakeholders

Stakeholders are individuals or groups who have an interest or stake in an organization. The video emphasizes the importance of stakeholders in validating the viability of a business idea and being inspired by the company's mission, vision, and values.

💡Top Talent

Referring to highly skilled and sought-after individuals, 'top talent' in the video script signifies the importance of attracting and retaining the best employees. It is mentioned in the context of how a company's mission, vision, and values can serve as a magnet for such talent.

💡Real World Examples

The video uses real-world examples to illustrate the concepts of mission, vision, and value statements. These examples from companies like IBM, Nike, and LinkedIn provide tangible illustrations of how these statements are crafted and utilized in successful businesses.

💡Inspirational

Inspirational is a term used to describe something that motivates and encourages. In the video, the vision statement is described as not only motivational but also inspirational, aiming to inspire current and prospective employees and customers by showing the organization's aspirations.

💡Concise

Conciseness is the quality of being brief and to the point. The video advises that an effective vision statement should be concise, meaning it should be short enough to be easily remembered by employees, serving as an extended tagline.

💡Unique

Unique in the context of the video refers to the distinctiveness of a company's mission, vision, or value statement. It is emphasized that these statements should be unique to differentiate the organization from others, even in industries where services might be similar.

💡Core Values

Core values are the fundamental beliefs that guide an organization's actions and decisions. The video explains that a values statement should reflect these principles, using Airbnb's values as an example, which include being a host and championing the mission, showcasing how core values can drive company culture.

Highlights

The importance of having a clear mission, vision, and value statement when starting a business.

A vision statement describes the future of the organization and what it aspires to achieve long-term.

Vision statements should be concise, futuristic, realistic, aspirational, and inspirational.

Examples of real-world vision statements from Microsoft, IBM, and Nike.

Tips for writing a vision statement, including outlining the basics and speaking to employees.

A mission statement defines an organization's purpose and guides its day-to-day operations.

A good mission statement is brief, clear, informative, simple, and direct.

Examples of mission statements from Tesla, LinkedIn, and PayPal.

A mission statement should answer four essential questions: what, how, for whom, and what value.

The values statement highlights an organization's core principles and philosophical ideals.

Values statements should be memorable, actionable, and timeless.

Examples of values statements from Disney, Zoom, and Airbnb.

Tips for creating a values statement, including gathering ideas and selecting core principles.

The differences between vision, mission, and values statements and their roles in an organization.

Mission, vision, and values statements as the foundation for an organization's strategic plan.

The significance of developing thoughtful and deliberate mission, vision, and values statements.

Transcripts

hello everyone welcome to business

school 101 when starting a business you

should have a clear picture of the

problem you're solving how you plan to

resolve it and which values drive your

team and hook customers to attract top

talent and ensure your idea is viable to

stakeholders you need to be able to

reduce these Concepts down to a simple

Mission Vision and value statement in

this video I'll explain what firm's

vision mission and value statements are

and provide you with some real world

examples and tips to help you better

craft your own statements

Section 1 vision statement the vision

statement describes the future of the

organization it reveals what the company

aspires to be or hopes to achieve in the

long term the vision statement is not

only inspirational and motivational but

also provides Direction mapping out

where the organization is headed in this

regard it serves as a guide for choosing

current and future courses of action an

effective vision statement should be

concise futuristic realistic

aspirational and inspirational it

shouldn't be generic but rather focus on

outcomes specific to the organization

here are a few real-world examples of

companies vision statements first

Microsoft's vision statement is to help

people throughout the world realize

their full potential

second as a traditional technology

company IBM's vision statement is to be

the world's most successful and

important information technology company

last Nike as the world's top

manufacturer of sports equipment its

vision statement is bring inspiration to

every athlete in the world and make

sport a daily habit

here are some tips for writing the

vision statement tip 1 outline the

basics ask yourself questions like what

are the highest level of achievements

your company wants to fulfill what is

your company's long-term goal write down

your answers to these questions can help

you form your vision statement

tip 2 speak to your employees one of the

primary goals of your vision statement

is motivating your team because they

will be carrying out your vision so it

should speak to them try brainstorming

with your employees to get a better

understanding of what drives your

Workforce

tip 3 be ambitious be bold and ambitious

in your vision statement to inspire

potential stakeholders in the scope of

your vision also be realistic about what

goals you can promise you'll meet

tip 4 keep it short a vision statement

should be concise enough for your

employees to remember consider your

vision statement an extended tagline and

make sure it's no longer than one

sentence

tip 5 make it unique you want your

vision statement to address how your

organization is the only one that will

be able to meet that specific goal even

if other companies technically offer the

same or similar service your unique goal

will differentiate you from the pack

section 2 mission statement

the mission statement defines an

organization's purpose or reason for

being it guides the day-to-day

operations of the organization

communicates to external stakeholders

the core Solutions the organization

provides in society and motivates

employees toward a common near to

medium-term goal in short the mission

statement paints a picture of who the

company is and what the company does

a good mission statement should only

focus on what is most important to the

organization it should be brief clear

informative simple and direct it should

avoid elaborate language cliches and

generalizations and it should emphasize

outcomes and the people the organization

is serving here are a few real world

examples first as one of the most famous

electronic vehicle brand Tesla's mission

statement is to accelerate the world's

transition to sustainable energy

second LinkedIn as a business and

employment-oriented online service

company its mission statimist is to

connect the world's professionals to

make them more productive and successful

last papal an American multinational

Financial technology company its mission

statement is to build the web's most

convenient secure cost-effective payment

solution

Forbes suggests that there are four

essential questions a company's mission

statement should answer

what do we do

how do we do it

whom do we do it for

what value are we bringing if you have a

mission statement make sure it can

answer these questions it makes all the

difference

Section 3 value statement

the values statement highlights an

organization's core principles and

philosophical ideals it is used to both

inform and guide the decisions and

behaviors of the people inside the

organization and signal to external

stakeholders what's important to the

company an organization's core values

shape daily culture and establish

standards of conduct against which

actions and decisions can be assessed a

values statement should be memorable

actionable and Timeless the format of

the values statement depends on the

organization some organizations use one

two or three words to describe their

core values While others provide a short

phrase

here are some real world examples

first Disney's values include openness

honesty Integrity courage respect

diversity and balance

second zoom's values include care for

Community customers company teammates

selves

airbnb's values are be a host Champion

the mission Be A Serial entrepreneur

embrace the adventure

here are some tips to create a value

statement tip 1 gather ideas by seeking

input from Key stakeholders at your

organization

tip 2 select core principles that best

reflect your organization's values

tip 3 think of examples of how your

chosen values affect the company's

actions

tip 4 write up your value statement and

clear concise terms and seek feedback

tip 5 think about where you will display

your value statement

section 4 differences in summary

sometimes it's easy to confuse a values

statement with a mission statement and

vision statement but they reflect three

very different aspects of who you are as

a business vision statements are

forward-looking statements that state

what an organization is striving to

achieve it should Inspire current and

prospective employees and customers by

showing its aspirations as an

organization in contrast mission

statements are action-based statements

that declare the purpose of

organizations and how they serve their

customers this sometimes includes a

description of the company what it does

and its objectives the values statements

highlight an organization's core

principles and philosophical ideals in

essence it is the moral direction of the

organization that guides how it works

makes decisions and takes action

to sum up Mission Vision and value

statements serve as the foundation for

an organization's strategic plan they

convey the purpose Direction and

underlying values of the organization

when developed and implemented in a

thoughtful and deliberate manner these

statements can serve as powerful tools

that provide organizations with

meaningful guidance especially in times

of Rapid change consequently taking the

time to craft relevant Mission Vision

and value statements should be carefully

considered

all right that's all for today's topic

so which company's vision mission or

value statement inspires you the most do

you have any questions about writing

your own please leave your thoughts or

questions in a comment below I hope that

you guys have enjoyed this video and if

you did make sure you give it a thumbs

up and subscribe to my channel thanks

for watching and I will see you next

time