Why vision and mission matter in business

Summary

This video highlights the importance of defining a brand's Vision, Mission, and Values, emphasizing that these elements should be created by the founders of the business. The Vision is a forward-looking goal that inspires and motivates, while the Mission outlines the actionable steps to achieve it. Values represent the core principles that guide decisions and company culture. Through examples from brands like Ikea, Google, and Patagonia, the video illustrates how each element should be authentic, clear, and aligned with the business's long-term goals. It encourages businesses to revisit and refresh these elements regularly as they evolve.

Takeaways

• 😀 Defining your brand’s vision, mission, and values is crucial for long-term success and alignment within the business.
• 😀 The founder(s) should be the ones to define the vision and mission, with input from employees and stakeholders being secondary.
• 😀 A strong brand vision acts as a guiding light, providing a future-oriented goal and challenging aspiration for the business.
• 😀 The vision should be clear, concise, and inspirational, while also being challenging enough to motivate the team and stakeholders.
• 😀 Your brand's mission is the actionable plan detailing the steps your business will take to achieve the vision.
• 😀 The mission must be customer-focused, emphasizing purpose-driven actions that meet customer needs.
• 😀 Brand values are core beliefs and principles that guide decisions and actions within the business and must be authentic and consistent.
• 😀 Vision, mission, and values provide guardrails for decision-making and help align the business with its core purpose.
• 😀 These elements should be revisited and adjusted if necessary, especially as the business grows and evolves.
• 😀 The vision and mission should be permanent and deeply meaningful, but flexible enough to adapt to significant shifts in business focus.
• 😀 Real-world examples, like Ikea, Google, and Patagonia, demonstrate how vision, mission, and values come together to drive business success and societal impact.

Q & A

Why is it important to define your brand's vision, mission, and values?

Defining your brand's vision, mission, and values is essential because they provide clear direction, guide decision-making, attract customers, investors, and top talent, and create alignment within the business. They serve as guardrails to help ensure decisions align with the business's core purpose.

Who should define the vision and mission of a business?

The founder or founders of the business should define the brand's vision and mission. While input from employees, board members, and stakeholders is valuable, these core elements should reflect the intentions and values of the people who started the business.

What happened at Coinbase in 2020, and how does it relate to the importance of defining vision and mission?

In 2020, Brian Armstrong, the CEO of Coinbase, addressed an issue where employees were pushing a political agenda within the company. He publicly stated that the company's focus should not involve politics. This highlights the importance of a well-defined vision and mission to prevent conflicting agendas and maintain a clear, unified direction.

What role do vision and mission serve in decision-making within a business?

Vision and mission act as guardrails in decision-making. When facing difficult choices, these elements help guide the business by ensuring decisions align with the company's long-term goals (vision) and the steps needed to achieve them (mission).

What is the difference between a brand's vision and its mission?

A brand's vision is a forward-looking, inspirational statement that articulates the future state or end goal of the business, such as a revenue target. A mission, on the other hand, outlines the specific steps and actions the company will take to achieve that vision. While the vision is about 'what' the business aims to accomplish, the mission is about 'how' it will do so.

Why should a brand's vision be inspirational and challenging?

A brand's vision should be inspirational and challenging to motivate and inspire stakeholders, employees, and customers. If the vision is too easy or unambitious, it won't drive growth or innovation. A challenging vision pushes the business to strive for greater achievements.

What are brand values, and how do they relate to vision and mission?

Brand values are the fundamental beliefs and principles that guide a company's actions and decisions. While vision and mission define the 'what' and 'how' of a business, values represent the 'why' and the principles that influence daily decisions. They ensure consistency and authenticity in how the company operates.

How do brand values shape a company's culture?

Brand values influence a company's culture by setting expectations for behavior, communication, and decision-making. As the company grows and hires more people, these values help shape the environment and ensure that new employees align with the company’s core beliefs.

Can a company's vision, mission, and values change over time?

Yes, a company's vision, mission, and values can evolve over time, especially in the early stages. However, significant changes should be carefully considered. If the changes are drastic, they may reflect a fundamental shift in the business model or direction, which could require a rethinking of the entire business strategy.

What are some examples of brand vision, mission, and values from successful companies?

Examples include: Ikea’s vision to create a better everyday life for many people, its mission to offer affordable, functional home furnishing products, and values such as innovation and cost-consciousness. Google’s vision is to provide access to the world's information in one click, its mission is to organize information and make it universally accessible, and its values include a focus on the user. Patagonia’s vision is to live in harmony with nature, its mission is to build products that cause no harm and protect nature, and its values include environmentalism and activism.