Mission, Vision, Values, Purpose - Are You Confused Yet?
Over the last few months, Inward has had substantial conversations with several clients about “Purpose”. That’s right, purpose. One would think that purpose would be obvious to any successful organization that is attempting to achieve high performance, serve client expectations as best as they can, and attract the best talent out there. But the topic of “Purpose” seems to be elusive.
Generally, clients understand “mission” and “vision”, some understand “values”, but we are learning that many clients are confused when it comes to “purpose”. It’s understandable.
We do know that having a strong culture does help to attract, engage and retain talent. Strong culture also helps to build an organization, increase productivity, and efficiently leverage all resources to successfully implement a strategic plan. But which one of these four elements (mission, vision, values, purpose) is the strongest contributing factor to culture? Is it the combination of all four of these elements in balance? Or does one statement or articulation stand out over the others? Do you need all four?
To help illustrate the difference, I thought I would provide some distinction and definitions with the help of the Internet.
Mission - according to Wikipedia it is defined as follows: “Properly crafted mission statements serve as filters to separate what is important to an organization from what is not, clearly state which markets will be served and how, and communicate a sense of intended direction to the entire organization. A mission differs from a vision in that the former is the cause and the latter is the effect; a mission is something to be accomplished whereas a vision is something to be pursued for that accomplishment.” For instance, American Express mission statement is as follows: “At American Express, we have a mission to be the world’s most respected service brand. To do this, we have established a culture that supports our team members, so that they can provide exceptional service to our customers.”
Vision – Also according to Wikipedia, “A vision statement is a company's road map, indicating both what the company wants to become and guiding transformational initiatives by setting a defined direction for the company's growth. It is future-oriented, and describes where the company is going rather than the current state.” A vision statement functions as the "north star" - it is how all employees understand how their work every day ultimately contributes towards accomplishing the company strategy over the long term. When it is written succinctly in an inspirational manner, it becomes easy for all employees to repeat it at any given time. For instance, at Amazon, it is “our vision is to be the Earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online.”
Values - Core values are the fundamental beliefs of a person or organization. Core values help people know what is right from wrong; they can help companies to determine if they are on the right path and fulfilling their business goals; and they create an unwavering and unchanging guide. Core values are what support the vision, shape the culture and reflect what the company believes is most important. They are the essence of the company’s identity – the principles, beliefs or philosophy of values. It is the ethos and morale underpinning the company. Many companies focus mostly on the technical competencies, but often forget what are the underlying competencies that make their companies run smoothly — core values. Establishing strong core values provides both internal and external advantages to the company. Strong values should influence decision-making, recruitment/attracting the best talent, customer engagement and industry differentiation. Values are what a company draws from to distinguish right from wrong behavior. For instance, Starbucks is a good example of an organization that is clear about its core values. They have six core values that are equally important and in order in which they appear and speaks volumes about how Starbucks operates.
They summarize their core values into a value manifesto as follows: “At Starbucks, performance is measured on the basis of these core values. The information is translated into a scorecard and readily shared with managers, who in turn brainstorm ways to continually improve. All decisions are driven by these core values. The result? Starbucks has enjoyed extraordinary growth and is widely recognized as a highly performing company, even during times of economic turbulence.”
Purpose – Purpose inspires your staff to do meaningful and good work, and expresses the organization’s impact on the lives of employees, customers, clients, and communities — no matter who you’re trying to serve. Make them feel it. Inspire them through purpose. Studies show that over 80 percent of Americans do not have their dream job. If more knew how to build organizations that inspire, we could live in a world in which that statistic was the reverse—a world in which over 80 percent of people loved their jobs. People who love going to work are more productive and more creative. They go home happier and have happier families. They treat their colleagues and clients and customers better. Inspired employees make for stronger companies and stronger economies. The Disney Institute defines it as follows: It is the “WHY” we do what we do. It’s sharing a dream, a culture, being aspirational. It instills ownership and fuels passion. It is in building a business, it is building cathedrals and places of awe while creating happiness and fulfillment.
I know this sounds sort of corny, but if a company is able to define its purpose, why it exists down to the essence of who they are, why it is in business in the first place beyond making money and improving customer experiences, it can be a huge difference.
Are you confused yet? Here is our most concise summary:
- Mission: States what is important to the company, what markets will be served, and gives a sense of direction
- Vision: Future-oriented path for what a company aspires to achieve
- Values: Fundamental beliefs that form the essence of a company’s identity
- Purpose: Express the impact the company makes in the lives employees, customers, clients, and communities. Purpose is why we do what we do.
The next question is usually, “how do these elements fit together or do they stand alone?” Does having all four communicated simultaneously create confusion? How do these prescribed ideas demonstrate what individual behavior and how employees need to do perform differently? Do the combination and summation of all four translate into what the culture of an organization is? How do you measure it?
There isn’t enough time in this post to expand on this idea. I will devote time to expand on this idea in future posts. In the meantime, I would love to hear what you think. That way I can incorporate your thoughts in my next post. Thanks for reading and sharing in advance.