(upbeat music)
-: An organisation will establish a vision
for why it exists,
as well as clear statements about how it plans
to achieve its vision.
The vision should be an inspiring
and motivating description
of the organisation's future state.
Beneath the vision, the organisation will often form
a mission, which supports their vision
with a statement about how
they will get to the future state.
Then come the values of that organisation,
and finally, the goals,
which are the targets for the initiatives
and actions that form part of their strategy.
You will see examples across industries
that many companies don't have both a vision and a mission,
or if they do, they sometimes appear written
the opposite way around.
Don't worry about it.
The technical definitions are not as important as the fact
that an organisation needs to state what their broader
purpose is and where they aim to get to.
They then need to explain how they will get there and when.
These are the key things you have to remember.
Let's look at an example.
Estee Lauder were founded in 1946
and they are a US manufacturer
of cosmetics with over 30 global brands.
Here is their vision statement:
'The global leader in prestige beauty: a well-diversified,
brand-building powerhouse
of unrivalled creativity and innovation.'
This clearly articulates how they
want to differentiate from their competitors,
and lead their industry.
It has an element of aspiration,
but also lays out their focus on brands,
creativity, and innovation.
Estee Lauder has a mission statement
that supports this vision.
'Bringing the best to everyone we touch
and being the best in everything we do.'
This is more emotive but is designed
to explain how Estee Lauder plan
to go about achieving their vision.
They're articulating the reasons their products exist,
and their value proposition to the customers.
Underlying the vision and mission are the values
of Estee Lauder, which are
its guiding principles for how it operates.
These include uncompromising ethics,
integrity, and innovation.
Values are a key part of an
organisation's culture.
The other part is norms,
which is essentially 'how people do things around here'.
It is important that the values don't contradict
in any way the strategy and how it will be implemented.
Finally, there are the strategic goals of the organisation,
which, for Estee Lauder,
include actions or targets for revenue growth,
strategic acquisitions,
investment return on new product development,
and a balanced product portfolio.
It's important to recognise the links between these areas.
Achievement of the goals must cascade up
to enable the vision and mission to be achieved.
Estee Lauder aims to be
a diversified brand-building powerhouse.
So their goals must lead towards that outcome.
The values much support the organisation,
so that if they live by them,
they have the best chance of delivering the vision.
To recap, an organisation's vision,
mission, and goals should clearly link
so that any person reading them together
will understand how they combine.
The vision is aspirational.
The mission summarises how the vision is to be achieved.
The mission statement should be a high level summary
of the value that is to be provided to stakeholders,
and how this is to be done.
Values are the guiding principles that cannot be compromised
and the goals identify the desired outcomes.
This can provide a solid foundation
or starting point for the business strategy
for the organisation.
The desired outcomes should link
so that if they are achieved,
the organisation is able to achieve its vision.