Why Are Vision Statements So Important in Building Business Strategy?

I used to think that vision statements were more about what you had to do; rather than what you needed to do when building a strategy.

Strangely, vision in a strategic business plan is often viewed as 'soft' and intangible, and perhaps even as an unnecessary, nice-to-have.

What is a vision statement and why is it important to your small business strategic planning?

First, let's review the difference between a vision and mission statement: the vision is about looking forward and about formalizing where you and the business are going; the mission is about defining 'who' the business (the character of the business - yes, I've personalized the business organization) is and what the business does.

So, if strategy is your business road map, then vision is your starting point on the journey.

You need to define your vision for your business. You need to be clear in where you want to go: what is the future for your business? If you cannot define that future, you will not be able to build a successful strategic plan.

Some sample vision statements:

• To become an international company manufacturing and distributing the best quality widgets in our marketplace. Through all our interactions with our stakeholders (our employees, our customers, our suppliers, our shareholders) we will demonstrate our respect for, and our commitment to, them.
• To become a leading global provider of management software to small businesses; enabling those businesses to grow and succeed.
• To become one of the top ten internet business resource advisors to small business owners around the world.

When you read these sample statements, you can understand the kind of future business that the business owner is trying to create.

The above three visions are somewhat too generic, however they also show some of the attributes of clear and direct vision:

• They define the potential geography of your market;

• They describe what you envision your business doing in the future and, if possible, define the benefit to the market;

• and they provide some type of measurement of business performance - so that you can recognize when you've achieved your original vision (before that happens you need to enlargen, change, adapt, grow your vision).

You need to build your vision before you can build your strategy and enjoy successful business growth.

Would you start driving aimlessly around without knowing where you want to go? If you don't build a vision for your company; it will be difficult, if not impossible to achieve your business goals. Your vision will provide the direction (the map) for the business to follow.

Once you have the direction, draft a business plan outline and begin writing a business plan - use your vision to develop a strategy (or drawing a map) to get you to where you want to go.

Craft your vision carefully; then build your strategy and your business plan (including mission) to drive your business in the right direction.

Review your vision statement every 3 to 5 years and make sure your vision is still directing your business to where you want to go - technology, the economy, the environment, demographics, psychographics can have an impact on direction.

Return from Vision Statements to Strategy.

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