Masters management Program, UMM

Strategic Management, UTS 2021

Topic: vision, mission, goals and objective of an organization.

Name: Alhajie Musa Kamara. - 2020210280211009.

1. Introduction:

The success of organizations depends on its ability to direct the energies of its members
in effectively serving and providing the societal needs. For the past decades organizations have
subscribed to the fact that, the formulation of vision and mission usually compressed in
statements is a building block for effective management of organizations, (Oghojafor, Olayemi,
Okonji, & Okolie, 2011). The role of Vision and mission statements on organizational strategy
cannot be underscored in the aspects of the performance of organization, because the expected
role and significance of vision and mission statements have been observed carefully for years in
the literature of strategic management (Powers, 2012). Vision and mission statements have been
strongly considered as a necessary aspect of the process of strategic management for various
types of organizations; whether private or public sector, profit or non-profit, multinational or a
small, medium and large scale enterprise (Darbi, 2012).
Principally, vision and mission statements guide all the activities of organizations and
businesses. To Mullane, (2013) vision and mission statements can be used to establish a common
and shared sense of purpose and also work as a channel by which the focus of employees are
molded. Thus, Ozden (2011) consider the formulation of vision and mission a crucial step in
strategic planning. The success of strategic planning largely depends on the proper identification
and formulation of vision and mission statements. In view of Papulova, Z. (2014) he argued that,
vision and mission are not new terms or topics of research, and that even in ancient Greece, there
were two views on how to develop a vision. The first view explained visions as emerging
pictures based on visual rays emanating from the eye (T Putri, 2007). This view was promoted
by the mathematician Euclid (300 BC). The second view explained visions as images generated
in our mind based on knowledge and experiences. This was the view of Aristotle (384-322 BC)
and Plato (427-347 BC). Plato claimed in his dialogues that our thoughts are guided by our
desires mainly derived from our experiences.
Many experts admit that there is not one precise or ideal way to develop mission and
vision, and the issue is not only about the creation and development but also about seeking the
value, meaning and significance of vision and mission for management of organizations and
about their implementation. If the task of strategy is to lead us to the desired strategic goal, then
vision and mission should tell us more about the future and its direction, (Ozden, 2011). Vision
and mission should explain why we chose the specific strategy. There is a close relationship
between the vision and mission. As the vision statement is a static mental picture of what you
want to achieve, the mission statement is a dynamic process of how the vision will be
accomplished. The vision and mission guide the everyday activities of every person involved in
the business.
Therefore, vision and mission statements should be simple, concise and easy to
remember. Use just enough words to capture the essence. The statements need to capture the
very essence of what your organization or business will achieve and how it will be achieved. So
statements of vision and mission should be a single thought that can easily be carried in the
mind. This makes it easy for everyone in the organization to focus on them. According to
Hofstrand, D. (2016) the vision and mission statements should not be like a “cast in stone”
sentence, because, they need to be updated and modified especially when the organization
changes its focus. It is often good to write the statements as a document to be used for a period of
time, and then revisit them a few months or a year later if needed. Because it is important to
everyone involved in the organization, including outside stakeholders, to understand what the
organization will accomplish and how it will be accomplished. It means “keeping everyone on
the same page” and “pulling in the same direction”, (Ozdem, 2011).
However, the major purpose of an organization is in line with the values and
shareholder’s expectations and must normally answer the questions: ‘what is our business?’
(Johnson, et al., 2008); and ‘what is our business for?’ (Drucker, 1973), mission statements show
the reason for the existence of a business, and aim to combine diverse areas of the organization
for a common cause, to produce a strategic orientation for the business (Erkan, 2008). In
managing strategy, the intention is to create an external loyalty to the vision and mission of an
organization, and encourage a culture that defines and supports vision and mission statements
(Durna & Eren, 2002). There is no dis-believed about the differences between vision and mission
statements. However, it is common for some organizations to combine their vision and mission
statements in one statement (Joachim, 2010).
Hence, Hofstrand (2016) comments that mission and vision should be formulated to give
strength to the organization culture and increase oneness and faithfulness among members in order to
increase motivation of employees and assist people in having an idea of the organizations’ culture ; thus,
vision statement must have a reflection of the culture of the organization. A mission statement that is
well prepared will identify the key reason of the firm and its area of activity in relations to goods
and markets which differentiates the company from others (Aktan, 2003). Vision statements are
also another crucial element of strategic planning. Vision focuses the unknown to identify the
future that has the combination of present facts, hopes, strength and weaknesses, dreams, threats
and opportunities. A strong vision helps a business to guess future events, prepare for changes
and innovations, courageous in facing the future, forecast changes in the demand of customers
and boost employee efficiency (Powers, 2012). Bailey Group (2015) says, mission is why a firm
is in business. It is untimely and enduring, it is what organizations can cast in concrete or better
still commit to some level of permanence. He went further saying that some mission statements
are more generic than specific, for instance the mission of Google is “to organize the world’s
information and make it universally accessible and useful”.
Strategically, a decent vision statement ought to stress an unusual feature of the firm that
distinguish it from others and take all future activities that were planned to consider the internal
and external environment of the organization (Ozden, 2011). Various organizations use various
glossaries to express strategy (vision and mission), some do that in their effort to show
uniqueness, whilst others as argued by Mullane (2002) mixed them unintentionally. To
determining the extent of corporate awareness on vision and mission relevance in the effective
management of organization and to understand the formulation and important of vision and mission and it
related components (objective & goal) the next section below focus on series of steps on how these can
direct an organizations’ strategy.
2. Understanding Vision, Mission, Objective and Goal.
1) Vision:
Simply is a bigger picture of what you want to achieve. In general term, vision is seen as a
picture of excellence that is something the person, team or organization wants to create in its best
possible future. As was defined by A. Joachim, (2010) vision origininated from creative
imagination and it is viewed as a mental picture of a compelling future situation.
b. The Development of Vision:
According to J. Papula, Z. Papulova, (2009) there are several ways to develop a vision, as
follow:
a. Using intuition: is the traditional way to discover and develop a vision. Vision is seen as an
idea which surprisingly and suddenly approached its creator - a visionary. Often these visionaries
are also founders of organizations (like Thomas Watson or Steve Jobs) who can lead the whole
organization towards vision achievement.
b. Team approach: is another option for vision development. Working in a team with people that
can bring unusual ideas, views and inspirations can be very beneficial and result in creative and
innovative solutions. Every individual has abilities and an incredibly large capacity of mind. If
we consider that there is team of people who are creative and are thinking strategically, we could
apply the saying, "two heads are better than one."
c. Rational approach: is another possible alternative to vision development. This approach uses
rational and logical thinking. In this case, we rely on analysis and synthesis, induction and
deduction, comparison and other techniques of empirical investigation. But this approach will
never lead us to new revolutionary or radical vision because it relies on suggested techniques and
practices based on analyzing information from the past.
d. Adaptation: is to adapt the vision of another subject/organization. We can be motivated by the
vision of another organization and understand its importance and significance. In this case we
can join this subject and as a partner work together to fulfill the vision.
2). Mission:
Unlike the vision that allows us determine direction and indicates where we want to get to;
mission defines the space in which the company will operate, (Papulova, Z. 2014). Mission is a
purpose directing the identity of an organization, employees, customers, stockholders and the
public to know about the fundamental principles of the business operations, (A. Henry, 2008).
According to Abrahams, (2007) defines mission as a strategy to explain company values, beliefs,
philosophy and aspirations.
b. The development of mission statement:
According to Henry (2008) there is no one way of creating an effective mission statement;
no recommended format, formula or pattern focusing on reaching the target audience. However,
experts and researchers in the field of strategic management recommend some suitable elements
of mission statements.
According to F. David (2003) he suggested nine components in the mission statement:
1) Customers (the target market)
2) Products/Services (offerings and value provided to customers)
3) Geographic Markets (where the firms seeks customers)
4) Technology (the technology used to produce and market products)
5) Concern for Survival/Growth/Profits (the firm´s concern for financial soundness)
6) Philosophy (the firm´s values, ethics, beliefs)
7) Public Image (contributions the firms makes to communities)
8) Employees (the importance of managers and employees)
9) Distinctive Competence (how the firm is different or better than competitors).
3) Goals:
These are general statements of what needs to be accomplished to implement a strategy. More
specifically, a goal is a milestone(s) in the process of implementing a strategy.
Examples of business goals are:
 Increase profit margin
 Increase efficiency
 Capture a bigger market share
 Provide better customer service
 Improve employee training
 Reduce carbon emissions.
b. Criteria in setting Goals:
Be sure the goals are focused on the important aspects of implementing the strategy.
Be careful not to set too many goals or you may run the risk of losing focus.
Also, design your goals so that they don’t contradict and interfere with each other.
Goal should meet the following criteria:
 Understandable: Is it stated simply and easy to understand?
 Suitable: Does it assist in implementing a strategy of how the mission will achieve the
vision?
 Acceptable: Does it fit with the values of the organization and its members/employees?
 Flexible: Can it be adapted and changed as needed?

4) Objective:
Objectives provide specific milestones with a specific timeline for achieving a goal.
Commonly, objectives are achieved by setting specific implementation plans (action Plans)
Significantly, objective turns a goal’s general statement of what is to be accomplished into a
specific, quantifiable, time-sensitive statement of what is going to be achieved and when it will
be achieved. Examples of business objectives are:
 Earn at least a 20 percent after-tax rate of return on our investment during the next fiscal
year • Increase market share by 10 percent over the next three years.
 Lower operating costs by 15 percent over the next two years through improvement in the
efficiency of the manufacturing process.
b. Criteria to meet in developing objectives:
 Measurable: What specifically will be achieved and when will it be achieved?
 Suitable: Does it fit as a measurement for achieving the goal?
 Feasible: Is it possible to achieve?
 Commitment: Are people committed to achieving the objective?
 Ownership: Are the people responsible for achieving the objective included in the
objective-setting process?
 3. Vision versus Mission:
The summary of organizational goals and objectives is in the two statements. The two serves
different purposes for an organization (Mullane, 2002) as discussed in the table below:

Figure 1: vision versus Mission:

Key Item words. Mission Statement Vision Statement
About It describes HOW to get to where you want to be. It summarizes WHERE you want to be. The values and
Objective and major purpose of the organization purposes of business are expressed.
related to customer need and team values are
explained.
Answer It responds to the question “what do we do? What It responds to the question, “Where do we aim to be?”
makes us different?
Time It talks about the present heading to the future. It talks about the future.
Function It outlines wide goals for the establishment of the It outlines where organization will see itself some years from
organization. The principal function is internal; that now. It motivates the firm to put in its best. It gives an
explains the salient organization’s success measure or understanding of the reason for the existence of the
measures and its principal audience is the leadership, organization.
team and stockholders.
Change It can change, but it must still be tied to the core As the organization evolves, it might be tempted to change the
values, customer needs and vision of the firm. vision. However, the statements describe the foundation of the
organization; therefore, there should be a reduction in change
to the minimum.
Developing a What are we doing today? For whom? Of what Where are we going? When are we getting to that stage? How
Statement benefit? That is to say, why we do what we do? What, are we going to do it?
For Whom and Why?
Features of an Reason and ethics of the organization: Who is the Should be clear, concise and unambiguous: Describing a happy
effective primary “client” (stakeholders) of the organization? future (Hope); Remarkable and interesting expression;
statement What are the duties of the organization towards accurate aspirations, possible adjustment with values and
them? culture of the organization.

Source: Taiwo, & Lawal, (2016)

4. Conclusion:
Significantly, this review assist us to understand that vision and mission statement lay emphasis on a
unique characteristics of the firm that creates a difference from other firms and assumes all future
activities planned for within and outside the community of the organization. It was discovered that vision
and mission statements are the map and delineating boundary that if intensely preached in any community
there will be achieved results.
Therefore, the development of vision and mission statements should not be the sole responsibility of
senior management, because for the organization to succeed, it depends on every stakeholder’s awareness
about where they are going. Organizations should know the difference between vision and mission
statements because they are both useful and they should be prepared before the commencement of
business operations and if possible should be updated if there is some required change in business.
Without a vision, is a people made naked”. This implies that vision is a custodian of color and beauty of
destiny (Oyedepo, 2015). Proverbs 29 (18a) says that “where there is no vision, the people perish”.

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