Mission vs. Vision Statement: Understanding the Differences

Mission and vision statements are imperative for every business to incorporate into their business plan; these short, compact phrases outline the heart behind the company, as they present their goals and how they'll proceed and why. These two terms are sometimes used interchangeably, but the differences are key to understand, as they guide divergent avenues. Your business should create both a mission and vision statement that governs its values and goals.

What Are the Differences Between Mission and Vision Statements?

Mark Moses, the business coach who authored the book Make Big Happen: How To Live, Work, and Give Big, does a great job of clearly outlining the differences between mission and vision statements.

"One of the key components of any business plan is the organization's vision. Your vision defines your company's goals and ambitions and should be ingrained into your organization's culture and environment. Without a clear vision in place, how will your team know what to work toward? Your company's vision statement sets the tone for the goal your organization is trying to achieve in the future. It's important not to confuse your vision statement with your mission statement. Your mission statement is different in that it defines what your business does, including its objectives and how they will be reached. Your vision statement is forward-thinking, while your mission statement defines the business of your company. Vision is your 'What.' A mission statement is your 'Why.' If the CEO doesn't have a clear vision for where the company is going, then who does? Communicating vision and strategy to your team will get them on board and help you take your company to the next level," says Mark Moses, Founding Partner of CEO Coaching International.

What Should You Include in Your Vision Statement?

Operating from the understanding that the vision statement can be condensed into the question of 'what' the company is or does, as Moses recommends, the obvious next question is how you can write a statement that gives a clear picture of the answer. What details should you include? The co-founders of prescription allergy medication delivery company Cleared speak to this question.

"Share your goals for the company in your vision statement in a way that doesn't limit your vision but speaks specifically about the objectives. You don't need to limit your vision statement to small goals or dreams (Walmart's vision statement is 'To become the worldwide leader of all retailing,' a decidedly lofty goal) but it does need to be narrow enough to hone in on the most important aspects of the goal," says Ryan Rockefeller, Co-Founder of Cleared.

If you want your vision statement to go further than simply detailing the facts and be one that inspires, there are certain steps you can follow, beginning with writing your statement with the audience in mind. Chris Vaughn, the CEO of cannabis delivery company Emjay, shares the considerations you can't neglect if you want to inspire with your vision.

"Before you can write a compelling vision statement, you have to know what vision statements do and who they're written for. Write your vision statement in order to keep employees and management currently employed at the company on the same page about its mission and goals. Another major audience of your statement that you want to appeal to are those considering whether they want to apply for your company, and those who want to partner with you. With this audience in mind, your vision statement needs to be an inspiring picture of where your company intends to be in the future based on its goals, and what it is willing to do to make that happen. Use powerful, actionable language that motivates current and future employees to join in the shared mission of taking the company where it aims to go. Be precise in your wording so the statement is as specific as possible. There can be no room for uncertainty-your vision statement is your map to where you want to go," says Chris Vaughn, CEO of Emjay.

What Should You Include in Your Mission Statement?

Your mission statement is your purpose for operating. It addresses your goals in the same way vision statements do, but its focus is also on elaborating how the company operates and why. The founder and senior editor of the personal training certification company PTPioneer addresses a few key inclusions that will help you craft your mission statement.

"When you first pitch your business, you have to explain your goals and values, and how you'll manage these things. After your company is established, don't think you no longer need to express who you are and what you offer your customers. When people visit your site, they want to know the basics about your company. Surely you've visited a company website's About page before. Think of the information you want to know about a business when you navigate to this tab. Your mission statement should say who you (your company) are, what you envision for the future, and why you are passionate about your mission in a succinct way," says Tyler Read, Founder and Senior Editor of Personal Trainer Pioneer.

The process of narrowing down what to say in your mission statement is not always an easy one if you don't know what to focus on. Chris Bridges, the CEO of the VITAL credit card, suggests how to start this process.

"You're probably pretty passionate about your business. If you weren't, it wouldn't be in good hands, because passionate people are the ones who push businesses forward. With all the excitement you feel about your company and what you do, you likely have a difficult time narrowing down the most key aspects to share in your mission statement, although you want to convey the pertinent information in concise language. Give yourself the chance to write down everything that matters to you about the company, and then once it's on paper, go through what you've written and compile the pieces that speak to its core values, your company's actions, and its methodology," says Chris Bridges, CEO of VITAL.

For anyone still not sure what exactly to say when writing their mission statement, the CMO of Schwartzapfel Lawyers, Max Schwartzapfel, provides a simple blueprint for what to include.

"Mission statements are easy to create when you understand the key categories they are meant to address. A simple way to look at it is what your company does, how it goes about doing this, and what the reasons are for doing it. You don't need to be too complex in your mission statement, as it's meant to offer an easily understood picture of your business," says Max Schwartzapfel, CMO of Fighting for You.

Who Needs a Mission Statement?

Companies need both a vision and a mission statement in order to ground them in their forward-thinking goals and represent who they are/what they do to customers and partners. However, William Arruda, the branding consultant for Reach Personal Branding and author of the book Digital YOU: Real Personal Branding in the Virtual Age, recommends that individuals also build their own personal mission statements as a way of centering themselves and sharing a compact outline of who they are as a professional.

"If you want to be successful, you need to think of yourself as a personal brand. A personal mission statement is a critical piece of your brand because it helps you stay focused. We all have super powers-things we do better than anyone else. These things often feel natural to us, but it's important to see them as being special. This is your core DNA-your operating principles. These are the things that inspire and energize you. As we get older, we have more life experiences and acquire new skills. If your mission statement doesn't change, you risk not being relevant any more. The more you share, the more support you get to achieve your mission. Friends and mentors can support you or call you out if you're doing something counterproductive," says William Arruda, Personal and Social Branding Consultant of Reach Personal Branding.

Why Do Personal Statements Matter?

Rachel Blank, the founder and CEO of Allara Health, a virtual care team for polycystic ovary syndrome, reminds that in some way everyone who is active on social media already has experience with branding themselves in a similar manner to the way you should brand yourself with a mission statement.

"We all present ourselves as brands in the modern age of technology, even though we might not realize we do it. Think of social media. The way you portray yourself through images, statements, and your likes and dislikes is all a form of branding. And yet, there are more layers to yourself than you present on the internet, but you choose which pieces of yourself are most relevant for your audience and share those to create a one-sided vision of yourself. Branding yourself professionally online follows a very similar pattern, but you focus on the qualifications, experience, and skills that are most relevant to your professional persona. In order to come across as a human with cares, passions, and beliefs, make sure you include these things in the picture you provide. These details are what make others believe in you too; anyone who doesn't have goals and convictions has no reason for their hard work," says Rachel Blank, Founder and CEO of Allara.

One answer, therefore, to the question of why mission statements matter is that they show the heart and passion behind a person or company in a way that draws others to them. Jae Pak, M.D., a degreed engineer and the founder of the self-named medical practice Jae Pak elaborates on this idea and the way that being real matters.

"Humans connect to human emotions because these are universal experiences. So when you see someone's feelings, such as the things they love and believe and stand for, you immediately relate deeper to them. Sometimes the business world and the people operating in it come across as cold or distant, but every company is made up of people at the center. The best thing you can do as a business or professional struggling to make deeper connections with your customers or peers is to show your human side. Sharing a personal representation of what you care about and why goes a long way in making yourself more personable. The same is true in all aspects of life, not just the professional realm," says Jae Pak, Founder of Jae Pak MD Medical.

Why Do Vision Statements Matter?

The CEO and founder of Bounce, a worldwide luggage storage company, speaks on why vision statements matter, citing the way that companies need to always be moving forward and broadening their goals for themselves in the future.

"Your vision statement is your announcement to the world that you have goals for your company and intend to keep moving forward to achieve them. As the famous quote says, when you stop growing and learning, you stop living. The same is true with your business. You need to show your employees and those interested in working with your company that you have no plans of being stagnant. As such, your vision statement should regularly update to reflect the growth you've made and what your new goals for the future include," says Cody Candee, Founder and CEO of Bounce.

Takeaway

Although sometimes confused as being the same, mission and vision statements have unique and important objectives. Every company that wants to narrow in on its goals for the future and purpose for operating needs to stay up to date on its statements. Let your company present how far it has come and how it will continue to grow.