In today’s rapidly changing business environment, it’s more crucial than ever for organisations to have a clear direction and purpose. A well-defined vision, mission, and set of values serve as a compass guiding companies through challenges and opportunities. As a leader, I’ve witnessed firsthand how these fundamental elements can be critical to an organisation’s long-term success.

Lessons from Experience

After working with various businesses, I’ve observed a recurring pattern:

“I’ve worked in so many organisations today that I often see if the ‘foundation’ (Vision, Mission, etc.) doesn’t exist, it’s like building a house directly on the ground without a concrete slab… It’s possible, but over time, floors crack, walls become crooked, and while it’s doable, it’s often not enjoyable.”

This analogy perfectly captures the essence of the problem. Just as a house needs a solid foundation, an organisation needs a stable base to build.

More Than Just Words on Paper

More than having a vision, mission, and values written down in a company brochure is required. To be effective, they must permeate the entire organisation:

“An exercise to define this foundation doesn’t need to take long, but it needs to permeate the organisation, meaning that everyone ‘believes in what we’ve agreed to work towards.’ Then it becomes not just a paper product but a guiding principle that helps us in all decisions going forward and ensures everyone is pulling in the same direction…”

This perspective is supported by research. According to a study by Collins and Porras (1996), companies with a clear and consistent vision significantly outperform their counterparts over time.

The Benefits of a Clear Direction

1. Improved Decision

Making: When vision, mission, and values are clear, it becomes easier for employees at all levels to make decisions that align with the organisation’s overall goals (Bart et al., 2001).

2. Increased Employee Engagement:

Employees who understand and believe in the organisation’s purpose are more engaged and productive (Dhingra et al., 2021).

3. Stronger Organisational Culture:

A shared vision and values create a solid and cohesive corporate culture (Schein, 2010).

4. Enhanced Performance:

Organisations with a clear vision and mission tend to perform better financially (Kantabutra & Avery, 2010).

Implementation in Practice

Defining vision, mission, and values is just the first step. To truly build the “concrete slab” on which our organisation rests, we must:

1. Involve employees in the process of creating ownership.
2. Communicate consistently and frequently.
3. Lead by example and let values guide decisions at all levels.
4. Please evaluate and update if necessary to ensure relevance regularly.

Conclusion

In a world of constant change, a clear vision, mission, and values provide stability and direction. It’s not just an exercise in corporate rhetoric but a fundamental part of building a successful and sustainable organisation. Let’s ensure that our organisational foundation is strong enough to bear the weight of our ambitions and dreams.

References:

Bart, C. K., Bontis, N., & Taggar, S. (2001). A model of the impact of mission statements on firm performance. Management Decision, 39(1), 19-35.

Collins, J. C., & Porras, J. I. (1996). Building your company’s vision. Harvard Business Review, 74(5), 65-77.

Dhingra, N., Samo, A., Schaninger, B., & Schrimper, M. (2021). Help your employees find purpose—or watch them leave. McKinsey Quarterly.

Kantabutra, S., & Avery, G. C. (2010). The power of vision: statements that resonate. Journal of Business Strategy, 31(1), 37-45.

Schein, E. H. (2010). Organisational culture and leadership (Vol. 2). John Wiley & Sons.