The Importance Of The Mission And Vision Statement Of An Organization

Short Overview The mission statement of an organization is the first item than an investor will see when they are researching organizations to invest in. This is typically the initial statement on documents that investors utilize to gauge the success of companies. “The mission statement is a crucial element in the strategic planning of any business organization” (Rajasekar, 2013). The vision statement is typically closely related to the mission statement, but the vision statement tells the employees where they are going and how they will get there. Proper planning is directly related to the mission and vision statements. It is known as the first function in management. While planning is directly related to the mission and vision statements,

With a strong mission statement, managers will be able to properly plan to help the organization achieve its goals for success. With an intelligent vision statement, an organization’s employees will know what their goals are so that they can monitor their success. When an employee can monitor their own progress through their successes it will help to motivate and begin planning to achieve their next goals. Throughout the entire process, the managerial function of controlling is key to “effectively monitor progress towards an objective.” (Satterlee, 2013) When each of these are done properly an organization will know their exact position in regards to their written goals and

An organization’s management must properly plan for the future in order for the organization to achieve success. A manager can tell employees that they want to reach a million dollars in sales, but without a product to sell there will be no way to reach the goal. Proper planning allows managers to establish a set of goals for employees to reach so that they can fulfill the mission statement while also keeping employees engaged. The best way to maintain employee motivation is by setting challenging, but attainable goals. This ensures organizational success and decreases the potential for failures. An organization can utilize the concept of backwards planning, by first establishing their mission statement and then setting goals on how to get