Purpose, Vision & Mission: Do We Really Need Them All?

Purpose, vision and mission statements. It can all get a bit confusing.

Do we really need them all?

Across the business landscape, companies can interpret the use and application of these terms a little differently. Some may just have a purpose, some a vision statement. Some have a mission and a vision statement, some have all three.

On top of that, the definitions of each change from company to company. 

How can any of these terms be useful when they are interpreted so differently? It can all sound a bit like jargon.

It’s no wonder consumers are becoming more savvy and inquiring around the authenticity of the term ‘purpose’, and doing their homework before making purchases to ensure companies are genuinely operating to these statements.

Back to the burning question - do you actually need all three definitions to run a successful organisation or company? Let’s first define what each of these statements are.

DEFINING THE STATEMENTS

1. Purpose - the Why 

Purpose is the core of the company. It is the why, the reason your company exists before it even generates revenue. Purpose is the lens for which all decisions in the company are viewed from. 

In today’s global business landscape, without purpose, or the guiding ‘north star’, companies can become misaligned and siloed. Further, consumers, investors, employees and other key stakeholders expect companies to operate from a core of purpose. 

Due to these global trends, purpose is now also a core strategy for profit and growth based on linking your company’s reason for existence to improving lives and positively impacting society. 

How purpose is applied: Purpose guides direction, strategy, decision making, focus and creates a positive work culture. 

2. Mission - the What 

If you now know why you exist, what are you planning to do to fulfil your purpose? What steps need to happen to make this a reality across the company? 

Introducing...the mission.

The mission is embedded in the day to day of a company. It’s what everyone in the company focuses on each day to achieve the shared vision and fulfil the company purpose.  

How mission is applied: Mission is achieved by embracing the company values. Values are the actions, attributes and behaviours expected of every employee. 

3. Vision - the Where 

The vision is an aspirational and forward looking statement of where the company is headed, and where it will have impact in the future by fulfilling its purpose.

Put simply, it’s a statement of success.

How vision is applied: the vision is a succinct articulation of how your purpose created a better future, and what that future will look like.

4. Values - the HOW

Values articulate a company’s moral compass, and places clear expectations of the behaviours it wishes its people to embrace to create a positive work culture.

Uniting people through shared values is aligned with fulfilling purpose.

PURPOSE, MISSION AND VISION - DO WE NEED THEM ALL?

Back to the question from where we started. 

In essence, purpose, mission and vision are all about people. From your leadership team, to the people that have joined your company, or the talent you wish to attract. From your investors, to your suppliers to the public. 

So do you need statements for all three?

Absolutely.

A short statement explaining each element easily and transparently communicates the aspirations, strategy, culture, operations and direction of your company - and how these work together to make the world a better place.  

And in 2021, this makes your company and brands trusted more by customers, which influences purchasing decisions.

References:

• https://www.theworddepot.com.au/blog/purpose-brands-driving-change-are-trusted-more

• https://www.theworddepot.com.au/blog/measuring-purpose-its-actually-a-thing

• https://www.theworddepot.com.au/blog/purpose-and-work-alignment-is-key

• https://www.theworddepot.com.au/blog/whats-the-difference-between-brand-purpose-an-organisational-purpose

• https://simonsinek.com/commit/the-golden-circle

• https://enactingpurpose.org/assets/enacting-purpose-initiative---eu-report-august-2020.pdf