Leadership begins with the creation of meaning and purpose for the firm with a convincing vision and mission. These are fundamental subjects relating to a firm’s beliefs and values. Therefore firms develop both vision and mission statement to guide what they wish to become (Vision) and define what is their business (Mission). The vision and mission statements enable clarity of purpose in the company and make statements about the firm to outsiders. Clear understanding of the mission and vision statements can greatly assist the process of understanding the firm’s strategies, objectives, and policies. Organizational success depends on a reasonable understanding of these issues.
Management needs to stress the importance of the current mission statement to employees, which explains the purpose and objectives of the firm. A mission statement is designed for both the employees and management of the firm. Strategic planning may require changing the mission statement to reflect a new direction of the firm. Stressing the benefits of the change can help employees and the public to agree into the change. It also facilitates employees’ comprehension on where their input tallies with the company’s objectives. It also helps other stakeholders decide whether they want to do business with the organization. A mission statement is also a statement of purpose that distinguishes one firm from other similar companies.