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funnel you find the strategy —it is clear and explicit about what the firm will do, and
not do, to achieve the vision. Vision statements also provide a bridge between the
mission and the strategy. In that sense the best vision statements create a tension and
restlessness with regard to the status quo—that is, they should foster a spirit of

continuous innovation and improvement. For instance, in the case of Toyota, its
“moving forward” vision urges managers to find newer and more environmentally
friendly ways of delighting the purchaser of their cars. London Business School
professors Gary Hamel and C. K. Prahalad describe this tense relationship between
vision and strategy as stretch and ambition. Indeed, in a study of such able
competitors as CNN, British Airways, and Sony, they found that these firms
displaced competitors with stronger reputations and deeper pockets through their
[9]
ambition to stretch their organizations in more innovative ways.
Third, mission and vision provide a high-level guide, and the strategy provides
a specific guide, to the goals and objectives showing success or failure of the strategy
and satisfaction of the larger set of objectives stated in the mission. In the cases of
both Starbucks and Toyota, you would expect to see profitability goals, in addition to
metrics on customer and employee satisfaction, and social and environmental
responsibility.
KEY TAKEAWAY
Mission and vision both relate to an organization’s purpose and
aspirations, and are typically communicated in some form of brief written
statements. A mission statement communicates the organization’s reason for
being and how it aspires to serve its key stakeholders. The vision statement is a
narrower, future-oriented declaration of the organization’s purpose and
aspirations. Together, mission and vision guide strategy development, help
communicate the organization’s purpose to stakeholders, and inform the goals
and objectives set to determine whether the strategy is on track.
EXERCISES
1. What is a mission statement?
2. What is a vision statement?
3. How are values important to the content of mission and vision
statements?
4. Where does the purpose of mission and vision overlap?
5. How do mission and vision relate to a firm’s strategy?
6. Why are mission and vision important for organizational goals and
objectives?

4.2 Mission and Vision in the P-O-L-C Framework
LEARNING OBJECTIVES
1. Understand the role of mission and vision in organizing.
2. Understand the role of mission and vision in leading.
3. Understand the role of mission and vision in controlling.
Mission and vision play such a prominent role in the planning facet of the P-O-
L-C framework. However, you are probably not surprised to learn that their role does
not stop there. Beyond the relationship between mission and vision, strategy, and

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