Company vision – what is it and how do you create it?

A company vision is an inspiring picture of the future that serves as a reference point for both employees and owners of an organisation. It shapes all actions and decisions made. Whether you run a small local business or a large enterprise, understanding how to properly shape a company vision can be crucial to business success.

From this article you will learn:

• What is a company vision?
• How is a company vision different from a company mission?
• How to create a company vision?
• What is the importance of a company vision?

Company vision – definition

A company vision is a statement that aims to define how a company sees its future and long-term development. With the help of a vision statement, you can clearly state your aspirations and show your audience the future direction of your business. The vision should include information on how the company would like to be perceived in the future, how it intends to make a contribution to society and the environment through its activities and what benefits its activities will bring to customers.

A company vision is a statement that includes a future view of the company, a plan for its development and its anticipated impact on its environment.

What is a company vision?

A corporate vision therefore shapes the way in which a company communicates with its audience and shows customers, and employees, why a long-term relationship with the organisation is worthwhile.

Company vision versus company mission

Both the vision and company mission statement are elements through which the aims and direction of an organisation can be defined. So what is the difference between a mission and a vision? A company’s mission is a definition of its current objectives and activities. A company’s vision, on the other hand, is a description of where the organisation would like to be in the future, how it sees its development and its future impact on the environment. A vision statement is therefore forward-looking in nature, whereas a company’s mission statement focuses on the present aspects of its activities.

Creating a company vision

To create a company vision, remember to:

• Understand the organisation’s business objectives – the vision should be consistent with the business objectives the company wants to achieve. Consider both short-term and long-term goals.
• Know your market and competitors – understanding the industry you operate in and knowing your competitors will give you an edge and allow you to better target your company’s strategy. This allows you to create a vision that stands out from your competitors.
• Include your company values and culture – your vision statement should reflect the values and culture within your company as much as possible. This will ensure that it is consistent with the overall character of the company and the attitudes it values, which will increase employee motivation and attract the attention of potential customers.
• Adopt an ambitious yet realistic attitude – the vision should be ambitious, but not so ambitious that it is considered unrealistic to achieve.
• Think long term – a company vision is a visualisation of where the company wants to be in the future. Therefore, take a long-term view and consider what your organisation should be achieving in a few years’ time.
• Communicate the vision to the team – the whole team working for the success of your company should know the direction you want the organisation to develop. By making your employees aware, you can expect them to be fully engaged and motivated in the pursuit of your goal.
• Adapt the company vision to changing conditions – as time passes and individual goals are achieved, the company vision should change – this will help the organisation to continually evolve.

Importance of the corporate vision

A properly formulated corporate vision is crucial for a company. Among other things, it allows for:

• Targeting your activities – knowing where you are going will make it easier to get there. The company vision, on the other hand, is a kind of signpost that sets the direction of the organisation.
• Increasing employee motivation and commitment – employees who know, understand and believe in the company’s vision are more committed to its development because they feel they are part of the organisation and know where their efforts are supposed to lead.
• Creating a positive organisational culture in a company – the company’s vision is also reflected in the company culture. If the values shared by colleagues are in line with those on which the company is based, the organisation has a culture based on cooperation, mutual respect, readiness to help, support and mutual trust.
• Investor interest – the company’s vision is also important for potential investors. It demonstrates the potential of the company, which can translate into new collaborations and investments.
• Standing out in the market – a well-constructed vision allows a brand to stand out from the competition. In addition, if recipients share similar values, they may also identify with the company in some way, making it memorable. As a result, they will be eager to use and return to its services.
• Achieving long-term success – a clearly defined company vision sets the direction of the company, continually supports it, increases employee motivation and attracts the attention of consumers and investors, which in the long term translates into business success for the organisation.