Vision statement is a succinct piece, describing the desired future state of the company throughout the years, i.e. in 5, 10, 20 etc. It is the guidance that will enable each worker to find his or her place not only within the company’s present state but within its future as well. Hence, it is crucial that everyone is not just aware of the vision statement, but that they also completely understand it. Namely, approximately 70% of employees have stated that they do not fully understand their company’s strategies and vision (Harvard Business Review). This lack of clear company vision often leads to a loss of talented employees, as some highly talented employees are not going to waste their time and talent within a company that does not have a clear goal in mind.
Furthermore, a poorly written vision statement, or the lack of it altogether, often results in strategies and practices that are counterproductive, sometimes leading the company to achieving failure rather than success.
The importance of vision statement has also been proven by Bain and Company’s study, which has shown that the organizations with clearly defined vision statements conducting perfectly aligned practices with it, outperform the companies that lack a vision statement.