Vision, mission and values as a compass for modern leadership
An organization's mission statement - consisting of vision, mission and values - is far more than a decorative element of corporate communication or even an annoying "must have" on the company website. It serves as an orientation framework for leadership and cooperation, especially in times when framework conditions are changing rapidly and expectations are becoming more diverse. A well-understood and lived mission statement creates meaning, establishes identity and provides managers with a clear basis for decision-making.
How widespread and how "lived" are mission statements really?
Many companies have long since formulated a mission statement - but how comprehensible and effective are they really? An analysis by the University of Hohenheim of 120 mission statements of large DACH companies shows: The average comprehensibility score was only 8.5 points on the Hohenheim comprehensibility index (scale 0-20). Only 11 out of 120 mission statements achieved scores of 16 points or more and are therefore considered "easy to understand". More than half remained below eight points.
These results clearly show that although mission statements are widespread, their significance often falls short of their potential. They are too often formulated in abstract terms, full of buzzwords and therefore difficult to grasp. However, a mission statement can only provide orientation if it is clearly formulated, communicated in an understandable way and actually put into practice in everyday life. Especially in times of uncertainty and change, comprehensibility is a leadership quality - and a key success factor.
A good mission statement consists of three elements: Mission, values and vision. The mission and values form the so-called essence of an organization. Let's take a closer look at the individual components.
Mission - the meaning and purpose
The mission describes the fundamental meaning and purpose of an organization. It answers the question of why the company exists and what it basically does for its customers. It thus forms the North Star, which serves as a guide, as in seafaring, and at the same time describes the guard rails within which the company moves on its journey into the future.
A classic example is Walt Disney's original mission: "To make people happy." This phrase does not describe the specific actions, but the purpose that all activities serve. Whether films, theme parks or streaming services - they all bring this mission to life.
A clearly formulated mission has an effect both internally and externally. It creates identification, provides direction and enables decisions to be made in line with the purpose of the organization. It is important that the mission is authentic and leaves enough room for further development. Too narrow a formulation can unnecessarily restrict future opportunities.
Values - the framework for action
While the mission answers the why, the values provide orientation for the how. They describe the basic principles according to which the organization acts and thus form the framework for conduct, leadership and cooperation. Values such as trust, responsibility or courage are only effective if they are not only formulated, but actually lived.
Values cannot simply be defined or prescribed. They are basically already present in the organization - visible in typical decisions, in interactions with one another or in stories about successes. The task is to work out these values and reflect together on what they mean in concrete terms in everyday life. In addition, there are desired values that are important for future success, but are not yet anchored to the necessary extent. The aim is to further develop the organization in this direction.
Managers play a central role in this: they make values visible by exemplifying them. This is the only way to create credibility and the desired cultural impact.
Vision - the shared image of the future
While the mission should be valid in the long term and, together with the values, describes the essence of the company, the vision is a picture of the future at a specific point in time - e.g. in five to ten years' time. It represents the desired future and contains the major goals that should be achieved by then. The vision is usually better known and ideally formulated concisely in a short sentence, which forms the headline for the whole: Who or what does the company want to be in year XY and which visionary goal has been achieved?
The vision should be known to all employees and be described as comprehensibly and attractively as possible, as it serves as motivation: "Yes, let's work together to make this vision a reality!"
The job of managers is to break down the vision for employees and make it tangible: How can everyone contribute to achieving the big goal in their specific role in the company?
The mission statement as a management and cultural instrument
A coherent mission statement - consisting of vision, mission and values - forms the basis for a consistent strategy and clear external positioning. It also serves as orientation for employees and supports the selection of new talent that fits the culture.
The fact that culture and purpose are key decision-making factors in today's working world is underlined by the latest Stepstone × Kienbaum Study 2024, which shows that corporate culture, team culture and the purpose of the organization are among the ten most important workplace factors across all age groups. For many employees, the question of purpose and values has long been just as important as salary or career opportunities. A living mission statement creates the link here - between purpose, identification and attractiveness as an employer.
This makes it clear that it is not enough to simply write down vision, mission and values. It is crucial to formulate them clearly, communicate them authentically and live them consistently. Only then will they become a compass that provides orientation, motivation and cultural strength at the same time.
When vision, mission and values are in harmony with each other and are lived in everyday life, this common spirit is created - the basis for sustainable success and effective leadership.
How is the mission statement in your organization - does it serve as a compass and help you in your management work or would you like "a little more"? I look forward to your comments and a stimulating exchange!