We are living in a VUCA-world. VUCA stands for volatility, uncertainty, complexity and ambiguity.
Volatility – living in a world that is constantly changing, becoming more unstable each day, where changes big and small are becoming more unpredictable. Uncertainty – it is becoming more difficult to anticipate events or predict how they will unfold. Complexity – problems and their repercussions are more multi-layered, harder to understand. Ambiguity – in today’s world it is rare for things to be completely clear or precisely determinable.
The impact of the skills shortage, the energy crisis, Brexit, the war in the Ukraine, inflation and disruptive technologies continues to be felt globally. Some international business experts call it “the perfect storm”.
The demands on modern organisations and management are immense. There are so many distractions around us that this makes management continuously anxious and easily out of focus. Here comes the importance of vision, mission and values statements which have become even more crucial today due to the VUCA-world we are living.
The stormier it is, the more important these statements are; they keep us steady on the ground and focused in what we want to achieve and what we believe in.
Mission, vision and values statements are statements from the organisation that answer questions about who we are, what do we value, and where we are going.
The demands on modern organisations and management are immense- Konrad Cassar Naudi
A study by the consulting firm Bain and Company reports that firms with clearly communicated, widely understood, and collectively shared mission and vision have been shown to perform better than those without them, with the understanding that they are related to effectiveness only when strategy and goals and objectives were aligned with them as well (Bart, et al., 2001).
A vision statement is a future-oriented declaration of the organisation’s purpose and aspirations. A mission statement communicates the organisation’s reason for being, and how it aims to serve its key stakeholders.
Customers, employees and investors are the key stakeholders, but other stakeholders like government or communities can be included due to the social or environmental impact. Values are the beliefs of an individual or group, and in this case the organisation, in which they are emotionally invested.
The benefits of having vision, mission and values statements are many, but the following are a few of them:
• act as a guide for employee actions and decision making;
• improve performance;
• motivate and inspire employees;
• act as a unifying force and has a positive impact on organisational effectiveness;
• facilitate collaboration;
• less employee attrition;
• attract talent.
These statements should not be constructed just to place them on the company’s website. To have impact they have to be clearly communicated, widely understood and collectively shared with the company’s stakeholders.
In conclusion, vision, mission and values statements unleash the power of purpose. Imagine your employees going to work each day, full of purpose and conviction, and strongly believing in your organisation’s values and passionately committed to its mission. Great things will happen!
Konrad Cassar Naudi is a training and management consultant. He recently returned to Malta after working in England, France, Ireland, Switzerland, Scotland and Sweden. He has worked as a management consultant with global clients such as Volvo Car Corporation. He studied Business Management at Glion Institute of Higher Education, Switzerland, and Digital Leadership at Boston University.