We live in a VUCA world. VUCA stands for Volatility, Uncertainty, Complexity and Ambiguity.
Volatility – living in a world that is constantly changing, becoming more unstable every day, where changes, big and small, become more and more unpredictable. Uncertainty – it becomes more difficult to anticipate events or predict how they will unfold. Complexity – issues and their implications are more multi-layered, harder to understand. Ambiguity – in today’s world, things are rarely completely clear or precisely determinable.
The impact of skills shortages, the energy crisis, Brexit, the war in Ukraine, inflation and disruptive technologies continues to be felt globally. Some international trade experts call it “the perfect storm”.
The demands placed on modern organizations and management are immense. There are so many distractions around us that it makes management continually anxious and easily blurred. Here comes the importance of vision, mission and values statements which have become even more crucial today due to the VUCA world we live in.
The stormier it is, the more important these statements are; they keep us stable on the pitch and focused on what we want to achieve and what we believe in.
Mission, vision and values statements are organizational statements that answer questions about who we are, what we value and where we are going.
The demands placed on modern organizations and management are immense-Konrad Cassar Naudi
A study by consultancy Bain and Company reports that companies with a clearly communicated, widely understood and collectively shared mission and vision have proven to perform better than those without, with the understanding that they do not. are related to effectiveness only when strategy and goals and objectives were also aligned with it (Bart, et al., 2001).
A vision statement is a future-oriented statement of the organization’s purpose and aspirations. A mission statement communicates the purpose of the organization and how it aims to serve its key stakeholders.
Customers, employees and investors are the primary stakeholders, but other stakeholders such as government or communities may be included due to social or environmental impact. Values are the beliefs of an individual or group, and in this case the organization, in which they are emotionally invested.
The benefits of having vision, mission and values statements are many, but here are a few of them:
• serve as a guide for employees’ actions and decision-making;
• improve performances;
• motivate and inspire employees;
• act as a unifying force and have a positive impact on organizational 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 an impact, they must be clearly communicated, widely understood and collectively shared with business stakeholders.
In conclusion, statements of vision, mission and values unleash the power of purpose. Imagine your employees coming to work every day, full of determination and conviction, firm believers in your organization’s values and passionately committed to its mission. Great things are about to 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 to global clients such as Volvo Car Corporation. He studied business management at the Glion Institute of Higher Education, Switzerland, and digital leadership at Boston University.
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