The importance (benefits) of vision and mission statements to effective strategic management is well documented in the literature, although research results are mixed. As indicated in Academic Research Capsule 2-1, there is a positive relationship between mission statements and measures of financial performance.
In actual practice, wide variations exist in the nature, composition, and use of both vision and mission statements. King and Cleland recommend that organizations carefully develop a written mission statement in order to reap the following benefits:
To make sure all employees/managers understand the firm’s purpose or reason for being.
To provide a basis for prioritization of key ...