# Vision Statement: Meaning, Concept and Example A vision statement is a clear and inspiring declaration of what an organization wants to become or achieve in the future. It describes the desired long-term position of an organization and provides a broad direction for its activities, decisions and development. A vision is future-oriented and helps managers, employees and other stakeholders understand the ultimate purpose and direction of the organization. In the managerial and systems approach, a vision statement is particularly important because an organization is viewed as an integrated system whose different parts must work together toward common objectives. A vision statement answers the basic question, “Where do we want the organization to be in the future?” It is different from a mission statement. A mission generally explains the present purpose of an organization, what it does, whom it serves and how it creates value, whereas a vision expresses the desired future state. For example, a hospital may have a mission of providing accessible and quality healthcare, while its vision may be to become the most trusted and patient-centred healthcare institution in the region. The concept of vision is closely related to strategic management. Organizations operate in an environment characterized by technological changes, competition, changing customer expectations, economic conditions and social developments. Managers therefore need a long-term perspective while making decisions. A vision gives them such a perspective. It acts as a guiding framework for strategic planning, resource allocation, organizational development and performance improvement. From the managerial approach, a vision statement is an important instrument of management because managers have to coordinate human, financial, physical, technological and informational resources. Without a common direction, different departments may pursue conflicting objectives. A well-defined vision creates unity by communicating what the organization ultimately seeks to accomplish. It helps managers align departmental objectives with organizational goals. For example, the marketing department, production department, finance department and human resource department can develop their individual plans while remaining focused on the same long-term organizational vision. The systems approach provides another important way of understanding a vision statement. According to the systems approach, an organization is not merely a collection of separate departments. It is an open and interdependent system consisting of various subsystems that interact with one another and with the external environment. Inputs such as people, capital, technology, materials and information enter the organization; organizational processes transform these inputs; and outputs are produced in the form of goods, services or social outcomes. Feedback from customers, employees, regulators and society influences future activities. A vision provides an overall direction for this entire system. For example, if an organization has a vision of becoming a leading provider of