Mission. Values. Vision. Strategy. What they mean and why they matter. | Issue #9
In this week's bulletin, I look at some key concepts for leaders and managers, the Chancellor's Spring Statement and more.
Welcome to ninth edition of The Leadership Bulletin.
The world of leadership and management is full of jargon - so much so, in fact, that words are often used without really thinking through what they mean. My focus this week is on four of the most used (perhaps even over-used) terms, the ideas they represent and their relation to each other. This week’s bulletin also includes a recommendation on business ethics, some highlights from the Chancellor’s Spring Statement and a feature on relaxing after work.
Let’s get started.
IF YOU WANT TO READ SOMETHING ON…
… business ethics, try The Ethical Capitalist by Julian Richer. Drawing on four decades of hands-on management experience, the founder of Richer Sounds argues that ethically run businesses are more efficient, more motivated and more innovative than those that care only about the bottom line. This book expands on some of the themes Richer has recently written about in the Sunday Times Business section. You can pick up a copy from my favourite bookshop, Blackwells, by clicking here.
MISSION. VALUES. VISION. STRATEGY.
Mission, values, vision, and strategy. Might they be four of the most used words in leadership and management? What concerns me isn’t how often they are used, but the way they are often used interchangeably. If you listen to many people, it’s as if mission is the same as vision, or indeed values, and they can all come under the title of strategy. But they are fundamentally different concepts and I believe leaders and managers need to be clear about what each of them means in their organisation.
Let’s start with the definitions. Here’s my brief summary of what each concept means:
Mission. Your mission is the very reason why you exist. This might be what you do, who you support, or what you facilitate. But the key thing is that a mission goes right to the heart of why your organisation was founded and continues to operate today.
Values. Values are about the principles that underpin the way you approach your mission. It may be that you choose to work in a collaborative way, or that Corporate Social Responsibility is built into the way you do business. Each organisation will have different values and they should define the way you approach your mission.
Vision. Your vision should be expressed as a brief and concise statement of what your community, country or even the world will look like if you succeed in your mission. This should be fairly specific, so you can measure yourself in the months and years to come against what you aimed to achieve.
Strategy. Finally, your strategy is the detailed plan of how you will make your vision a reality, implementing your values and fulfilling your mission. This will be where your approaches to product development, marketing and much more come together to ensure that you are a thriving organisation that achieves its goals.
Hopefully that shows how each of these terms means something very different. I recommend that you think about each of them for your organisation and use them as the basis for communicating with your team about the future. Focus on achieving a workforce where everybody - especially leaders and managers - knows why you exist, what values you hold, where you want to get to and how you’re going to get there.
I’ve made this infographic as a takeaway resource you can use to achieve this.
THE SPRING STATEMENT - WHAT DOES IT MEAN FOR BUSINESSES?
The Chancellor’s Spring Statement last week contained some major news for businesses, both for this year and in the years ahead. The key headlines for business leaders included:
The NI contribution threshold is going up by £3,000, equalising the threshold across income tax and NI payments.
Employment allowance for smaller businesses is going up to £5,000 - this is a tax cut on the cost of employment worth up to £1,000 for eligible small business.
A rethink of R&D tax reliefs is coming, probably in the Autumn Budget, to tackle the relatively low levels of innovation in the UK economy. Tax rates on business investment are also likely to be cut in the Autumn.
What does this mean overall? That after the Coronavirus pandemic, and several recently announced tax rises (including on corporate profits and NI), the mood music on taxes is beginning to change. The review into R&D tax reliefs is a significant opportunity to re-think how we incentivise innovation and growth in the UK. I hope the Chancellor seizes this opportunity to prime the UK economy for higher productivity and growth. After all, that’s the only real way to enrich our country and pay for the world-class public services we need.
HOW DO YOU WIND DOWN AFTER A BUSY WEEK?
Switching off and winding down after a busy day or week is critically important. Taking our minds off work is good for our mental health, creativity and focus. Last week, I took myself off to Cleveleys Beach in Lancashire for fish and chips and a walk along the seafront in glorious sunshine (see the sunset scene below). But I want to know how you like to relax after a busy time at work. Let me know via lee@edfolio.co.uk and I’ll share my favourites in a future newsletter.
29 March 2022