What’s the point of strategic planning exercises that ask you to create a vision and mission? I’ve spoken to many people over the years who have become cynical about the shenanigans that go on when companies or organizations declare they’re going to host a retreat to discuss the company’s vision and mission. I’ve personally sat in on a number of sessions that made me giggle at how seriously everything was being taken. So why do I persist in encouraging business owners to make sure they have a clear and realistic vision and mission?

Because otherwise, you’re just going through the motions. You’re just in a job. You may be the boss, but without an idea for how you’re going to grow (personally, professionally, profitably), you are simply marking time until retirement. And where’s the fun in that?

Let’s draw the distinction between vision and mission. There are as many definitions as there are consultants out there, so here’s my version: a vision looks to the future, to a state of the world or the community or just a life that is somehow better, bigger or nicer than today. What do you hope to bring about through your actions? Vision statements are Big Hairy Audacious Goals, and they give us a reason to feel connected to our fellow beings. Mission statements define your purpose today in terms of your relationship to people (customers, employees), the marketplace (suppliers, competitors).

In my strategic planning sessions I tend to focus first on a vision, and next on values. I’ve blogged on the importance of values previously, but I’ll reiterate here that having and articulating a set of values to guide the actions of your company helps to attract, retain and motivate your team members as well as distinguish yourself for your customers. From vision and values you can set a mission statement, and then begin the weighty task of setting goals.

Goal-setting can occur as random exercise in setting up pie-in-the-sky statements and then crossing your fingers but not caring much about whether they’re met. Bzzzt wrong. You’ve got a vision – now working backwards from there, what do you need to be achieving today, tomorrow and next year to get closer to your vision? What dimensions should you be measuring to keep on track to that vision? What metrics are crucial to keeping the business afloat with cash flow? These are the goals that need to be set and then managed to make for a successful strategic plan.

Getting vision, mission, values and goals can easily take a full day or even two days in a group discussion. They’re not topics which should be decided lightly – they require deliberation, and the discussion often benefits from an objective third party who’s willing to play devil’s advocate and disruptive force. That’s where a consultant or facilitator can be helpful.

Does strategic planning translate to the bottom line? In some ways, it does so directly, by focusing the organization on mission-critical activities and helping to filter out chaff and distraction. More importantly, strategic planning helps to position what the bottom line is really there for. It’s nice to be profitable of course… but it’s even better to be profitable for a reason.