What is a vision statement?

A "vision statement" is a forward-looking statement developed at the executive management level of a company. The vision statement paints a broad picture of the objectives and direction of the business, which leads to the formulation of goals, strategies and tactics.

One common motive of a vision statement is to inspire leaders and regular workers in an organization to work toward shared goals. The other point is to create alignment within work teams so that all employees recognize how their work contributes to department, division and organizational goals. Vision statements are distinct from mission statements in that they provide a direction rather than a purpose for operation.