When vision is clear, strategy is easy.

Vision and Strategy are foundational concepts and key drivers of any successful organization. They create a sense of purpose and shape organization’s future. At the same time, Vision and Strategy are also often used interchangeably, causing confusion. Let us reflect on what these terms really mean:

It outlines the forward-looking view of the organization’s aspirations. Its visualization of what end state should look like. In a way, it defines what success of the organization looks like. Vision is the answer to few critical questions like: ?What is the aim of your business? Where would your business be if everything went accordingly? What impact you want to bring to the people using your product/service? Vision acts as the beacon of inspiration and motivation. A vision statement sets an organization’s sights on the future.

A well-articulated vision statement creates a sense of purpose and unity, driving everyone towards a common destination. It sets the tone for the company's culture and acts as a compass for decision-making. A vision statement guides our decision-making and help us stay focused to meet our long-term goals. ?

When employees connect with a shared vision, they are more engaged, committed, and motivated to work towards its realization. In fact, employees who find their organization’s vision meaningful show engagement levels of 68%, a considerable 52% higher than employees who don’t. Based upon research (Organizational Alignment Research Model | LSA Global) ?of 410 companies across 8?industries,?highly aligned companies grow revenue 58% faster and are 72% more profitable.

If an organization doesn’t have a vision or a clear idea of what it wants, it will greatly limit its opportunities and have a difficult time inspiring employees to stay committed.

A vision statement can be a highly effective tool to keep an organization on track. Organizations that enjoy on-going success have deeply rooted core values and unwavering vision in place, while their business strategies adapt to the ever-changing world. Here are few examples of the vision statements of few well known organizations:

While vision sets the destination, Strategy outlines the chosen path to reach the destination. Strategy helps to bridge the gap between current and the desired state.

Organizations do not operate in a vacuum.? There are many factors which play critical role in formation of a strategy. Some of these common factors include culture, Technology, Law & compliance, Stakeholders, market conditions, revenue aspirations, Risk management etc. ?strategizing provides that type of preparation requires to success. Strategy is guided by the vision. Strategy is guided by the vision. When vision is clear strategy is easy.

Strategic management is a process for formulating and implementing a strategy. For a newbie working on strategy ‘strategy diamond’ approach is great hack to quickly formulate a strategy to begin discussion. The Strategy Diamond is a useful tool if you wish to quickly formulate a strategy or summarize an exciting strategic plan.?The strategy diamond was developed by strategy researchers Don Hambrick and Jim Fredrickson as a framework for checking and communicating a strategy.

It is evident that the Vision and strategy have very distinct value proposition. Vision defines ‘what’ is to be accomplished, whereas strategy lays the foundation of framework for ‘How’ to accomplish.

Good luck to everyone for crafting the right vision and carving out the appropriate strategy, as we are ‘ringing in the new year’.