Company Vision and its Connection to Motivation, Engagement, and Performance

The definitions of company vision vary but they all contain elements of an ideal future state. Vision is a desired state of products, services and an organization that a leader wants to realize (Shuck and Rose). It is an idyllic and distinctive representation of the future. Vision is a desired state that represents or echoes the collective values of an organization. A vision helps define why people should, and how people will, act with regards to performance, decisions, and dealing with conflict.

Empirical evidence about the connection between vision and performance is mounting. CEOs with a vision significantly outperformed CEOs that were not leading their organization with a vision. A study of mergers and acquisitions (M&A) demonstrates that vision is a critical factor leading to successful performance, particularly during initial phases of M&A when companies are expected to recover acquisition costs and generate a return on investment. Neff demonstrated the positive correlation between vision and the success of family businesses. Vision was also highlighted as a determining factor that enables daughters to overcome gender bias and become successors in family businesses. A longitudinal study by Baum et al. found a causal effect of vision and vision communication on organizational-level performance. The directional effects in their study support that vision is an impactful factor in company performance.

Vision drives motivation and is connected to both motivation and engagement through the work of Boyatzis and Akrivou who validated that vision, at both the individual and organizational levels, is a key element in successful, sustainable change which drives engagement and meaning.

Even more effective is a shared vision which allows for the incorporation of different perspectives within the organization, creating buy-in and support.

The concept of a personal higher purpose, introduced by Duffy and Sedlacek as one in which the benefactors are not themselves, could be applied to organizations. The concept is that a higher purpose vision positions a company to build a financially sustainable organization that creates both social good (e.g., making the world a better place) and social capital (e.g., trusting and committed relationships with all stakeholders). A higher purpose goes beyond generating only profits and shareholder value.