Lokesh Nigam
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March 16, 2023
A study conducted by Bain and Company many years ago reported that around 90% of the 500 firms they surveyed had some form of mission and vision statement. The study also found that firms who had clearly communicated, widely understood and collectively shared mission ad vision performed better than those without them, provided their organisational strategy, goals and objectives aligned with them as well.
While the importance and purpose of mission and vision statements may not be the same today as they were back then, the organisational purpose, mission, and vision are intricately linked and collectively influence values and employee commitment. But how does the role of leadership and a leader fit into this party?
Leaders play a critical role in holding these four components together. They must ensure that the organisation’s strategy aligns with its vision and purpose and that employees are committed to achieving the objectives. By doing so, leaders can create a sense of shared purpose and direction within the organisation, enabling employees to work towards a common goal.
A leader is responsible for setting the direction and tone of the organisation, creating a vision, developing strategies to achieve it, and ensuring a positive work environment. They significantly impact employee engagement, motivation, and commitment and create and maintain the organisational culture.
The role and influence of a leader in an organisation are critical to its success. According to a study by the Harvard Business Review, “Leadership is the single most important factor in driving organizational success” (HBR, 2017). Leaders are responsible for setting the direction and tone of the organisation, creating a vision, and developing strategies to achieve it.
Leaders also significantly influence employee engagement, motivation, and commitment. A study by Gallup found that “70% of the variance in employee engagement scores is attributable to managers and team leaders” (Gallup, 2020). Leaders who prioritise employee engagement and create a positive work environment can significantly impact employee performance and retention.
Moreover, leaders are responsible for creating and maintaining the organisational culture. As stated in an article by the Society for Human Resource Management, “Leaders create culture through their behaviours, attitudes, and actions” (SHRM, 2021). The culture of an organisation can have a significant impact on employee behaviour, productivity, and overall performance.
The leadership in an organisation plays a vital role in developing strategy and achieving mission, vision and goals successfully. Infact, leaders must always achieve their goals to set an example for their team members to do the same. Leaders must have a strategic overview as it helps them anticipate, envision, maintain flexibility and work with employees to ensure organisational success in the future.
Developing and implementing a successful organisational strategy is a critical task for leaders. A leader’s role is to provide direction, clarity, and inspiration to the organisation while ensuring that the strategy aligns with the organisation’s mission and values.
Leaders are crucial in ensuring an organisation’s vision aligns with its strategy and purpose. They must ensure that the organisation’s vision is clear and well-articulated and it inspires and motivates employees. The leader must also ensure that the organisational purpose is aligned with its vision and reflects in the firm’s core values and mission. For example, if the organisation’s vision is to become a leader in sustainability, the leader must ensure that the strategy includes initiatives that promote sustainability, such as reducing the organisation’s carbon footprint or promoting eco-friendly products and services. They must also be able to communicate the same clearly and continuously.
Leaders should involve employees in the process of developing and implementing the organisation’s vision, purpose, and strategy to make employees feel invested in the vision and are more likely to work towards its achievement.
Leaders play a crucial role in fostering employee commitment. By leading by example, leaders can exhibit organisational commitment and dedication. Leadership styles have a direct influence on organisational culture.
Communicating openly and honestly with their employees helps leaders build trust and creates a sense of transparency, which can enhance employee commitment. By providing training programs, growth and career advancement opportunities, and mentorship, leaders can engage employees better and increase their commitment to the organisation.
Financial and non-financial rewards such as promotions, bonuses, and public recognition help leaders instil a sense of pride and accomplishment in employees, helping boost their commitment. A positive work environment promotes mutual respect, teamwork and collaboration, where employees feel valued, heard and supported. This falls under the leaders’ purview.
By holding regular town hall meetings to update employees on the progress of the strategy, recognising and rewarding employees who contribute to its success, and providing opportunities for employees to give feedback and make suggestions, leaders can help strengthen employee commitment.
Understanding the link between organisation strategy, vision, purpose, and employee commitment is vital for leaders as it helps them develop a coherent and compelling narrative that resonates with employees. By clearly communicating the organisation’s purpose and vision, leaders can inspire employees and foster a sense of belonging and meaning. When employees feel aligned with the organisation’s values and goals, they are more likely to be engaged, committed, and motivated, leading to increased productivity and better overall performance.
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