This research is a review of the mission and vision statement of SEC (Saudi-Electric-Company). As such, the paper critically analyses the main characteristics of a vision and mission statement.
SEC’s Mission and Vision Statement
It is essential for each organization to have a mission and vision statement. A mission statement is a critical HRM (Human-Resource-Management) tool that defines the purpose and overall intention of an organization to employees and stakeholders (Leuthesser&Kohli, 2015). Furthermore, it determines a firm’s direction, provides a decision-making template, shapes change and facilitates continuous evaluation and improvement (Leuthesser&Kohli, 2015). For instance, we power the Kingdom that energizes the world (SEC, 2019), is the mission statement of SEC (Saudi-Electricity-Company). Aguinis (2013) notes that a strong mission statement must mention the products or services offered by a company and identify the customer base or primary market it serves. The characteristic also includes unique product/services provided as well as the technology used in the production process (Aguinis, 2013). Other essential features include the company’s managerial philosophy, public perception, and self-concept used by employees (Aguinis, 2013). Moreover, mission statements must be brief, verifiable and based on a specific timeline (Aguinis, 2013). Generally, SEC’s mission statement communicates the direction and purpose of the company despite lacking features such as the technology used and employees’ self-concept and managerial philosophy.
Besides focusing on the current activities, it is essential for an organization to envisage its future. As such, Leuthesser and Kohli (2015) point out that a vision statement provides direction to all workers and other people on how an organization will look in the future. To enable employees to achieve the future aspirations of the electricity company, SEC (2019) notes that the company has adapted to serve its clients and Saudi Arabia by providing excellent power services as its vision. Aguinis (2013) points out that a strong vision statement must be understandable, focused, inspiring and identifies goals that cannot be attained easily. Apart from lacking stretch, SEC depicts its future desire by using a clear, motivating and focused vision statement. Therefore, through the vision statement, it is easy for all employees to focus their efforts on enabling SEC to serve all residents in UKSA (United-Kingdom-of-Saudi-Arabia) and provide outstanding services.
Gaps Identified in the Mission and Vision Statement
It is impossible for every characteristic to be captured in a mission statement, mainly because such tools must be brief. For instance, Aguinis (2013) points out that a mission statement must identify the technology that will be used in the production and delivery process of an organization. However, the mission statement of SEC fails to recognize the technology used in the production, transmission, and delivery of electricity (SEC, 2019). Technology plays a critical role in the production of renewable and non-renewable energy in the current business environment, which emphasizes sustainable development. Failure, to clarify through the tool whether the company supports green consumption affects the self-concept embraced by workers and stockholder, who are likely to focus on the most available rather than the most environmentally friendly source of energy. Moreover, Aguinis (2013) notes that a mission statement must highlight how an organization seeks to survive and succeed in the current business environment through growth and profitability. Though SEC identifies the generation of power as its primary activity (SEC, 2019), the company fails to explain its source of funds; whether it will be funded by the government or by recapturing value through profits. Resultantly, without some mission statement characteristics, it is difficult for employees to determine the right approaches to use in the organization.
Though a vision statement has four significant characteristics, all the features are not captured in SEC’s tool. Aguinis (2013) notes that a vision must include stretch, which focuses on goals that the organization cannot realize. However, as SEC (2019) points out the Saudi Electricity Company’s vision statement does not have goals that cannot be accomplished in the future. Unlike SEC, the vision statement Shimizu Corporation stretches its future aspiration by seeking to construct a solar power station on the surface of the moon (Essert, 2014). Lack of stretch in SEC is likely to hamper creativity and innovation among employees. As a result, employees will be unable to identify alternative sources of energy for the company in the future. Consequently, employees are likely to be less inspired and may lack focus on the long-term goals and strategies of the power generator.
SEC’s most crucial Mission and Vision Statement Characteristics
Although several characteristics feature in an ideal mission and vision statement, some of the components are more critical in defining the reasons for the existence of an organization to employees. Products/services, for example, is the main link between an organization and its customers. The main product produced by SEC is power (SEC, 2019); as such, highlighting the product in the company’s statement enables employees to always prioritize continuous production, transmission, and distribution of electricity to each customer. Moreover, the product encompasses other characteristics such as public image and the self-concept embraced by employees and stockholders. For instance, by being a reliable and consistent supplier of electricity in the kingdom, the company can create a positive image among members of the public. Identifying the specific market to be served is another critical component of the tool.
Focus is one of the critical vision statement characteristics in the SEC. As Aguinis (2013) points out, focus highlights some of the features of the performance of a firm’s that are critical for its future success. For future success, the company must concentrate on two things: providing services that meet and exceed the needs of customers in the country and prioritizing the needs of customers. Accordingly, focus enables employees to understand the aspirations of the company, and simultaneously align future goals with the evolving needs of customers. Equally, focus inspires workers by allowing them to concentrate on targets that can be achieved in the future. As such, the employees can enable a firm to realize its vision. Therefore, focus is the ideal characteristic that allows the SEC to achieve its vision.
Determining the Link between the Mission and Vision statements and individual, team, and organizational performance
For a company to be successful, its mission statement must link individual, group and organizational performance. SEC’s mission and vision statement enhance organizational performance by highlighting critical features that are essential to the productivity of individuals and teams. For instance, by identifying the market the company servers, the mission statement enables employees to work as individuals and collaborate with others as they seek to ensure that each resident in the country is connected to the grid. Moreover, to enable employees to operate as individuals and in a team, Aguinis (2013) states that a mission statement must be brief. SEC has a brief mission statement, which consists of eight words (SEC, 2019); hence, employees can easily remember the raison d’être of the company as they execute their duties as individuals or in a team. As such, all the activities conducted in the organization are aligned with its mission statement. Overall, the mission statement of the company is aligned with the goal of the company and the initiative of individuals as well as that of teams.
The mission and vision statement of SEC are linked to the individual, team and organizational performance. Leuthesser and Kohli (2015) point out that for individuals to successfully execute their duties, they must have a focus on and understand the future vision of an organization. Based on the vision statement, one of the aspirations of the company is to continue providing world-class power to the people of Saudi Arabia. Once individuals are motivated and focused, they can easily transfer their expectations for the company to a team. Teams, on the other hand, can combine individual efforts and thus enable each member to have a better understanding and be more inspired on the company’s vision. For instance, Leuthesser and Kohli (2015) point out that a team inspires members by promoting creativity and innovation and facilitating the exchange of ideas. In turn, the efforts of individuals and team members will enhance organizational performance through better service delivery and production of quality products. Overall, the SEC’s vision statement improves organizational success by linking the performance of individuals, teams and the entire organization.
The mission statement provides a brief description of an organization’s existence to employees. On the other hand, a vision statement gives a summary of the aspiration of a company to workers and other stakeholders. SEC’s mission statement shows most features of a mission statement including mentioning products, customer base, and the target market, among others. However, the mission statement lacks some critical functions such as technology used in the production process. Regardless, the mission statement can link individual, team and organizational performance, mainly through ideal characteristics such as brevity, products, and target market. On the other hand, SEC’s vision statement shows attributes such as understanding, focus, and inspiration. However, the statement lacks stretch, and thus affects the ability of workers to be creative and innovative. As demonstrated in the research, vision and mission statement are critical tools that enhance the human resource practice in each organization.
Aguinis, H. (2013). Performance management (Vol. 2). Boston, MA: Pearson.
Essert, M. (2014). A Japanese Company Wants to Build an 11,000-Mile Solar Power Center On the Moon. [online] Mic.com. Available at: https://mic.com/articles/83277/a-japanese-company-wants-to-build-an-11-000-mile-solar-power-center-on-the-moon#.3q6HrsKEP [Accessed 7 Feb. 2019].
Leuthesser, L., &Kohli, C. (2015). Mission statements and corporate identity. In Proceedings of the 1996 Academy of Marketing Science (AMS) annual conference (pp. 145-148). Springer, Cham.
SEC (Saudi-Electricity-Company) (2019). Saudi Electricity Company. [online] Se.com.sa. Available at: https://www.se.com.sa/en-us/Pages/OurVisionAndMissionAndValues.aspx [Accessed 7 Feb. 2019].
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