A vision statement can act as a compass, providing direction for an organization, guiding it through good times and bad. Or it can simply be a string of lofty buzzwords that ring hollow when it’s time to act.

The problem with many vision statements is that the company’s leaders believe they’ve developed a vision when, in fact, they’ve merely pinpointed a strategy.

Vision is bigger than strategy, more insightful, and more powerful. A strong vision statement captures the reason an organization exists in the first place, and inspires it to succeed for years to come.

What, exactly, is the vision?

A good statement is enduring. It must have permanence and power, setting the overall direction for the organization. It imagines what success will look like in the future. Because it is a long-term, far-reaching ideal, it will be consistently applied over time, giving shape and guidance to the company’s path.

Any clear vision statement should state what a company does and for whom. It should reflect the organization’s overall market environment and the general products or services offered, while also highlighting one or more points of uniqueness or differentiation. And it should never include empty comparisons to the competition.

Clarity is key. Statements aren’t intended to communicate profound strategies or complex business theories. Instead, they should paint a big picture with just a few small words.

A genuine vision statement is one that can be understood by an elderly grandmother and a sixth grader. If these two can grasp it, then so should the statement’s target audience, the company’s employees.

Above all else, a clearly articulated statement must inspire action. It needn’t be earthmoving, but it does have to be compelling.

Where’s the action?

Vision without action is a dream, and action without vision just passes the time. Which is why a vision statement must establish the platform for action -- in other words, strategy, goals, and tactics?

If vision is the direction, then strategy is the map created for the journey. It’s the path chosen from among many alternative routes, and it identifies how the company’s vision will be achieved.

Strategy takes the entire company under complete consideration, aligning its organizational structure, resources, and priorities in response to market conditions, the competitive environment, and regulatory influences. It then drives the appropriate day-to-day tactics, as well as other shorter-term initiatives.

Without a strategy derived from the vision, the all-important tactical decisions will fall short, stalling growth or derailing it altogether. In order to succeed, companies must successfully synchronize vision, strategy, and tactics.

Remember, good vision alone is never enough to get anywhere.