Mission statement

Last updated

A mission statement is a short statement of why an organization exists, what its overall goal is, the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. [1] [2] It may include a short statement of such fundamental matters as the organization's values or philosophies, a business's main competitive advantages, or a desired future state—the "vision". [1] [3] Historically it is associated with Christian religious groups; indeed, for many years, a missionary was assumed to be a person on a specifically religious mission. The word "mission" dates from 1598, originally of Jesuits sending ("missio", Latin for "act of sending") members abroad. [4]

Contents

A mission is not simply a description of an organization by an external party, but an expression, made by an organization's leaders, of their desires and intent for the organization. A mission statement aims to communicate the organisation's purpose and direction to its employees, customers, vendors, and other stakeholders. A mission statement also creates a sense of identity for employees. Organizations normally do not change their mission statements over time, since they define their continuous, ongoing purpose and focus. [5]

According to Chris Bart, professor of strategy and governance at McMaster University, [6] a commercial mission statement consists of three essential components: [7] [ failed verification ]

  1. key market: the target audience
  2. contribution: the product or service
  3. distinction: what makes the product unique or why the audience should buy it over another

Bart estimates that in practice, only about ten percent of mission statements say something meaningful. [6] For this reason, such statements are widely regarded with contempt. [7]

Purpose

Although the notion of business purpose may transcend that of a mission statement, [8] the sole purpose of a commercial mission statement is to summarize a company's main goal/agenda, it outlines in brief terms what the goal of a company is. Some generic examples of mission statements would be, "To provide the best service possible within the banking sector for our customers." or "To provide the best experience for all of our customers." The reason why businesses make use of mission statements is to make it clear what they look to achieve as an organization, not only to themselves and their employees but to the customers and other people who are a part of the business, such as shareholders. As a company evolves, so will their mission statement. This is to make sure that the company remains on track and to ensure that the mission statement does not lose its touch and become boring or stale.

It is important that a mission statement is not confused with a vision statement.[ citation needed ] As discussed earlier, the main purpose of a mission statement is to get across the ambitions of an organisation in a short and simple fashion; it is not necessary to go into detail for the mission statement which is evident in examples given. The reason why it is important that a mission statement and vision statement are not confused is because they both serve different purposes. Vision statements tend to be more related to strategic planning and lean more towards discussing where a company aims to be in the future.

Religious mission statements are less explicit about key market, contribution and distinction, but clearly describe the organization's purpose. [9] For example: "Peoples Church is called to proclaim the Gospel of Christ and the beliefs of the evangelical Christian faith, to maintain the worship of God, and to inspire in all persons a love for Christ, a passion for righteousness, and a consciousness of their duties to God and their fellow human beings. We pledge our lives to Christ and covenant with each other to demonstrate His Spirit through worship, witnessing, and ministry to the needs of the people of this church and the community."

Advantages

Provides direction: Mission statements are a way to direct a business into the right path. They play a part in helping the business make better decisions which can be beneficial to them. Without the mission statement providing direction, businesses may struggle when it comes to making decisions and planning for the future. This is why providing direction could be considered one of the most advantageous points of a mission statement.

Clear purpose: Having a clear purpose can remove any potential ambiguities that may surround the existence of a business. People who are interested in the progression of the business, such as stakeholders, will want to know that the business is making the right choices and progressing more towards achieving their goals, which will help to remove any doubt the stakeholders may have in the business.

A mission statement can act as a motivational tool within an organisation, and it can allow employees to all work towards one common goal that benefits both the organisation and themselves. This can help with factors such as employee satisfaction and productivity. It is important that employees feel a sense of purpose. Giving them this sense of purpose will allow them to focus more on their daily tasks and help them realise the goals of the organisation and their role. [10] [11]

Disadvantages

Although it is mostly beneficial for a business to craft a good mission statement, there are some situations where a mission statement can be considered pointless or not useful to a business.

Unrealistic: In some cases, mission statements be too optimistic, sapping the performance and morale of the employees. Inability to meet too high a standard could demotivate employees in the long term. Unrealistic mission statements also serve no purpose and can be considered a waste of management's time.[ citation needed ]

Poor decisions could be made in an attempt to achieve unrealistic goals, which have the potential to harm the business, and waste of both time and resources, which could be better spent on much more important tasks within the organisation such as decision-making for the business.[ citation needed ]

Designing a Statement

According to an independent contributor to Forbes, the following questions must be answered in the mission statement: [12]

When designing a mission statement, it should be very clear to the audience what the purpose of it is. It is ideal for a business to be able to communicate their mission, goals and objectives to the reader without including any unnecessary information through the mission statement. [13]

US Federal Emergency Management Agency's Mission Statement Poster FEMA - 44805 - FEMA Mission Statement posted at a Joint Field Office in TN.jpg
US Federal Emergency Management Agency's Mission Statement Poster

Richard Branson has commented on ways of crafting a good mission statement; he explains the importance of having a mission statement that is clear and straight to the point and does not contain unnecessary baffling. He went on to analyse a mission statement, using Yahoo's mission statement at the time (2013) as an example. In his evaluation of the mission statement, he seemed to suggest that while the statement sounded interesting, most people would not be able to understand the message it is putting across. In other words, the message of the mission statement potentially meant nothing to the audience. [14]

This further backs up the idea that a good mission statement is one that is clear and answers the right questions in a simple manner, and does not over complicate things. An example of a good mission statement would be Google's, which is "to organise the world's information and make it universally accessible and useful." [15] [ failed verification ]

See also

Related Research Articles

<span class="mw-page-title-main">Public relations</span> Management of public communication of organizations

Public relations (PR) is the practice of managing and disseminating information from an individual or an organization to the public in order to influence their perception. Public relations and publicity differ in that PR is controlled internally, whereas publicity is not controlled and contributed by external parties. Public relations may include an organization or individual gaining exposure to their audiences using topics of public interest and news items that do not require direct payment. The exposure is mostly media-based, and this differentiates it from advertising as a form of marketing communications. Public relations aims to create or obtain coverage for clients for free, also known as earned media, rather than paying for marketing or advertising also known as paid media. But in the early 21st century, advertising is also a part of broader PR activities.

<span class="mw-page-title-main">Business plan</span> Formal written document containing the goals of a business

A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets. In its entirety, this document serves as a road-map that provides direction to the business.

In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of resources and an assessment of the internal and external environments in which the organization operates. Strategic management provides overall direction to an enterprise and involves specifying the organization's objectives, developing policies and plans to achieve those objectives, and then allocating resources to implement the plans. Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision-making in the context of complex environments and competitive dynamics. Strategic management is not static in nature; the models can include a feedback loop to monitor execution and to inform the next round of planning.

A balanced scorecard is a strategy performance management tool – a well-structured report used to keep track of the execution of activities by staff and to monitor the consequences arising from these actions.

<span class="mw-page-title-main">Requirements analysis</span> Engineering process

In systems engineering and software engineering, requirements analysis focuses on the tasks that determine the needs or conditions to meet the new or altered product or project, taking account of the possibly conflicting requirements of the various stakeholders, analyzing, documenting, validating, and managing software or system requirements.

<span class="mw-page-title-main">Vision statement</span> Future position of an organization

A vision statement is a high-level, inspirational statement of an idealistic emotional future of a company or group. Vision describes the basic human emotion that a founder intends to be experienced by the people the organization interacts with.

In a corporation, a stakeholder is a member of "groups without whose support the organization would cease to exist", as defined in the first usage of the word in a 1963 internal memorandum at the Stanford Research Institute. The theory was later developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, business purpose and corporate social responsibility (CSR). The definition of corporate responsibilities through a classification of stakeholders to consider has been criticized as creating a false dichotomy between the "shareholder model" and the "stakeholder model", or a false analogy of the obligations towards shareholders and other interested parties.

<span class="mw-page-title-main">Internal communications</span>

Internal communications (IC) is the function responsible for effective communications among participants within an organization. The scope of the function varies by organization and practitioner, from producing and delivering messages and campaigns on behalf of management, to facilitating two-way dialogue and developing the communication skills of the organization's participants.

Business analysis is a professional discipline focused on identifying business needs and determining solutions to business problems. Solutions may include a software-systems development component, process improvements, or organizational changes, and may involve extensive analysis, strategic planning and policy development. A person dedicated to carrying out these tasks within an organization is called a business analyst or BA.

Corporate communication(s) is a set of activities involved in managing and orchestrating all internal and external communications aimed at creating a favourable point of view among stakeholders on which the company depends. It is the messages issued by a corporate organization, body or institute to its audiences, such as employees, media, channel partners and the general public. Organizations aim to communicate the same message to all its stakeholders, to transmit coherence, credibility and ethics.

Strategic communication can mean either communicating a concept, a process, or data that satisfies a long-term strategic goal of an organization by allowing facilitation of advanced planning, or communicating over long distances usually using international telecommunications or dedicated global network assets to coordinate actions and activities of operationally significant commercial, non-commercial and military business or combat and logistic subunits. It can also mean the related function within an organization, which handles internal and external communication processes. Strategic communication can also be used for political warfare.

<span class="mw-page-title-main">Hybrid organization</span>

A hybrid organization is an organization that mixes elements, value systems and action logics of various sectors of society, i.e. the public sector, the private sector and the voluntary sector. A more general notion of hybridity can be found in Hybrid institutions and governance.

A problem statement is a description of an issue to be addressed or a condition to be improved upon. It identifies the gap between the current problem and goal. The problem statement should be designed to address the Five Ws. The first condition of solving a problem is understanding the problem, which can be done by way of a problem statement.

Change management (CM) is a collective term for all approaches to prepare, support, and help individuals, teams, and organizations in making organizational change. It includes methods that redirect or redefine the use of resources, business process, budget allocations, or other modes of operation that significantly change a company or organization.

A strategic technology plan is a specific type of strategy plan that lets an organization know where they are now and where they want to be some time in the future with regard to the technology and infrastructure in their organization. It often consists of the following sections.

In business, operational objectives are short-term goals whose achievement brings an organization closer to its long-term goals. It is slightly different from strategic objectives, which are longer term goals of a business, but they are closely related, as a business will only be able to achieve strategic objectives when operational objectives have been met. Operational objectives are usually set by middle managers for the next six to twelve months based on an organisation's aim. They should be attainable and specific so that they can provide a clear guidance for daily functioning of certain operations. This business term is typically used in the context of strategic management and operational planning.

In organizational theory, organizational analysis or industrial analysis is the process of reviewing the development, work environment, personnel, and operation of a business or another type of association. This review is often performed in response to crisis, but may also be carried out as part of a demonstration project, in the process of taking a program to scale, or in the course of regular operations. Conducting a periodic detailed organizational analysis can be a useful way for management to identify problems or inefficiencies that have arisen in the organization but have yet to be addressed, and develop strategies for resolving them.

A concept-driven strategy is a process for formulating strategy that draws on the explanation of how humans inquire provided by linguistic pragmatic philosophy. This argues that thinking starts by selecting a set of concepts gained from our past experiences. These are used to reflect on whatever happens, or is done, in the future.

In the 1980s, a change in companies organizational culture began when internal and external actors started to demand more from the companies from whom they acquired goods and services. Actors wanted companies to reflect their core values, or the values that were established the moment when the organization was created; these values also need to reflect the company's organizational culture. These actors were later on given the name of stakeholders, people or groups who have an interest, claim, or stake in the organization. To be more specific, they focus on what a company does and how well it performs. As companies began to maximize their profits, stakeholders became more demanding and influential in the decision-making process. These groups of stakeholders began insisting on a more dynamic, stimulating, and rewarding work environment that would result in better work conditions.

The high performance organization (HPO) is a conceptual framework for organizations that leads to improved, sustainable organizational performance. It is an alternative model to the bureaucratic model known as Taylorism. There is not a clear definition of the high performance organization, but research shows that organizations that fit this model all hold a common set of characteristics. Chief among these is the ability to recognize the need to adapt to the surroundings that the organization operates in. High performance organizations can quickly and efficiently change their operating structure and practices to meet needs. These organizations focus on long term success while delivering on actionable short term goals. These organizations are flexible, customer focused, and able to work highly effectively in teams. The culture and management of these organizations support flatter hierarchies, teamwork, diversity, and adaptability to the environment which are all of paramount success to this type of organization. Compared to other organizations, high performance organizations spend much more time on continuously improving their core capabilities and invest in their workforce, leading to increased growth and performance. High performance organizations are sometimes labeled as high commitment organizations.

References

  1. 1 2 "Mission Statement". Small Business Encyclopedia. Entrepreneur Media, Inc. Retrieved 2015-11-01.
  2. ↑ Gibson, C. Kendrick; Newton, David J.; Cochran, Daniel S. (1992). "An empirical investigation of the nature of hospital mission statements". In Brown, Montague (ed.). Health Care Management: Strategy, Structure, and Process. Health Care Management Review Series. Gaithersburg, MD: Aspen Publishers. pp. 47–58. ISBN   978-0-8342-0299-3. OCLC   25281735 . Retrieved 2017-04-13– via Google Books. A frequently quoted definition of a mission statement is that it 'is a broadly defined but enduring statement of purpose that distinguishes the organization from others of its type and identifies the scope of its operations in product (service) and market terms.'
  3. ↑ Hill, Charles; Jones, Gareth (2008). "Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage". Strategic Management: An Integrated Approach (8th ed.). Mason, OH: South-Western Educational Publishing. p.  11. ISBN   978-0-618-89469-7. OCLC   238715134 – via Google Books.
  4. ↑ "mission - Etymology, origin and meaning". Etymonline. Retrieved 28 January 2022.
  5. ↑ "What is a mission statement? definition and meaning". BusinessDictionary. WebFinance Inc. Retrieved 27 October 2015.
  6. 1 2 Holland, Kelley (23 September 2007). "In Mission Statements, Bizspeak and Bromides". Job Market: Under New Management. New York Times (New York ed.). p. 317.
  7. 1 2 Bart, Christopher K. (November–December 1997). "Sex, Lies, and Mission Statements". Business Horizons. 40 (6): 9–18. doi:10.1016/S0007-6813(97)90062-8. SSRN   716542.
  8. ↑ Mourkogiannis, Nikos (2006). Purpose : the starting point of great companies (1st ed.). New York: Palgrave. ISBN   1-4039-7581-7. OCLC   70676637.
  9. ↑ "[Definition and examples of religious mission statements]". Mission Statements. Retrieved 28 January 2022.
  10. ↑ "Benefits of Vision and Mission Statements". Clearlogic Consulting Professionals. 2013. Retrieved 2015-11-01.
  11. ↑ Vozar, Roger (1 June 2013). "How organizations benefit from having a clearly defined mission". Smart Business Magazine. Smart Business Network Inc. Retrieved 2015-11-02.
  12. ↑ Hull, Patrick (10 January 2013). "Answer 4 Questions to Get a Great Mission Statement". Forbes. Retrieved 2015-11-02.
  13. ↑ "How to Write Your Mission Statement". Entrepreneur. 30 October 2003. Retrieved 2015-11-02.
  14. ↑ Branson, Richard (22 July 2013). "Richard Branson on Crafting Your Mission Statement". Entrepreneur. Entrepreneur Media, Inc. Archived from the original on 23 October 2015. Retrieved 2015-11-02.
  15. ↑ Thompson, Andrew (20 August 2015). "Google's Vision Statement & Mission Statement". Panmore Institute. Archived from the original on 13 November 2015. Retrieved 2015-11-02.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.