What is Mission Statement?
Mission Statement can be defined as a sentence describing a company’s function, markets and competitive advantages. It is a short written statement of your business goals and philosophies. It defines what an organisation is, why it exists and its reason for being.
A mission statement is a formal summary that explains:
- What you do.
- How you do it.
- Why you do it.
Table of Content
- 1 What is Mission Statement?
- 2 Mission Definition
- 3 Importance of Mission Statement
- 4 Characteristics of a Mission Statement
- 5 Components of Mission Statement
- 6 Difference between Vision and Mission Statement
- 7 Mission Statement Examples
- 8 How to write Mission Statement
At a minimum, a mission statement should define who are the primary customers of the company, identify the products and services it produces, and describe the geographical location in which it operates.
Missions have one or more of the five distinct and identifiable components:
We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services. (Johnson & Johnson)
- Products or services
AMAX’s principal products are molybdenum, coal, iron ore, copper, lead, zinc, petroleum and natural gas, potash, phosphates, nickel, tungsten, silver, gold, and magnesium. (AMAX Engineering Company)
We are dedicated to the total success of Corning Glass Works as a worldwide competitor. (Corning Glass Works)
- Concern for Survival, Growth, and Profitability
To serve the worldwide need for knowledge at a fair profit by adhering, evaluating, producing, and distributing valuable information in a way that benefits our customers, employees, other investors, and our society. (McGraw-Hill)
Our world-class leadership is dedicated to a management philosophy that holds people above profits. (Kellogg)
Once a mission statement has been set, every organisation needs to periodically review and possibly revise it to make sure it accurately reflects its goals and the business and economic climates evolve.
Importance of Mission Statement
The purpose of the mission statement is to communicate to all the stakeholders inside and outside the organisation what the company stands for and where it is headed.
Importance of Mission Statement is due to the following reasons:
- It helps to ensure unanimity of purpose within the organisation.
- It provides a basis or standard for allocating organisational resources.
- It establishes a general tone or organisational climate.
- It serves as a focal point for individuals to identify with the organisation’s purpose and direction.
- It facilitates the translation of objectives into tasks assigned to responsible people within the organisation.
- It specifies the organisational purpose and then helps to translate this purpose into objectives in such a way that cost, time and performance parameters can be assessed and controlled.
Characteristics of a Mission Statement
A good mission statement should be short, clear and easy to understand. Therefore, it should have the following characteristics of a Mission Statement:
- Not lengthy: A mission statement should be brief.
- Clearly articulated: It should be easy to understand so that the values, purposes, and goals of the organisation are clear to everybody in the organisation and will be a guide to them.
- Broad, but not too general: A mission statement should achieve a fine balance between specificity and generality.
- Inspiring: A mission statement should motivate readers to action. Employees should find it worthwhile working for such an organisation.
- Reflect the firm’s worth: A mission statement should generate the impression that the firm is successful, has direction and is worthy of support and investment.
- Relevant: A mission statement should be appropriate to the organisation in terms of its history, culture and shared values.
- Unique: An organisation’s mission statement should establish the individuality and uniqueness of the company.
- Dynamic: A mission statement should be dynamic in an orientation allowing judgments about the most promising growth directions and the less promising ones.
- Customer orientation: A good mission statement identifies the utility of a firm’s products or services to its customers, and attracts customers to the firm.
- A declaration of social policy: A mission statement should contain its philosophy about social responsibility including its obligations to the stakeholders and the society at large.
- Values, beliefs and philosophy: The mission statement should lay emphasis on the values the firm stands for; company philosophy, known as “company creed”, generally accompanies or appears within the mission statement.
Components of Mission Statement
Mission statements may vary in length, content, format and specificity. But most agree that an effective mission statement must be comprehensive enough to include all the key components. Because a mission statement is often the most visible and public part of the strategic management process, it is important that it includes all the following essential components:
- Basic product or service: What are the firm’s major products or services?
- Primary markets: Where does the firm compete?
- Principal technology: Is the firm technologically current?
- Customers: Who are the firm’s customers?
- Concern for survival, growth and profitability: Is the firm committed to growth and financial soundness?
- Company philosophy: What are the basic beliefs, values, aspirations and ethical priorities of the firm?
- Company self-concept: What is the firm’s distinctive competence or major competitive advantage?
- Concern for public image: Is the firm responsive to social, community and environmental concerns?
- Concern for employees: Are employers considered a valuable asset of the firm?
- Concern for quality: Is the firm committed to highest quality?
Difference between Vision and Mission Statement
1. A mental image of a possible and desirable future state of the organization.
2. A dream.
4. Answers the question “what we want to become?”
1. Enduring statement of philosophy, a creed statement.
2. The purpose or reason for a firm’s existence.
3. More specific than vision.
4. Answers the question “what is our business”.
Mission Statement Examples
Mission statements inspire others to act. Here are some Mission Statement Examples of companies you probably know.
"Our mission is to empower every person and every organization on the planet to achieve more."
Microsoft's mission statement expresses their belief in what people make possible. These beliefs and values are translated directly into their products and corporate culture.
"The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit."
Southwest believes that their employees are what makes them different. I mean, I've never been on a Southwest flight I didn't enjoy!
"We ignite opportunity by setting the world in motion."
Uber mission goes beyond getting people from point A to point B: With their technology, they hope to bring about new opportunities for their passengers, helping them meet new people and explore new places.
"To accelerate the world’s transition to sustainable energy."
Tesla's mission isn't just to create rocket ship cars – they put the environment first by creating top-notch electric vehicles.
The Coca-Cola Company
"To refresh the world in mind, body and spirit. To inspire moments of optimism and happiness through our brands and actions."
The Coca-Cola Company wants you to know how a Coke should make you feel. They aim to bring happiness and positivity to their audience, and they treat their mission and vision as a roadmap for their company's success.
How to write Mission Statement
So how to write mission statement? I’ve come up with a process for developing a useful mission statement, and it boils down to four steps.
Describe What Your Company Does
Describe What product or service does your business produce or provide?
- Sell Burger
- Provide educational services
- Grow market vegetables
Describe How Your Company Does What It Does
In this step, we're looking for a description of how your business generally operates.
- Provide superior customer service
- Provide the environment product
Describe Why Your Company Does What It Does
It describes the passion behind your business.
- Sell shoes of the highest quality.
- Grow market vegetables using organic, sustainable farming practices.
Put Your New Mission Statement to Work
Once you've framed your business's new mission statement, you'll want to put it to work right away.
- Sell mouse of the highest quality so every customer.
What is a Mission Statement?
A mission statement is a written declaration of an organization's core purpose and focus that normally remains unchanged over time.
What are the 3 parts of a mission statement?
A mission statement has three main parts: 1. statement of mission or vision of the company, 2. statement of the core values that shape the acts and behaviour of the employees, and 3. statement of the goals and objectives.
How long is a mission statement?
Most mission statements are two and four sentences long, but it totally depends on company to company.
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Very informative and highly inspiring. Keep on educating the entrepreneurs.