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What is a mission statement?
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What Is A Mission Statement
A mission statement is a short statement used by a company to explain its reason for existence or purpose.
As the name suggests, the mission statement provides a “statement” about the company’s “mission”.
The mission statement is used for several reasons, particularly to motivate employees and show company shareholders and investors where the company is going.
Typically, a company’s mission statement sets the tone for the company’s culture, values, and goals.
Having a clear and to-the-point mission statement allows all company stakeholders to remain focused on the purpose of the company and strive to attain the company’s goals.
Why Adopt A Mission Statement
There are many reasons why companies adopt mission statements.
It’s not uncommon to see large companies spend millions of dollars trying to find the most appropriate mission statement for their organization.
The mission statement tells the world what your company is all about, how you do things, and what values you cherish.
Having a mission statement gives everyone within the company a sense of direction, purpose, and mission.
By adhering to your mission statement, Individuals within the company, all the way to board members, can make decisions that are best aligned with the organization’s overall mission.
How To Draft A Mission Statement
Drafting a mission statement may not be as easy as it may first sound.
Remember, the idea is to come up with a short sentence or paragraph where you outline your company’s overall purpose.
As a first step, you should write down short sentences describing what your company does.
This statement should give the reader a good indication of the nature of your business.
The next step is to describe what differentiates your company in what it is doing.
The statement should give the reader clues about your company’s focus on quality, using sustainable energy, or other differentiating factors.
Then you need to include a statement explaining why your company is in this business.
This statement should give the reader reasons why your company is different from your competitors or other companies.
Drafting a mission statement is a process.
It’s important to start jotting down your ideas and fine-tuning them in an iterative process.
Companies could include different members of the organization to give their ideas, thoughts, and perspective on the mission statement.
Ultimately, your company’s mission statement should reflect what your company is about, how you’re different than others, and where you’re going.
Advantages of Mission Statement
The primary advantage of having a mission statement is that it communicates to all company stakeholders your company’s goals.
Customers, suppliers, vendors, employees, directors, and officers will all understand the purpose of the company and take daily actions to achieve that mission.
Also, when the company’s objective is clear, everyone can make decisions that are best aligned with the company’s mission.
The mission statement will serve as a compass allowing every company stakeholder to paddle in the same direction.
The mission statement is also great for external stakeholders like investors, clients, and the public in general.
When a company has a clear mission statement, investors and clients are reassured that this company is focused and knows its purpose.
Disadvantages of Mission Statement
Although there are advantages to having a mission statement, you should also be mindful of the disadvantages.
The first disadvantage is that a company may develop a mission statement that does not truly convey the company’s goals or may appear far-fetched.
If the mission statement is not on point, it may distract employees and create confusion about the company’s core purpose.
Also, drafting a good mission statement can come at a cost.
It will take time to come up with a mission statement that truly fits the organization.
A company should be ready to assume the internal and external costs of crafting a good mission statement.
Another drawback to a mission statement is that although internal stakeholders may agree with the statement, external stakeholders may not.
If clients or investors do not agree with the company’s mission statement, that can send a wrong message to the market about the company’s overall direction and what the company is all about.
Mission Statement Examples
Let’s look at a few mission statements to illustrate the concept better.
Here are the mission statements of several known brands:
- IKEA: To create a better everyday life for the many people
- JetBlue: To inspire humanity – both in the air and on the ground
- TED: Spread ideas
- Tesla: To accelerate the world’s transition to sustainable energy
- American Express: Become essential to our customers by providing differentiated products and services to help them achieve their aspirations
- Walmart: We save people money so they can live better
- JP Morgan: We aim to be the most respected financial services firm in the world
- Starbucks: To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time
- Apple: To bringing the best user experience to its customers through its innovative hardware, software, and services
- Google: To organize the world’s information and make it universally accessible and useful
- Amazon: Serve consumers through online and physical stores and focus on selection, price, and convenience
- Nike: Do everything possible to expand human potential
- Microsoft: Our mission is to empower every person and every organization on the planet to achieve more
What Is A Mission Statement FAQ
What is a business mission statement?
A mission statement is a sentence or paragraph that defines the company and its primary purpose.
The mission statement should also include a statement about the company’s strategy to achieve its purpose.
Why is a mission statement important?
The mission statement is important as it’s a statement where the company communicates to the world what matters most to it.
Also, the mission statement excites employees and motivates them as they know they fit within the company’s identity.
The mission statement also shows external players like investors and customers that the company knows what it’s about, has a focus and is working hard to achieve that purpose.
How should you use the mission statement?
There are many ways you can use your company’s mission statement.
Many companies will ask that all their employees include the mission statement in their business material or email signatures.
The mission statement can be shared on computer screensavers, can be included in marketing material, and published on the company’s website.
The more a company can share its mission statement with all its stakeholders, the more it can create a sense of identity.
So there you have it folks!
What is a mission statement?
In a nutshell, a mission statement is a short description of why your company exists.
Your mission statement states your company’s goals and your corporate strategy for reaching your goals.
An effective mission statement is one where you briefly state what your company does, how it does it, and why it does what it does.
Companies that do not have a mission statement should consider drafting one to align all stakeholders on the company’s core focus.
Also, if you have a mission statement, it’s good to revisit the statement to ensure that it properly reflects your company’s goals and purpose.
Now that you know what a mission statement is and why it’s important, good luck with your research!
I hope you enjoyed this article on Mission Statement! Be sure to check out more articles on my blog. Enjoy!
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