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1/28/2019 The Mission Statement

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The Mission Statement

A mission statement defines the fundamental purpose of an organiza�on or enterprise.

A mission statement’s purpose is to retain consistency in overall

strategy and to communicate core organiza�onal goals to all

stakeholders.

The business owners and upper managers develop the mission

statement and uphold it as a standard across the organiza�on. It

provides a strategic framework for running the organiza�on.

In a best-case scenario, an organiza�on conducts internal and

external assessments to ensure the mission statement is being

upheld.

A mission statement contains informa�on about the key market,

contribu�on, and dis�nc�on of an organiza�on. It describes what the

organiza�on does, why, and how it excels at what it does.

Key Terms

mission—set of tasks that fulfills a purpose or duty; an assignment

set by an employer

stakeholder—person or organiza�on with a legi�mate interest in a

given situa�on, ac�on, or enterprise

Learning Resource

Key Points

1/28/2019 The Mission Statement

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A mission statement defines the purpose of a company or organiza�on. The mission statement

guides the organiza�on’s ac�ons, spells out overall goals, and guides decision making. The

mission statement is generated to retain consistency in overall strategy and to communicate

core organiza�onal goals to all stakeholders. The business owners and upper managers

develop the mission statement and uphold it as a standard across the organiza�on. It provides

a strategic framework the organiza�on is expected to abide by.

Mission Statement

An example of a mission statement, which includes the organiza�on’s aims and stakeholders,

and how it provides value to these stakeholders.

In a best-case scenario, an organiza�on conducts internal and external assessments rela�ve to

the mission statement. The internal assessment should focus on how members inside the

organiza�on interpret the mission statement. The external assessment, which includes the

business’s stakeholders, is also valuable since it offers a different perspec�ve. Discrepancies

between these two assessments can provide insight into the effec�veness of the

organiza�on’s mission statement.

Contents

1/28/2019 The Mission Statement

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Effec�ve mission statements start by ar�cula�ng the organiza�on’s purpose. Mission

statements o�en include the following informa�on:

aim(s) of the organiza�on

the organiza�on’s primary stakeholders, such as clients or customers, shareholders,

congrega�on, donors, students, etc.

how the organiza�on provides value to its stakeholders; that is, by offering specific types

of products or services

declara�on of the organiza�on’s core purpose

According to business professor Christopher Bart, the commercial mission statement consists

of three essen�al components:

1. Key market: Who is your target client/customer? ( generalize if necessary)

2. Contribu�on: What product or service do you provide to that client?

3. Dis�nc�on: What makes your product or service so unique that the client should choose

you?

Assimila�on

To be truly effec�ve, an organiza�onal mission statement must be assimilated into the

organiza�on’s culture. Leaders have the responsibility of communica�ng the vision regularly,

crea�ng narra�ves that illustrate the vision, ac�ng as role models by embodying the vision,

crea�ng short-term objec�ves compa�ble with the vision, and encouraging employees to cra�

their own personal vision that is compa�ble with the organiza�on’s overall vision.

Licenses and A�ribu�ons

Internal Analysis Inputs to Strategy (h�ps://courses.lumenlearning.com/boundless-

management/chapter/internal-analysis-inputs-to-strategy/) from Boundless Management by

Lumen Learning, originally published by Boundless.com, is available under a Crea�ve

Commons A�ribu�on-ShareAlike 4.0 Interna�onal (h�ps://crea�vecommons.org/licenses/by-

sa/4.0/) license. UMUC has modified this work and it is available under the original license.

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1/28/2019 The Mission Statement

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informa�on located at external sites.

1/28/2019 Management Tools - Mission and Vision Statements - Bain & Company

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Management Tools

Mission and Vision Statements Along with strategic planning, mission and vision statements are among the most widely used tools, and consistently rank above average in satisfaction.

April 02, 2018 • min read

A Mission Statement defines the company’s business, its objectives

and its approach to reach those objectives. A Vision Statement

describes the desired future position of the company. Elements of

Mission and Vision Statements are often combined to provide a

statement of the company’s purposes, goals and values. However,

sometimes the two terms are used interchangeably.

Usage and satisfaction among survey respondents

https://www.bain.com/

1/28/2019 Management Tools - Mission and Vision Statements - Bain & Company

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How Mission and Vision Statements work:

Typically, senior managers will write the company’s overall

Mission and Vision Statements. Other managers at different levels

may write statements for their particular divisions or business

units. The development process requires managers to:

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1/28/2019 What is Strategy?

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What is Strategy?

A strategy is a plan of ac�on designed to achieve a specific goal or series of goals within an

organiza�onal framework.

Strategic management is the process of building capabili�es that

allow a firm to create value for customers, shareholders, and society,

while opera�ng in compe��ve markets.

Strategy entails specifying the organiza�on's mission, vision, and

objec�ves; developing policies and plans to execute the vision; and

alloca�ng resources to implement those policies and plans.

Strategy is largely about using internal assets to create a value-added

proposi�on. This helps to capture opportuni�es in the compe��ve

environment while avoiding threats.

Experts in the field of strategy define the poten�al components of

strategy and the different forms strategy can take.

Key Terms

strategic management—the art and science of formula�ng,

implemen�ng, and evalua�ng cross-func�onal decisions that will

enable an organiza�on to achieve its objec�ves

balanced scorecard—strategic performance management tool used

by managers to track the execu�on of ac�vi�es within their control

and monitor the consequences of those ac�ons

strategy—a plan of ac�on intended to accomplish a specific goal

Learning Resource

Key Points

1/28/2019 What is Strategy?

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Strategy involves the ac�on plan of a company for building compe��ve advantage and

increasing its triple bo�om line over the long term. The ac�on plan relates to achieving the

economic, social, and environmental performance objec�ves; in essence, it helps bridge the

gap between the long-term vision and short-term decisions.

Strategic Management

Strategic management is the process of building capabili�es that allow a firm to create value

for customers, shareholders, and society, while opera�ng in compe��ve markets (Nag,

Hambrick, & Chen, 2006). It entails the analysis of internal and external environments of firms

to maximize the use of resources in rela�on to objec�ves (Bracker, 1980). Strategic

management can depend upon the size of an organiza�on and the proclivity to change the

organiza�on’s business environment.

The process of strategic management entails:

Specifying the organiza�on’s mission, vision, and objec�ves

Developing policies and plans that are designed to achieve these objec�ves

Alloca�ng resources to implement these policies and plans

As an example, let’s take a company that wants to expand its current opera�ons to produce

widgets. The company’s strategy may involve analyzing the widget industry along with other

businesses producing widgets. Through this analysis, the company can develop a goal for how

to enter the market while differen�a�ng from compe�tors’ products. It could then establish a

plan to determine if the approach is successful.

Keeping Score

A balanced scorecard is a tool some�mes used to evaluate a business’s overall performance.

From the execu�ve level, the primary star�ng point will be stakeholder needs and

expecta�ons (i.e., financiers, customers, owners, etc.). Following this, inputs such as

objec�ves, opera�ons, and internal processes will be developed to achieve these expecta�ons.

Another way to keep score for a strategy is to use a strategy map. Strategy maps help to

illustrate how various goals are linked and provide trajectories for achieving them.

1/28/2019 What is Strategy?

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Strategy Map for a Public-Sector Organiza�on

Various goals are linked and there are trajectories for achieving them.

Common Approaches to Strategy

Richard Rumelt

In 2011, Professor Richard P. Rumelt described strategy as a type of problem solving. He

outlined a perspec�ve on the components of strategy, which include the following:

Diagnosis. What is the problem being addressed? How do the mission and objec�ves

imply ac�on?

Guiding Policy. What framework will be used to approach the opera�ons? (This, in many

ways, should be the decision of a given compe��ve advantage rela�ve to the

compe��on.)

1/28/2019 What is Strategy?

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Ac�on Plans. What will the opera�ons look like (in detail)? How will the processes be

enacted to align with the guiding policy and address the issue in the diagnosis?

Michael Porter

In 1980, Michael Porter wrote that formula�on of compe��ve strategy includes the

considera�on of four key elements:

company strengths and weaknesses

personal values of the key implementers (i.e., management or the board)

industry opportuni�es and threats

broader societal expecta�ons

Henry Mintzberg

Henry Mintzberg stated that there are prescrip�ve approaches (what should be) and

descrip�ve approaches (what is) to strategic management. Prescrip�ve schools are “one size

fits all” approaches that designate best prac�ces, while descrip�ve schools describe how

strategy is implemented in specific contexts. No single strategic managerial method

dominates, and the choice between managerial styles remains a subjec�ve and context-

dependent process. As a result, Mintzberg hypothesized five strategic types:

strategy as plan—a directed course of ac�on to achieve an intended set of goals, similar

to the strategic planning concept

strategy as pa�ern—a consistent pa�ern of past behavior with a strategy realized over

�me rather than planned or intended. (Where the realized pa�ern was different from the

intent, Mintzberg referred to the strategy as emergent.)

strategy as posi�on—loca�ng brands, products, or companies within the market based

on the conceptual framework of consumers or other stakeholders; a strategy determined

primarily by factors outside the firm

strategy as ploy—a specific maneuver intended to outwit a compe�tor

strategy as perspec�ve—execu�ng strategy based on a “theory of the business,” or a

natural extension of the mindset or ideological perspec�ve of the organiza�on

Example

1/28/2019 What is Strategy?

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A company wants to expand its current opera�ons to produce widgets. The company’s

strategy may involve analyzing the widget industry along with other businesses

producing widgets. Through this analysis, the company can develop a goal for how to

enter the market while differen�a�ng from compe�tors’ products. It could then establish

a plan to determine if the approach is successful.

References

Bracker, J. (1980). The historical development of the strategic management concept. Academy

of Management Review, 5(2), 219–224.

Nag, R., Hambrick, D. C., & Chen, M. (2007). What is strategic management, really? Induc�ve

deriva�on of a consensus defini�on of the field. Strategic Management Journal. 28(9): 935–

955. doi:10.1002/smj.615. Retrieved October 22, 2012

Licenses and A�ribu�ons

Strategic Management (h�ps://courses.lumenlearning.com/boundless-

management/chapter/strategic-management/) from Boundless Management by Lumen

Learning, originally published by Boundless.com, is available under a Crea�ve Commons

A�ribu�on-ShareAlike 4.0 Interna�onal (h�ps://crea�vecommons.org/licenses/by-sa/4.0/)

license. UMUC has modified this work and it is available under the original license.

All links to external sites were verified at the �me of publica�on. UMUC is not responsible for the validity or integrity of

informa�on located at external sites.

https://courses.lumenlearning.com/boundless-management/chapter/strategic-management/

https://creativecommons.org/licenses/by-sa/4.0/

1/28/2019 The Role of Vision

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The Role of Vision

A clear and well-communicated vision is essen�al for a leader to gain support and for

followers to understand a leader’s goals.

Vision is defined as a clear, dis�nc�ve, and specific view of the future

that is usually connected with strategic decisions for the

organiza�on.

A thriving organiza�on will have a vision that is succinct,

understandable, and indica�ve of the direc�on that the company

wants to head in the future.

Leaders are essen�al for communica�ng the vision of the

organiza�on and promo�ng it through the decisions they make and

the strategies they pursue.

Key Term

vision—a clear, dis�nc�ve, and specific view of the future that is

usually connected with a leader’s strategic advances for the

organiza�on

A vision is defined as a clear, dis�nc�ve, and specific view of the future, and is usually

connected with strategic advances for the organiza�on. Effec�ve leaders clearly define a

vision and communicate it in a way that fosters enthusiasm and commitment throughout the

Learning Resource

Key Points

1/28/2019 The Role of Vision

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organiza�on. This ability to express a vision and use it to inspire others differen�ates a leader

from a manager.

Many researchers believe that vision is an essen�al quality of effec�ve leaders—as important

as the abili�es to communicate and to build trust. Effec�ve leaders clearly communicate their

vision of the organiza�on. Their decisions and strategies reflect their view of what an

enterprise can be rather than what it currently is. A strong leader builds trust in the vision by

ac�ng in ways that are consistent with it and by demonstra�ng to others what it takes to make

the vision a reality.

Vision is an essen�al component of an organiza�on’s success. A thriving organiza�on will have

a vision that is succinct, indicates the direc�on the company is heading, and widely

understood throughout all levels of the organiza�on. The more employees are aware of,

understand, and believe in the vision, the more useful it is in direc�ng their daily behavior.

Vision and mission are some�mes used interchangeably, but there is a useful dis�nc�on

between the two. A vision describes an organiza�on’s direc�on, while its mission defines its

purpose. By focusing on the value an organiza�on creates, the mission helps priori�ze

ac�vi�es and provides a framework for decision-making.

Vision also plays a significant role in a leader’s strategy for the organiza�on. By se�ng the

direc�on, a vision underscores the necessity of all areas of a business working toward the

same goal. This unity of purpose o�en involves changing what is done and how, and aligning

the ac�vi�es and behavior of people. A vision reduces ambiguity and provides focus—two

benefits that are especially valuable in turbulent or rapidly changing �mes.

Licenses and A�ribu�ons

Defining Leadership (h�ps://courses.lumenlearning.com/boundless-

management/chapter/defining-leadership/) from Boundless Management by Lumen Learning,

originally published by Boundless.com, is available under a Crea�ve Commons A�ribu�on-

ShareAlike 4.0 Interna�onal (h�ps://crea�vecommons.org/licenses/by-sa/4.0/) license. UMUC

has modified this work and it is available under the original license.

https://courses.lumenlearning.com/boundless-management/chapter/defining-leadership/

https://creativecommons.org/licenses/by-sa/4.0/

1/28/2019 The Role of Vision

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All links to external sites were verified at the �me of publica�on. UMUC is not responsible for the validity or integrity of

informa�on located at external sites.

eResource_ The Mission Statement
Article_ Mission and Vision Statements
eBook Resource_ What Is Strategy
eBook Resource_ Defining Leadership_ The Role of Vision