How to Develop a Mission Statement
A mission is a clear, concise and enduring statement of the reasons for an organization’s existence
today. A vision represents future purpose, providing a mental picture of the aspirational existence
that an organization is working toward. Supporting both the current and future purpose are values.
Values are the ideals and principles which guide the thoughts and actions of an organization and
define its character. Working together, mission, vision and values provide a powerful directional
force for unifying and coordinating actions and decisions to ensure the optimal use of resources.
As strategy is concerned with the intelligent allocation of limited resources, we can see that
identifying a current and future purpose is critical. From a strategic thinking perspective,
establishing a clear and compelling purpose provides the general basis or criteria on which resource
allocation decisions should be made and measured against. Without purpose, the rationale for
decision making becomes subjective and disconnected from the goals and objectives trying to be
achieved.
The mission statement also serves to begin to frame the business strategy. As the scope of business,
customer targets and competitive arena are addressed in the mission statement; it naturally serves
to begin defining elements of the business strategy. Defining these elements also forces you to
decide what not to do, one of the key characteristics of strategic thinking. It is in this process of
choosing what not to do and who not to target as customers that the business focus emerges. The
importance of focus was clearly articulated by the noted military historian B.L. Hart when he said:
“The principles of war can be condensed into one word—concentration.”
One element of the mission that is often overlooked is the importance of the belief and commitment
to it once it’s developed. As with the United States Constitution and the Bible, a mission statement
is only effective for those who believe in it. The belief then must go hand-in-hand with the
commitment to follow it. A New Year’s resolution statement is worthless in and of itself. It is the
commitment to the New Year’s resolution that matters, as evidenced by all the resolutions that
have gone by the wayside.
Once the organization’s mission is in place, mission statements for departments and functional
groups within the organization are appropriate. Mission statements at these levels tend to be more
specific and more closely reflect the daily activities of the particular group. Developing these sub-
mission statements also acts to further clarify the “why” at that level and create greater team
unity—both of which make for a stronger overall organization. Sub-missions are often overlooked,
but can become a powerful motivator and guide for specific functional groups or departments.
Benefits of a Mission Statement
The mission statement, or current purpose, is first and foremost one of the five key elements of
strategic thinking. Without a current purpose, the crucial function of decision-making has no
objective basis from which to be measured. The mission statement gives everyone a baseline that
guides and unifies decision-making. Secondly, the mission statement ensures that different
functional groups within the organization or individuals within a department have the same
underlying rationale for actions. In this sense, the purpose unifies efforts and maximizes the
utilization of resources to reach the established goals and objectives. Acting as a compass, it
ensures that everyone is pulling in the same direction.
Third, it addresses the deeper, emotional component of why people do what they do for an
organization or customer base. It taps into the right-brain (emotional, intuitive, visual, and
synthesizing) versus the left-brain (logical, reasoning, quantitative, analyzing). As we discussed
before, the left-brain is satisfied by the paycheck; the right-brain needs something more, something
that appeals to the emotional side. The mission statement acts to fulfill the emotional needs of the
right-brain, creating a satisfied whole.
Fourth, companies with mission statements have a higher likelihood of financial success. Research
has shown that companies with a well-crafted mission statement have greater financial success and
are recognized for superior quality compared to companies with poor or nonexistent mission
statements. Other studies have reported firms working by a mission statement have a 30% higher
return on certain financial measures than firms that lack mission statements. Not only does
identifying and articulating a mission statement make common sense, it also makes financial sense.
Finally, the current purpose or mission statement acts as a rallying point for people in good times
and in bad times. A mission statement focuses people on the truly important things that will drive
success. In difficult times, the mission statement serves as a reminder to stay on the task at hand.
It also helps prevent people from becoming reactive to minor competitor moves, and instead helps
them follow the course that has been set.
The most common initial act in establishing organizational direction is an organizational mission.
The statement that describes the mission talks about the target market and also talks about its
strategy to be profitable by providing good customer service through friendly and knowledgeable
people. It is essential to look into external influences like labor, conditions, competitors,
government rules while considering mission statement.
Company’s mission statement should define stakeholders expected return along with the
measurement of the performance of the company through those returns. The expected profit too
should be included in the organization’s mission. Moreover, the company should come to
consensus as to what all areas should be measured like margin growth, efficiency, competitive cost
position, product quality, market share etc.
A mission statement sets the boundaries for how resources should be allocated and what strategic
and operational goals should be set. The mission statement should acknowledge the company’s
strength and then inform employees where to direst their efforts in order to take advantage of those
strength. It is often helpful to allow company-wide input when creating a mission statement.
Employees from throughout the organization can help identify the core values of the company. It
is important to keep in mind that there will be a draft process involving in creating the mission
statement. Employees can often provide invaluable insight on how to improve on each draft. In
the end the mission statement should reflect the personality of the organization. Thus each
company should be creative and unique in developing its own statement. Creating a mission
committee that consists of members of management, front-line employees. Communicating the
mission statement to customers to make them feel valued and important. It can be sending to
customers in a mass mailing or posted or signs in areas those customers frequent. It sets the forth
the goals of the organizations so customers know what to expect when doing business with the
company.
Mission and vision statements give organizations a focus and a strategy for the future. Setting up
meetings with members of management and front-line employees can often help uncover areas
where the company does not meet the standard sets by the mission statement.
In conclusion mission statement provides a sense of direction and purpose. In times of change and
growth they can be an anchor and a guide in decision makings. The benefit far outweigh the
disadvantages and challenges when looking at the potential for increase in profitability and returns.
Defining an organization by what it produce and who it satisfies are the main target towards
creating a sound and stable mission statement. Setting a company apart from the competition is
one of the biggest advantages.
Examples of Mission Statement
As mentioned, a mission statement is a summary statement of a company’s or an organization’s
purpose about what it wants to accomplish in the larger environment. A good mission statement
can help the company or an organization to achieve what it wants.
A good mission statement should be visionary, broad, realistic, motivational, short and concise
and easily understood. Starbucks Coffee Company’s mission statement is “to inspire and nurture
the human spirit — one person, one cup and one neighborhood at a time.” Does it meet all the
criteria a mission statement should have?
Based on the mission statement, Starbucks Coffee Company is visionary by aspire to inspire and
nurture the human spirit with their product. The statement is broad enough. As we all know,
Starbucks Coffee Company is famous for its Coffee. However, it also serves other beverage. In
the mission statement, Starbucks Coffee Company did not mention the word Coffee. It does not
limit itself to only selling Coffee. Instead of using “one person, one cup of coffee and one
neighborhood at a time” in their mission statement, Starbucks Coffee Company uses “one person,
one cup and one neighbourhood at a time” which help Starbucks Coffee Company to not limit
itself in the products they provide.
The mission statement of Starbucks Coffee Company is realistic. It is achievable by the company.
Some company will over promise in their mission statement. In this case, they will produce an
unrealistic mission statement that is impossible to achieve. However, Starbucks Coffee Company
did not make the same mistake. It is possible to inspire and nurture the human spirit with their
product in one person having a cup of their product in a neighborhood at a time.
Starbucks Coffee Company’s mission statement is motivational. As mentioned just now, the
mission statement should not be set too high. It should also not be too easy to achieve. Some
challenge is needed to achieve the mission so that the mission provides motivation to the
employees. By stating to have a person having a cup in a neighborhood at a time, Starbucks Coffee
Company sets a challenging but achievable mission. It is not easy to have at least one person to
have your product in a neighborhood at a time because it figuratively means that to have a person
to drink a cup of Starbucks Coffee Company’s product in every neighborhood that has a Starbucks
Coffee Company outlet at all times. Besides that, it uses its inspirational value to motivate its
employee. By stating that they will inspire and nurture the human spirit, it inspires employees’ and
customers’ commitment.
A short and concise mission statement should not more than 25 words. Starbucks Coffee
Company’s mission statement is short but very clear. In its mission statement, Starbucks Coffee
Company shows that it is trying to inspire and nurture the human spirit with their product by a
person having a cup of Starbucks Coffee Company product in a neighborhood at a time. It also
clearly shows that its product is beverage as indicated by the word “a cup”. The mission statement
of Starbucks Coffee Company is easily understood. It uses simple word so that everyone can
understand just by looking at it.
Starbucks Coffee Company has design a good mission statement. It clearly shows what the
company wants to achieve and what it can provide in a simple and easily understood form.
However, some company does not have a good mission statement.
Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-
tech materials. Its mission statement is “Bayer: Science For A Better Life”. In terms of visionary,
Bayer shows that it wanted to create a better life for humankind through science. The mission
statement is realistic. It is possible to create a better life through science especially when Bayer
focuses on health care, nutrition and other high-tech material which can help to make life easier.
It is motivational as it expresses the company value and philosophy which could engage the
employees and customers to the company. By stating that to create a better life out of science,
Bayer tells the company employees that they are actually doing something that could make an
impact to the humankind. Employee will be motivated as they can see themselves engaging in a
company which they could contribute something to the society.
Bayer’s mission statement seems to have no problem. However, in terms of short and concise,
Bayer did not achieve it. The mission is short but it is not concise enough. The mission statement
is telling us that Bayer is serving some science related product. We do not know that what kind of
product they actually serve. Will it be healthcare? Will it be a environmental-related product or is
it a lab to produce new innovative products? The mission statement is too broad that we do not
understand the actual product Bayer is producing. Besides that, it does not show how the company
could make a better life out of science. The mission statement is very unclear.
The mission statement is easily understood literally. The problem is the mission statement is not
clear in the sense of it is too simple. It does not clarify on the product it produces and how does it
make the world a better place. It only gives the idea of producing or using science to make a world
a better place without further explain on what type of better place Bayer can provide.
In conclusion, a mission statement should be able to bring out the message of what the company
wants to achieve, brings motivation and can be understand easily by others. A mission statement
can help the company to act as a guideline. That is why a mission statement should be clear and
precise.
