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Be it a startup or a company, they need a mission. So they write it down in a mission statement, which you can see on websites, annual reports, or other company reports. It’s not only important for the company’s image in the public eye, but it’s also important to internalize it to the people within the company to make sure they are headed in the right direction.
A clear and thoughtful mission gives employees a sense of purpose, direction, and ownership to achieve company success. A good mission statement focuses on core goals. It emphasizes key policies and values that the company wants to respect. In addition, it defines the main competitive sphere in which the company operates. Finally, the mission motivates employees to achieve short- to medium-term goals.
Mission statement defined
What’s it: A mission statement is a written statement about your company’s mission. Mission explains what your company’s goals are and why your company exists. It supports the vision and provides the framework or context within which your company’s strategy is formulated. It also identifies your company’s operations in terms of the products you offer and your target market.
A mission statement summarizes your company’s main goals and objectives. Through it, you communicate your business’s goals and direction to stakeholders, both internal and external. For example, it becomes a guide to direct your employees on what they can contribute to the company. With a clear direction, they should be more motivated and eager to achieve company goals.
In essence, a mission statement details your company’s vision as concisely as possible. It should contain your company’s fundamental values and core goals. It should be a statement about your company’s future rather than describing its current position.
Unlike the vision, which rarely changes, the mission may need to be evaluated more frequently to reflect current changes. For example, a dynamic business environment may require you to change business operations. Even if the main reason for your company’s existence has not changed, the methods for achieving your goals may become irrelevant because of the changes. Thus, your company will need to modify its mission to reflect these changes.
Why a mission statement matters
There are several reasons your company should have a mission statement and why it is important to your company.
Planning. A mission becomes the basic framework for your business plan. With this in mind, you design competitive strategies, plan actions, allocate resources, evaluate whether your company successfully achieves it, and take corrective or adaptive actions considering the dynamics of the business environment in which your company operates.
Harmonization. Internalizing the mission builds togetherness, ensuring everyone is in the same mode for doing work and making strategic decisions.
- In a bottom-up approach, the mission statement can come from a consensus within the company. Formulating it requires mutual agreement and synergy between business elements and functions. Thus, when a mission statement has been agreed upon, everyone feels responsible for implementing it and making it a success.
Company image. A mission statement is an important element in building your company’s image. It helps the company form an identity by conveying its values to stakeholders. For this reason, various companies often place it on their websites or sometimes use it in their marketing campaigns.
Business direction. The mission includes a series of short-to-medium-term objectives. It becomes a guide for positioning your company with gradual steps toward the vision you have built. It outlines your company’s goals and guides decision-making and action to achieve them. In addition, it also directs your company’s resources and capabilities on the path you want.
Mission statement vs. vision statement
Mission and vision statements must be inspiring and relevant to all stakeholders. Both must form the individuality of the company. I mean, both set your company apart from the competition. Finally, both form the basis for your company to choose and implement a strategy. For this reason, the two are often juxtaposed and, perhaps, used interchangeably.
But, actually, there is a fundamental difference between a vision statement and a mission statement. So here are some of the points.
Content. The vision describes what your company will look like in the future and explains what it wants to be in the long term. Meanwhile, the mission explains, “What is your company’s business?” and “Why does your company exist?”
- Vision is the foundation for your company’s mission. It is usually more abstract. Meanwhile, the mission is more concrete than the vision because it describes where your company competes, what you offer, and who you serve.
- Furthermore, vision is more like your company’s dream and what your company is. Meanwhile, the mission contains what your company must do to achieve that dream.
Scope. The vision is company-focused, explaining the inherent potential of your company’s future. Meanwhile, the mission is more directly related to markets, customers, products, and stakeholders. The mission also describes how your company is positioned in the competitive landscape, discusses values and work ethics, and focuses on the current state of your company.
Durability. Missions are more enduring than missions and rarely change, even if your business and operating environment change. In contrast, you may have to evaluate your mission more frequently to reflect ongoing changes concerning the market and customers you are targeting.
Characteristics of a good mission statement
An effective mission statement serves as a company’s guiding star, clearly defining its purpose and core values. Writing a mission statement that resonates with stakeholders requires careful consideration of several key elements:
- Competitive advantage: A strong mission statement identifies the specific market niche where the company will compete and excel. It should leverage the company’s unique strengths and resources to establish a clear competitive edge.
- Achievable goals: While ambitious, a good mission statement outlines realistic and attainable goals. These goals should be aligned with the company’s long-term vision, ensuring a clear path toward achieving its desired future state.
- Values-driven: The mission statement should reflect the company’s core values and the fundamental principles that guide its behavior and decision-making. This transparency fosters trust and reinforces the company’s identity for stakeholders.
- Target audience: A well-crafted mission statement defines the company’s target market and the specific customer base it aims to serve. It also clarifies the products or services offered, ensuring stakeholders understand the company’s value proposition.
- Clarity and conciseness: Keep it clear and to the point! Strive for a concise statement, ideally under 50 words or a few short sentences. A convoluted or lengthy statement will be difficult to remember and lose its impact when communicating it to a broad audience.
- Inspiration and memorability: An effective mission statement is not just informative; it’s inspirational. It should motivate employees and stakeholders to feel passionate about the company’s purpose and goals. A clear and concise statement is also easier to remember and becomes a memorable tagline for the company.
How to write a mission statement
A compelling mission statement isn’t just a catchy tagline; it’s a foundational element that shapes your company’s identity and guides its future trajectory. Developing a strong mission statement requires introspection and a clear understanding of your company’s core essence. Here’s a step-by-step breakdown to help you through this process:
1. Dissecting your business core
Market and customer focus: Begin by pinpointing your ideal customer base. Who are you trying to reach, and what specific needs do you address for them? How do your products or services solve their problems or enhance their lives? Understanding your target market allows you to tailor your mission statement to resonate with their priorities. For instance, if your company develops educational software, your mission might emphasize empowering students through engaging learning experiences.
Value proposition: Clearly define the unique value your company offers. What sets you apart from competitors in the marketplace? This could be your innovative approach, exceptional customer service, or commitment to sustainability. Articulating your value proposition ensures your mission statement reflects what makes your company special and the differentiating factor that compels customers to choose you.
2. Envisioning your company’s trajectory
Positioning and Image: How do you want your company to be perceived by stakeholders (customers, investors, employees)? What kind of brand reputation are you striving to build? Your mission statement should paint a picture of your desired company image. For example, if you want to be known for fostering a collaborative work environment, your mission statement could highlight your commitment to employee empowerment and innovation.
Competitive advantage: Identify the specific niche where your company will excel. Leverage your strengths and resources to establish a clear edge over competitors. What makes your company the preferred choice for your target market? Knowing your competitive advantage allows you to position your mission statement to showcase why customers should choose you.
3. Defining your “how”
Capabilities and Resources: What skills, expertise, or technology allows you to deliver on your value proposition? Analyze your resources and capabilities to ensure you can effectively fulfill your mission. Your mission statement should be grounded in reality; consider the resources you have or can acquire to achieve your stated goals.
4. Crafting your statement
Once you’ve undertaken this internal analysis, it’s time to translate your company’s purpose and aspirations into a clear, concise, and inspiring mission statement. Here are some additional tips for crafting a powerful statement:
- Clarity and Concision: Aim for a statement under 50 words or a few short sentences. A clear and concise statement is easier to understand, remember, and communicate to a broad audience.
- Action orientation: Use action verbs to convey a sense of purpose and initiative. Your mission statement should express how your company actively works towards achieving its goals.
- Inspirational language: Use inspirational language to motivate employees and stakeholders to feel passionate about the company’s purpose. This emotional connection fosters a sense of shared purpose and commitment.
- Memorable and distinctive: Strive for a statement that’s memorable and reflects your company’s unique identity. It should be something that stands out from the crowd and leaves a lasting impression.
Examples of mission statements
Now that we’ve explored the key characteristics and steps involved in crafting a compelling mission statement let’s delve into real-world examples. By examining how established companies articulate their purpose and values, we can gain valuable insights and inspiration for formulating our own impactful statements. These examples showcase companies from diverse industries, highlighting the versatility and adaptability of effective mission statements.
- Google: “Organize the world’s information and make it universally accessible and useful.”
- Microsoft: “To empower every person and every organization on the planet to achieve more.”
- Nike: “To bring inspiration and innovation to every athlete* in the world.” [Diringkas]
- Paypal: “To democratize financial services to ensure that everyone, regardless of background or economic standing, has access to affordable, convenient and secure products and services to take control of their financial lives.”
- Starbucks:” To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”
- Tesla: “To accelerate the world’s transition to sustainable energy.”
- The Walt Disney Company: “To entertain, inform, and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds, and innovative technologies that make ours the world’s premier entertainment company.
