Before creating a mission statement these two questions should be asked
·
What is your business and what are we trying to accomplish on
behalf of our customers?
·
What is your company’s reason for existing?
Criteria
for Evaluating a Mission Statement
·
Is our mission statement focused on satisfying customer needs
rather than being focused on the product?
·
Does our mission statement tell who our customers are?
·
Does our mission statement explain what customer needs our
company is trying to satisfy?
·
Does our mission statement explain how our company will serve
its customers?
·
Does our mission statement fit the current market environment?
·
Is our mission statement based on our core competencies? (A core
competency is a company strength.)
·
Is our mission statement motivating and does it inspire employee
commitment?
·
Is our mission statement realistic?
·
Is our mission statement specific, short, sharply focused and
memorable.
·
Is our mission statement clear and easily understood?
·
Does our mission statement say what we want to be remembered
for?
Defining Your Mission
“What is our business and what are we trying to accomplish on
behalf of our customers?” (Direction, umbrella statement, purpose statement,
scope of operation)
Purpose Statement
What a company is currently seeking to do for its customers is
often termed the company’s mission. It answers the question “What is the
company’s reason for existing?” A mission statement is a statement of the
company’s purpose. A mission statement is useful for putting the spotlight on
what business a company is presently in and the customer needs it is presently
endeavoring to serve. A mission statement deals with the present and answers
the question “What is our business and what are we trying to accomplish on
behalf of our customers?” A mission statement is a logical vantage point from
which to look down the road. (Thomas Strickland, p.4, 28)
A
mission statement defines the company’s purpose. It is a single statement of
why something or someone exists. The question to ask to determine purpose is:
In light of all the needs we see, why do we exist as an
organization?
A mission statement is like your North Star. A North Star, is
not a place you go, it is a fixed point giving you perspective on where you are
going. Your mission statement keeps you headed in the right general direction.
A mission statement is a very specific umbrella statement explaining why you do
everything you do within your organization.(Bobb Beihl)
A mission statement is a statement of the organization’s reason
for being, its purpose – what it wants to accomplish in the larger environment. (Kotler
p.49). It explains why the organization does what it does. It says what,
in the end, the organization wants to be remembered for.(Drucker). A clear mission statement acts as an
“invisible hand” that guides people in the organization. (Kotler
p.49).
An
effective mission statement clearly defines who the customer is and what
services and products the business intends to provide. It also serves as a
guide for day-to-day operations and as the foundation for future
decision-making.
Contemporary strategic marketing perspectives indicate that an
organization should define a business by the type of customers it wishes to
serve, the particular needs of those customers groups it wishes to satisfy, and
the means or technology by which the organization will satisfy these customer
needs. Thus the firm will be perceived and act more customer &
market-oriented. (A customer-satisfying entity, not a product-producing
entity.) (Kerin & Peterson, p.2).
A
company’s Mission Statement acts as the company’s compass. The mission is the
path. (The vision is the end point.) The mission directs the company to its
vision (dream). With it, anyone in the organization can always judge the
direction the company is moving in relation to its stated purpose. With it, one
can easily make adjustments to keep the company moving in the direction
intended.
Missions may need to be revised every few years in response to
every new turn in the economy. A company must redefine its mission if that
mission has lost credibility or no longer defines an optimal course for the
company. (Kotler p.68)
Without the mission statement, a company is lost, and will drift
according to the pressures of the business environment. The fundamental
problem, termed mission creep, has been a diffusion of focus. There is the
tendency of successful organizations to try to extend their influence beyond
the limits of their core expertise. So if you want to stay focused, develop a
clear, concise mission statement.
Writing a Mission
Statement Mission Statement = Define of company’s business + Meeting customer
needs
Questions to Ask in Writing a Mission Statement: (Bobb
Beihl)
1.
What single, solitary
word is the focus for our organization? This is a single focus word within our
organization.
2.
What would be the 2 or 3 words that would explain why we exist?
3.
What one sentence would sum up what our organization is about,
in a very simple, clear, easy to understand way? Take your 2-3 words and put
them into a single non-technical sentence that anyone could easily understand.
Criteria of a Good
Mission Statement
Changing the mission or creating an organization’s first mission
statement is a process of gathering ideas and suggestions for the mission and
honing them into a short, sharply focused phrase that meets specific criteria.
An
effective mission statement clearly defines who the customer is and what
services and products the business intends to provide. It also serves as a
guide for day-to-day operations and as the foundation for future
decision-making. The following are criteria for a good mission statement:
The
Mission Statement is Focuses on Satisfying Customer Needs A mission
statement should focused on satisfying customer needs rather than being focused
on the product. Products and technologies eventually become outdated, but basic
market needs may last forever. A market-oriented mission statement defines the
business in terms of satisfying basic customer needs. For examples refer to the
following “Market-Oriented Business Definitions” table. (Kotler
p.49)
The Mission Statement Tells “Who” Our Customers
are. (Thompson Strickland, p.30)Who is being satisfied?
A company should define the type of customers it wishes to serve. Which
customer groups it is targeting. Customer groups are relevant because they
indicate the market to be served, the geographic domain to be covered, and the
types of buyers the firm is going after.
The Mission Statement Explains “What” Customer Needs Our Company
is Trying to Satisfy. What customer needs is the company trying to satisfy? A company
should define the particular needs of those customers groups it wishes to
satisfy. A product or service becomes a business when it satisfies a need or a
want.
The
Mission Statement Explains “How” Our Company will Serve its Customers. How
customers’ needs are satisfied? A company should define the means or technology
by which it will serve the target market and satisfy the customer’s needs. By
incorporating Who, What and How the firm will be perceived and act more
customer & market-oriented. It will be perceived as a customer-satisfying
entity, not a product-producing entity. (Kerin
& Peterson, p.2.)
McDonald’s
business mission is built around:
·
serving a limited menu of hot, tasty food (what) quickly in a
clean, friendly restaurant for a good value (how)
·
to a broad base of fast-food customers worldwide (who).
The
Mission Statement Fits the Current Market Environment Missions
should fit the current market environment. (Kotler
p.52) ” Girl Scouts would not recruit successfully in today’s
environment with their former mission: “to prepare young girls for motherhood
and wifely duties.”
The Mission Statement is Based on Our
Competitive Advantage Competitive
advantage arises from leveraging a firm’s unique skills and resources to
implement value-creating strategy that competitors cannot implement as
effectively. Your company should base its mission on a competitively superior
internal strength or resource that the company performs well in comparison to
its competitors.
The
Mission Statement is Based on Our Distinctive Core Competencies. The
organization should base its mission on its distinctive competencies. (Kotler
p.52) A distinctive core competency is a competitively superior
company resource that the company performs well in comparison to its
competitors.(Thompson Strickland) It needs
to stay focused on specific traits (i.e., quality, customer service) and on
target or niche markets. McDonald’s core competence is providing low-cost food
and fast service to large groups of customers.
The Mission Statement Motivates and
Inspires Employee Commitment Mission
statements should be motivating. It should not be stated as making more sales
or profits. A company’s employees need to feel that their work is significant
and that it contributes to people’s lives. Visionary companies set a purpose
beyond making money. Even though profits may not be part of these companies’
mission statements, they are the inevitable results.(Kotler p.53).
A company that says its mission is to make
a profit begs the question “What will we do to make a profit?” To understand a company’s direction, we
must answer “to make a profit doing what and for whom?” (Thompson
Strickland, p.29).
Focus
on profit – IBM’s mission is “To become a $100 billion company by the end of
the century.” Focus on motivating – Microsoft’s mission is “information at your
fingertips.”
The Mission Statement is Realistic Mission statements should be realistic. The
company should avoid making the mission too narrow or too broad. (Kotler
p.50)
Southwest
Airlines would be deluding itself if it adopted the mission to become the
world’s largest airlines. Too broad – “providing society with superior products
and service – innovations and solutions that satisfy customer needs and improve
the quality of life.” Merck Too narrow – providing toys has proved too narrow a
scope for Toys-R-Us
The Mission Statement is Specific, Short
and Sharply Focused Mission
statements should be specific. Vague or generic mission statements lack
resonance and meaning. They won’t be remembered by anyone, and will likely be
dismissed as too difficult to understand. Many mission statements are written
for public relations purposes and lack specific, workable guidelines. It is a
precise statement of purpose. (Kotler p.51)
Too general
– “We want to become the leading company in this industry by producing the
highest-quality products with the best service at the lowest prices.” Very
specific – Celestial Seasonings’ mission statement is “Our mission is to grow
and dominate the U.S. specialty tea market by exceeding consumer expectations
with: The best tasting, 100% natural hot and iced teas, packaged with Celestial
art and philosophy, creating the most valued tea experience.”
It
should be memorable. Describe the essence of the business in words your
employees and customers can remember you by. Peter Drucker says the mission
should “fit on a T-shirt,” yet not be a slogan.. Don’t use the mission
statement as an essay or a vehicle for abstract philosophy. Words should be
chosen for their meaning rather than beauty, for clarity over cleverness. The
best mission statements are plan speech with no technical jargon and no
adornments.
International
Red Cross – “To serve the most vulnerable”
The Mission Statement is Clear and Easily
Understood. Develop
your mission statement to a “party level.” A simple, clear, “party level”
mission statement can be used to tell people you meet at a party or on
airplanes why your company exists. At the same time it needs to give your
company team as a profoundly simple focus for everything it does as a firm. (Bobb
Beihl)
The Mission Statement says What We Want to
be Remembered for. A
mission statement says what, in the end, you want to be remembered for. It is
actually an epitaph in present tense. What would you want your epitaph to read
some day? Your ideal can provide a profoundly simple insight into your purpose
for existing today. (Bobb Beihl)
1.
Establish a mission-writing group The writing group must be able to identify
the company’s reason for existing, the primary customer, and what the goals and
results should be. Members should include the chief executive, the board
chairman or another representative of the board, a writer, a manageable number
of additional members who represent different parts of the organization, and a
facilitator.
2.
Adopt criteria for an effective mission statement. Gather ideas and suggestions
for first drafts. The writing group should adopt the criteria they will use to
judge the effectiveness of the mission they are about to develop. Following the
adoption of criteria, the group moves on to ideas and suggestions for the
mission statement. Idea-generating techniques include:
·
Open brainstorming: any thought or idea is welcome.
·
Each group member finishes the sentence, “The mission should
be…”
·
Small teams “complete” in a very short time span to draft and
nominate the “best” new mission statement
·
Go around the group two or three times asking for the one word
that must be in the mission statement.
·
Each person quickly draws a picture of the mission, then “shows
and tells.”
To
conclude the exercise, the group:
·
Posts and reviews all ideas and suggestions. The facilitator
draws a circle around the words or phrases that appear most often.
·
Discusses key ideas or themes the must be captured in the new
statement.
·
Discusses key ideas or themes that must not be part of the new
mission statement.
3.
Develop one or more draft statements. The writers along or with a small group
develops drafts of at least two possible new mission statements.
4.
Judge initial drafts against criteria and suggest revisions or new options. To
judge drafts and make suggestions:
·
The groups reviews the
criteria for an effective mission statement.
·
The first draft statement is posted in front of the group.
·
Group members individually rate the draft for each criteria
using the worksheet.
·
The facilitator polls and records the group’s response for each
criteria to determine the overall strengths and we4aknesses of the draft.
·
The group discusses the merits of the draft and makes specific
suggestions for how it might be improved. All suggestions are encouraged and
recorded.
·
The second draft statement is posted and steps are repeated.
·
The facilitator instructs each group member to individually
write their recommended mission statement. Members read their statement aloud,
and give it to the writer.
·
The group discusses whether it has developed an effective
statement or whether the writer should develop a second set of drafts.
5.
Develop second drafts. The writer or small subgroup develops a second draft of
one or more possible new mission statements.
6. Gain
feedback from outside the writing groups. The board chairman and chief
executive decide who outside the writing group will be asked to give feedback.
This may includes organization wide input or a few key people inside or outside
the organization. Each individual group being contacted for their response is:
·
Shown the criteria for
an effective mission statement.
·
Asked for a rating of each draft, based on the criteria.
·
Asked for comments on the merits and weaknesses of the draft(s).
·
Asked for ideas or recommendations for improvement.
7.
Summarize feedback and distribute second drafts and summary to writing group.
8.
Propose a draft mission statement. The writing group meets:
·
Reviews the second
draft(s).
·
Discusses a summary of feedback from outside the writing group.
·
Rates the draft(s) against criteria and cites merits and
weaknesses
·
Attempts group editing or rewriting.
·
Approves its proposed mission statement..
9.
Presents the proposed mission statement for board approval.
Mission Statements for Functional Departments
There is a place for mission statements for key functions
(R&D, marketing, finance) and support units (human resources, training,
information systems). Every department can benefit from a consensus statement
spelling out its contribution to the company mission, its principal role and
activities, and the direction it needs to be moving. The following are some
examples: (Thompson Strickland, p.33)
·
The mission of the human
resources department is to contribute to organizational success by developing
effective leaders, creating high-performance teams, and maximizing the
potential of individuals.
·
The mission of corporate security is to provide services for the
protection of corporate personnel and assets through preventives measures and
investigations.
Shaped by five elements: 1. Its history – do not depart too
radically from past. 2. Current preferences of owners and management. 3. Market
environment. 4. Its resources. 5. Core competencies. CRITICAL
How to Write a Mission
Statement – Agency Management
Defining
an organizations mission statement is a fundamental aspect of beginning strategic
planning. Miss-representing the company’s mission can lead to strategic plans
that do not complement the company’s purpose and reason for being. The article
by Radtke (1998) takes a very simple three-step approach to writing a mission
statement. Several examples of mission statements from other organizations are
presented, and the article concludes with seven simple points that define the
goal of a mission statement. These last seven points can provide even the most
novice planner with a useful set of rules to get started on the right track for
creating a valuable mission statement.
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