A mission statement should address an organizations
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Defines what line of business a company is in and what purpose it serves Show
What is a Mission Statement?A mission statement defines what line of business a company is in, and why it exists or what purpose it serves. Every company should have a precise statement of purpose that gets people excited about what the company does and motivates them to become part of the organization. A mission statement should also define the company’s corporate strategy and is generally a couple of sentences in length. Example of a Mission StatementLet’s look at Microsoft Corp.’s mission statement. Microsoft Corp. is an American multinational company that develops, manufactures, licenses, and sells technology products, including computer software, electronics, and personal computers. It is also one of the largest corporations in the world, alongside companies such as Apple, Inc. and Amazon.com, Inc. Microsoft’s mission is: The statement above is a good example of a mission statement because it provides a broad enough scale of scope to explain what the company can do, and it is also inspirational – it’s all about empowering people. It is the kind of statement that people can get excited about and can rally behind. It also defines Microsoft’s strategy, which is reaching out to the whole world and making an influence on all individuals and organizations. Why is a Mission Statement Important?As shown in the diagram above, the combination of a mission statement, vision, and values tells a full story about Microsoft’s businesses and points out the things that matter to the company. Being able to build an influential statement is the first step to business success because all strategies are developed and executed with a solid mission as the foundation. The statement guides the management team in implementing strategies that help reinforce the company’s identity and achieve its goals. It is important for:
The Rise of a Purpose StatementThe mission statement, vision, and values are traditionally the three most common descriptions of a business that explain why a company exists. In recent years, another type of statement has also emerged in the business world and is gaining more popularity. This type of statement is called a purpose statement. A purpose statement conveys a company’s reason for existence, just as the mission statement and vision do, but it also shows the connection between the brand identity and workplace culture of the company. It combines the components of a mission statement, vision, and values into a single statement. More ResourcesThank you for visiting our resource on how companies can use a mission statement to help support their overall strategy. To learn more about business strategy, check out our Corporate & Business Strategy course, which covers all important terminologies and theories on strategy, and demonstrates the whole strategic analysis process. Additional relevant CFI resources include:
10 MIN READ Unleashing the Power of PurposeImagine going to work each day, full of purpose and conviction. You strongly believe in your organization's values, and you are passionately committed to its mission. Because you understand the good that your organization does in the world, you love what you do. You're happy to come into the office, and you put your heart and soul into your work, because you know it matters. People can be genuinely inspired if their organization has a compelling vision and a clear, worthwhile mission; and these can be powerfully expressed in well-crafted mission and vision statements. Click here to view a transcript of this video. These statements can be highly motivating when they are expressed clearly and with intent, and when they are communicated effectively to everyone in your organization. They also express your organization's purpose to customers, suppliers and the media, on whom they can have the same effect. In this article, we'll explore how to create motivating mission and vision statements. Mission and Vision Statements ExplainedThese statements are the words leaders use to explain an organization's purpose and direction. When expressed clearly and concisely, they can motivate your team, or the organization as a whole, with an inspiring vision of the future. The two statements do distinctly different jobs: PurposeMission statements define your organization's purpose and its primary objectives. They are set in the present tense, and explain why you exist as a business, both to members of your organization and to people outside it. Mission statements tend to be short, clear and powerful. Vision statements also define your organization's purpose, but they focus on its goals and aspirations. These statements are designed to be uplifting and inspiring. They're also timeless: even if the organization changes its strategy, the vision will often stay the same. ApplicationUsually, people write these statements for an organization, or for an organizational unit or a team. You can also create statements to define the goals of long-term projects or initiatives. ExamplesSome examples of Mission Statements are shown below:
Some examples of Vision Statements are shown below:
Tip:These examples are concise, focused and inspiring. Do everything you can to make your statements similarly succinct – long, rambling statements can be difficult to decipher and lead to confusion. How to Create a Mission StatementTo develop your mission statement, follow the steps below: Step 1: Develop Your Winning IdeaFirst, identify your organization's "winning idea," or unique selling proposition (USP). This is the idea or approach that makes your organization stand out from its competitors, and it is the reason that customers come to you and not your competitors. Step 2: Clarify Your GoalNext, make a short list of the most important measures of success for your winning idea. For instance, if it is to create cutting-edge products in a particular industry, how will you know when you've accomplished this goal? If your idea is to provide excellent customer service, what key performance indicator will let you know that your customers are truly satisfied? You don't have to include exact figures here, but it's important to have a general idea of what success looks like, so that you know when you've achieved it. Combine your winning idea and success measures into a general, but measurable goal. Refine the words until you have a concise statement that expresses your ideas, measures and a desired result. Keep this statement in the present tense, and make sure it is short, simple, clear, and free of jargon. Yes, the language needs to be inspiring, but don't include adjectives just so it "sounds better." Example 1Produce store Farm Fresh Produce's winning idea is to "provide farm freshness." The owner identifies two key measures of the company's success: freshness and customer satisfaction. She creates the following mission statement, which combines the winning idea and her measures of success: "To be the number one produce store in Main Town by selling the highest quality, freshest farm produce directly from farm to customer, with high customer satisfaction." Example 2Carl has just become the leader of a new team. The team will focus on one key project: streamlining the organization's internal databases, so that the entire system runs smoothly and without problems. With this in mind, Carl creates a mission statement to guide his team's understanding of their purpose: "Our team's goal is to streamline our organization's database management system within 12 months. We will develop a new system that is easy to use and reduces the frequency of user errors." How to Create a Vision StatementStep 1: Find the Human Value in Your WorkFirst, identify your organization's mission. Then uncover the real, human value in that mission. For example, how does your organization improve people's lives? How do you make the world a better place? Our articles on working with purpose and The Triple Bottom Line include tips that you can use to find the deeper meaning in what you do. Step 2: Distill Into ValuesNext, identify what you, your customers and other stakeholders value the most about how your organization will achieve this mission. Distill these into values that your organization has, or should have. Some examples of values include excellence, integrity, teamwork, originality, equality, honesty, freedom, service, and strength. Get the Free NewsletterLearn essential career skills every week, plus get a bonus Essential Strategy Checklist, free! Read our Privacy Policy If you have a hard time identifying your organization's values, talk to your colleagues and team members. What values do they think the organization stands for, or that it should stand for? Step 3: Combine Your Mission and ValuesCombine your mission and values, and polish your words until you have an inspiring statement that will energize people, inside and outside your organization. It should be broad and timeless, and it should explain why the people in your organization do what they do. Example 1The owner of Farm Fresh Produce examines what she, her customers and her employees value about her mission. The four most important values that she identifies are freshness, healthiness, tastiness, and the "local-ness" of the produce. Here's the vision statement that she creates and shares with employees, customers and farmers alike: "We encourage the families of Main Town to live happier and healthier lives by providing the freshest, tastiest, and most nutritious local produce from local farms to their table." Example 2Carl looks at the values that are key to achieving his team's goal, and considers their mission statement. He identifies several important values, such as challenge, dependability and teamwork. He then creates this statement that combines his team's mission and values: "We will challenge our skills and abilities, and create a database system that's strong, dependable and intuitive, allowing our colleagues to work quickly and effortlessly."
Key PointsMission and vision statements are concise, inspiring statements that clearly communicate the direction and values of an organization. These statements can powerfully explain your intentions, and they can motivate your team or organization to realize an inspiring vision of the future. When writing them, make sure that you understand your organization's USP, or "winning idea." You'll also need to clarify your organization's values, and distill them into statements that are concise, engaging and uplifting. What does a mission statement address?A mission statement is a brief description of an organization's reason for existence. It succinctly outlines your company's values and vision, communicating your purpose and direction to employees, customers, vendors, and other stakeholders.
What should be in a mission statement?A mission statement is defined as an action-based statement that declares the purpose of an organization and how they serve their customers. This sometimes includes a description of the company, what it does, and its objectives. A mission statement is a short summary of your company's purpose.
How does it address the vision and mission of an organization?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.
What are the 3 key things a mission statement should have?Typically, a mission statement includes a basic description of the company, its purpose, and its goals.
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