Corporate Mission Statement: Key Points and Explanation
A mission statement is a critical tool for any well-run business, serving as the “why” of business strategy. It defines the company’s goals in several important ways:
- Defines What the Company Does for Its Customers:
- Explains the value the company provides to its customers.
- Highlights how the company differentiates itself from competitors.
- Focuses on the specific benefits and unique offerings the company delivers.
- Defines What the Company Does for Its Employees:
- Outlines the company’s commitment to creating a positive work environment.
- Emphasizes values like fairness, respect, diversity, and opportunities for growth.
- Aims to attract and retain talent by promoting a culture of support and empowerment.
- Defines What the Company Does for Its Owners:
- States the company’s goals for enhancing the financial position of its owners.
- Reflects the owners’ priorities, whether it’s growth, profit, or a positive work environment.
- Balances financial goals with other aspects like peace of mind and workplace satisfaction.
- Defines What the Company Does for Its Community and the World (optional):
- Includes broader objectives such as social responsibility and environmental sustainability.
- Positions the company as a socially-conscious entity.
- Communicates the company’s commitment to making a positive impact beyond profit.
Steps to Craft a Mission Statement
1. Start with a Market-Defining Story:
- Imagine a real customer making a purchase decision.
- Understand their needs, how they find you, and what benefits they gain.
- This story guides the creation of a concrete and relatable mission statement.
2. Define What Your Business Does for Its Customers:
- Focus on the good your business provides.
- Highlight specific ways your business stands out in meeting customer needs.
- Include any broader benefits to society if relevant and true.
3. Define What Your Business Does for Its Employees:
- Outline the company’s values and commitments to its workforce.
- Specify how the company supports employee growth and a positive work environment.
- Avoid generic claims; make it specific and actionable.
4. Add What the Business Does for Its Owners:
- Reflect on the owners’ goals and how the business meets them.
- This may include financial stability, growth, or a fulfilling workplace.
- Though not common, this can add depth to the mission statement.
5. Discuss, Digest, Cut, Polish, Review, Revise:
- Edit for clarity and brevity.
- Consider separate versions for internal and external audiences if needed.
- Use clear, specific language and avoid buzzwords.
- Gather feedback from others and revise as necessary.
- Regularly review and update the mission statement to ensure it remains relevant.
Examples of Effective Mission Statements
American Express:
- “We have a mission to be the world’s most respected service brand. To do this, we have established a culture that supports our team members, so they can provide exceptional service to our customers.”
Warby Parker:
- “Warby Parker was founded with a rebellious spirit and a lofty objective: to offer designer eyewear at a revolutionary price, while leading the way for socially-conscious business.”
Conclusion
A well-crafted mission statement is a guiding star for a company, defining its purpose and direction. It should be clear, specific, and reflective of the company’s unique qualities. Regularly reviewing and updating the mission statement ensures it continues to serve as a valuable tool for strategic decision-making and organizational alignment.