We can see in the business world that this purpose isoften blurred or even completely forgotten. Many organizationshave difficulty understanding and communicating their identity and are therefore unable to convey to their shareholders, employees and customers their driving forces for existence and growth.
Some organizations have a mission that is well known to executives and even to employees as well. However, an interviewer asking employees of this organization how they understand the mission could very well receive a different interpretation from each person. That would suggest that the organization has failed to formulate a clear and concise Mission Statement.
An effective Mission Statement resonates with the people working in or for the organization. It expresses the organization’s purpose in a way that inspires commitment, innovation and dedication. It also draws a boundary around the organization to channel and focus its effort. A good Mission Statement leaves little room for interpretation and should even answer the question, “What does the company not do?” In that respect, the Mission Statement can also fend off risky business ventures which would compromise the foundation of the organization.
The Mission Statement relates to the enduring characteristics of the organization that are likely to remain constant over time. Missions do not change rapidly. They are static in their nature but require reality when faced with the fast changing business and political environment.
Business
The description of the business tells the story of what this company is doing and – most importantly – why. There is a fundamental reason why this company was created in the first place. That reason gives the company identity, and it defines the structure for activities and policies within the boundaries of the organization. By clarifying the current mission as well as the mission of the future, the organization promotes a concentration of effort for a successful business operation.
Customer
The nature of the offered service and product may only address a certain segment of the market. The Mission Statement must provide the essential framework of the targeted potential segments and area – it will focus on the desired clients. Consequently, the staff will not waste efforts promoting services and products to the wrong customers, and the sourcing customer will search further once they understand that they may not find the solution to their needs with this company.
Uniqueness
Why should someone buy from your company? What characteristic makes your offering unique? All customers want to be certain they have chosen the right company for solving their problems and satisfying their needs. Hence, every company must have a good argument for why customers should not choose a competitor for the same product or service. The Mission Statement provides the reason why your company has the leading edge and better solution.
A good Mission Statement is able to compress all the concepts described above into a few words or sentences and still make sense to the reader. The words chosen must be simple enough that everyone can relate to it and understand its meanings, regardless of whether the reader is street-smart, has an academic background, or both. This is a difficult venture and needs to be tested with various readers. If they are not able to answer the following questions after reading the statement, it has to be revised:
- What is your business?
- Who are your customers?
- Why should one do business with you?
If all questions are correctly answered, the Mission Statement is valid and can be used throughout the company. Make sure that the Mission Statement is distributed and accessible to everyone interested in your company.
