Mission Statement

What Is a Mission Statement?

A mission statement in business is a concise declaration outlining an organization's purpose, goals, and values.

It captures the company's reason for existence, primary objectives, and principles guiding its operations. It serves as a compass for decision-making and aligns stakeholders toward a common vision.

The statement outlines its mission, why it exists, and what function it fulfills. In addition to communicating objectives and a course of action to stakeholders, including customers, suppliers, and staff, the mission statement supports the vision.

The three most common expressions of a company's purpose are its mission, vision, and values. Businesses should have a clear mission statement that can inspire employees to join the team and foster enthusiasm for the company's objectives.

The mission statement, typically consisting of only a few phrases, should briefly define the company's business strategy.

How a Mission Statement Works

Writing a statement of mission can be a useful team-building exercise because statements of the mission are frequently the result of a team effort in the definition phase. Once created, this statement can quickly summarize the organization's general objectives.

The statement of mission has two purposes:

• It aids in keeping workers on task and motivates them to devise creative ways to boost productivity
• Meet organizational objectives

A business's mission statement identifies its culture, values, ethical standards, fundamental objectives, and agenda.

It also outlines how these guidelines should be applied to all parties that may have an interest in a firm, including its shareholders, employees, distributors, and suppliers. Using this declaration, organizations can align their objectives with those of the corporation.

The statement explains what the company does, how it does it, and why it does it. It can be used to determine whether a company's values are compatible with its own. Potential investors might also look at it.

Why is a Mission Statement Important?

Mission statements are vital for shaping a company's public image, often utilized by marketing departments. For instance, companies frequently feature them in the profiles section of their websites.

A well-crafted statement of mission can provide an organization with a strategic focus and inspire staff to cooperate in the pursuit of a common objective. 

Therefore, it is common for large corporations to invest significant time and resources, sometimes millions of dollars, in crafting and refining their mission statements, which can eventually become widely recognized phrases.

Additionally, statements of the mission aren't just for large and small businesses. Many prosperous individuals, professionals, and investors take the time to create personal mission statements.

These personal mission statements often cover financial, economic, spiritual, and marital aspects. As a result, people are better able to manage their personal and professional lives and achieve more in all of these areas.

Mission Statement Examples

It can be useful to check over examples of missions from well-known companies to get an idea of what your mission might entail.

1. Google: "To put information into a useful and accessible format for everyone"
2. Amazon: "Our goal is to run the most client-focused business on the planet. This is what binds Amazonians together despite differences in teams and locations since we are all working to please our customers and improve their lives one creative product, service, or idea at a time"
3. Tesla: "To hasten the shift of the globe to sustainable energy"
4. LinkedIn: "To establish connections among professionals so they can collaborate and become more successful"
5. Facebook:" To empower individuals to foster community and bring people from around the world together"

The aforementioned mission statement is an excellent example because it inspires people and offers a broad scope to explain what businesses can achieve.

Advantages and Disadvantages Of A Mission Statement

Mission statements carry both the pros and cons for a firm. Let's understand them below:

Advantages

It's useful for businesses. A mission has numerous advantages for a business or an individual. Here are some of the most important advantages.

1. It acts as a guiding compass amidst fierce competition, clarifying the company's objectives for clients, competitors, and stakeholders
2. It simplifies decision-making processes for management during discussions and disagreements
3. It eliminates ambiguity, ensuring everyone understands the organization's primary objectives
4. It fosters alignment within the organization, inspiring confidence in stakeholders about the business's commitment to its goals
5. It maintains focus and facilitates effective decision-making for the company's future
6. It provides a quick reference for managers in their day-to-day tasks

Disadvantages

Despite its benefits, mission statements can pose certain challenges, such as:

1. Overly ambitious missions may confuse employees and distract management from immediate, crucial steps
2. Crafting a mission statement requires significant time and resources, which could be used elsewhere
3. Disagreements from both internal and external parties may arise, leading to conflicts and inconsistency
4. Poor design and implementation can render a mission statement unclear or pointless
5. Previous mission statements may have already been accomplished, making the current one redundant

Mission Statements vs. Other Concepts

Frequently, a statement of mission is misunderstood or mixed with other organizational declarations. Here are a few additional forms of content and how they differ from it:

Mission Statement vs. Vision Statement

Although businesses frequently use mission and vision statements interchangeably, a company's mission statement is distinct from a vision statement. In actuality, a company's mission serves as its identity, and its vision represents its path toward achieving that mission.

A mission statement explains what the organization is doing or wants to do, while a vision statement explains what it wants to achieve in the future.

Mission Statement vs. Value

Corporate values, which list the guiding principles that direct and drive the corporation and its culture, are frequently referred to in business circles as core values. 

Team leaders and managers can better direct the team in terms of ethics and performance by using the values that each member holds dear.

Additionally, corporate values can serve as a guide for decision-making and a benchmark for evaluating performance. These guiding principles represent a system adopted and utilized by the leadership.

Mission Statement vs. Company Goals

The establishment of a mission statement gives a company a distinct and concentrated direction. Typically, business objectives are more detailed and may focus on certain company lines, growth rates, regions, or new projects.

Corporate goals are usually specific to departments or products, while mission statements generally encompass broader objectives to allow the corporation to monitor overall success.

Mission Statement vs. Brand Statement

Your brand is about the customer, whereas your mission is about you.

Recognizing the difference between a company's identity and what its customers want is crucial when working with one dedicated to its purpose.

Mission Statement vs. Slogan

A slogan is a very concise, frequently memorable phrase that aims to stick in the minds of those outside of your business. 

A catchy tagline like "The Happiest Place on Earth" can evoke good memories, advertisements, signs, brand ambassadors, and feelings through an effective marketing campaign.

The mission statement is longer and comparatively more thorough than the slogan. It's not necessary for a statement of mission to be catchy; its main goal is to provide information that may be used to help with high-level decision-making.

Conversely, a tagline is a concise and impactful marketing phrase that may prioritize creativity over conveying detailed information.

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Strategic Management
• Strategic Planning
• The Importance of Cash Flow Optimization
• Total Addressable Market (TAM)
• Vision Statement