4 Advantages Of A Strong Company Mission Statement
What is a Mission Statement?
A mission statement is a formal summary of the aims and values of a company, organization, or individual.
It is a short statement of what fundamentally matters to the organization. More than a description of the organization, the mission statement is an expression of the desires and intentions for the organization.
Four Advantages of Having a Mission Statement
Provides Company Direction
A mission statement helps outline your company’s direction and gives your employees defined objectives. It gives the leaders and employees something to reference when developing strategies, and performing their day-to-day tasks.
Without a mission statement the business leaders may struggle when planning for the future. Often times having an understanding of why you do what you do is even more important than what you do.
Successful business owners use their mission statement as a foundation to developing strategies and vision to grow the organization.
Acts As A Guideline For Decision Making
Another important job of the mission statement is to act as a guideline for decision making within a company.
A clear sense of what matters helps employees make sound judgments in the day to day operations and assists in setting priorities. This clarity inspires conviction and dedication. Employees can go back and compare their decisions to the overall mission of the company and evaluate whether or not the correct decision was made.
Improves Strategic Alignment
Alignment begins with a clear purpose. Or in other words, the why of the organization. How, who, when, and where are secondary to the reason for a company’s existence.
Mission can help leaders establish and balance priorities, as well as set goals. A clear sense of what matters helps leaders determine the best path for the company and helps them determine if the organization is moving in the right direction.
Fosters Customer Engagement
A strong mission promotes brand differentiation, increases customer passion, and accelerates brand engagement.
Unfortunately, only about 41% of employees know what their company stands for and what makes its brand different from its competitors’.
This lack of brand awareness is not a marketing problem. It is a leadership problem!
Your company likely has a mission statement, but do you function and live by it as a team? After all, a mission defines and upholds what you stand for as a company.
If your mission is underutilized, I question:
- When was your mission last written?
- Is your mission a short, one line statement that you and your employees can recite?
- Does the mission state, with action words, how your company uniquely serves the world?
If your mission was established many, many years ago, is more than one line, and is not based on action, I bet your mission is underutilized.
When you seek to improve the engagement with your employees and your customers, you must first start with your mission statement.
I get it! Changing a mission can be a daunting task.
It can cause some disruption with the very people that created it.
But, your company rises and falls on its mission.
The highest performing organizations are linked to being mission driven companies.
Gallup discovered that margin and mission are not at odds with one another. In fact, the opposite is true. Employees who understand their contribution to the organization have higher productivity and connect the customer to the benefit of the organization. The result, higher profits.
Here are some great company mission statements:
Warby Parker: To offer designer eyewear at a revolutionary price, while leading the way for socially conscious businesses.
Tesla: To accelerate the world’s transition to sustainable energy.
Nordstrom: To give customers the most compelling shopping experience possible.
Prezi: To reinvent how people share knowledge, tell stories, and inspire their audiences to act.
Why are these so good?
These missions are simple, one line statements. It speaks to how they uniquely serve the world with their why.
Here are some examples that are not so great:
Universal Health Services, Inc.: To provide superior quality healthcare services that: PATIENTS recommend to family and friends, PHYSICIANS prefer for their patients, PURCHASERS select for their clients, EMPLOYEES are proud of, and INVESTORS seek for long-term returns.
Albertsons: Guided by relentless focus on our five imperatives, we will constantly strive to implement the critical initiatives required to achieve our vision. In doing this, we will deliver operational excellence in every corner of the Company and meet or exceed our commitments to the many constituencies we serve. All of our long-term strategies and short-term actions will be molded by a set of core values that are shared by each and every associate.
Some of the world’s best-known brands have some of the most awful mission statements. Overly wordy, terminally vague, or just uninspiring. The result, they are underutilized and priorities, decision-making, direction and engagement can be foggy.
Build A Strong Mission Statement
A strong mission provides leaders a framework for the direction of the company, a platform for decision making, a foundation for strategic direction, and engagement with customers. A mission-driven company steers itself toward success and high achievement.
Although the process of writing a mission statement may seem daunting, it is an important task for the future of your company. Before starting, I would love for you to reach out to me for a Free Consultation.