What is a Mission Statement?

2021-05-24

what

In the business world, a mission statement is a concise expression of a company's purpose. It articulates the company's reason for being and serves as a guide for its actions. A well-crafted mission statement should be inspiring, memorable, and actionable. It should also be specific enough to provide direction, but not so specific that it limits the company's ability to adapt to changing circumstances.

Mission statements are often confused with vision statements. While both statements describe a company's future, a mission statement focuses on the present, while a vision statement focuses on the future. A mission statement answers the question, "What do we do?" A vision statement answers the question, "What do we want to become?"

Mission statements are essential for any organization that wants to achieve success. They provide a clear sense of direction and help to motivate employees. They also help to create a positive image for the company and attract customers.

What is a Mission Statement

A mission statement is a concise expression of a company's purpose.

Defines company's purpose
Provides direction and motivation
Creates positive image
Attracts customers
Guides decision-making
Unifies employees
Inspires stakeholders
Differentiates from competitors
Basis for strategic planning

A well-crafted mission statement should be inspiring, memorable, and actionable.

Defines company's purpose

A mission statement defines a company's purpose by articulating its reason for being. It answers the question, "Why do we exist?" A clear and concise mission statement helps to align employees, stakeholders, and customers around a common goal. It also provides a framework for decision-making and strategic planning.

A well-crafted mission statement should be:

Specific: It should clearly state the company's purpose and goals.
Measurable: It should include metrics that can be used to track progress towards achieving the company's goals.
Achievable: It should be realistic and attainable.
Relevant: It should be relevant to the company's industry, customers, and employees.
Time-bound: It should include a timeframe for achieving the company's goals.

Here are some examples of mission statements that effectively define a company's purpose:

Google: "To organize the world's information and make it universally accessible and useful."
Amazon: "To be the Earth's most customer-centric company, where people can find and discover anything they might want to buy online."
Nike: "To bring inspiration and innovation to every athlete* in the world."

These mission statements clearly articulate the company's purpose and provide a framework for decision-making and strategic planning.

A strong mission statement is an essential tool for any company that wants to achieve success. It provides a clear sense of direction and helps to motivate employees. It also helps to create a positive image for the company and attract customers.

Provides direction and motivation

A mission statement provides direction and motivation by giving employees a clear understanding of the company's purpose and goals. When employees know what the company is trying to achieve, they are more likely to be motivated to work towards those goals. A mission statement can also help to align the efforts of different departments and teams within a company, ensuring that everyone is working together towards a common objective.

Here are some ways in which a mission statement can provide direction and motivation:

It creates a sense of purpose: When employees understand the company's mission, they feel a sense of purpose and belonging. They know that their work is contributing to something meaningful.
It provides a framework for decision-making: When employees are faced with a difficult decision, they can refer to the mission statement to help them make the right choice. The mission statement can also help to resolve conflicts between different departments or teams.
It motivates employees to go the extra mile: When employees are motivated by the company's mission, they are more likely to go the extra mile to achieve the company's goals. They are also more likely to be creative and innovative in their work.

Here are some examples of how mission statements have been used to provide direction and motivation:

Google: Google's mission statement, "To organize the world's information and make it universally accessible and useful," has inspired employees to develop innovative products and services that have changed the way people access and use information.
Amazon: Amazon's mission statement, "To be the Earth's most customer-centric company, where people can find and discover anything they might want to buy online," has motivated employees to provide excellent customer service and to develop new products and services that meet the needs of customers.
Nike: Nike's mission statement, "To bring inspiration and innovation to every athlete* in the world," has inspired employees to develop innovative products and marketing campaigns that have helped to make Nike one of the most popular athletic brands in the world.

These examples show how a strong mission statement can provide direction and motivation to employees, helping them to achieve great things.

A well-crafted mission statement is an essential tool for any company that wants to achieve success. It provides a clear sense of direction, motivates employees, and helps to create a positive image for the company.

Creates positive image

A mission statement can help to create a positive image for a company in the eyes of its customers, employees, and other stakeholders. A well-crafted mission statement that is authentic and inspiring can make a company seem more trustworthy, reliable, and socially responsible.

Here are some ways in which a mission statement can create a positive image for a company:

It demonstrates the company's values: A mission statement can be used to communicate the company's values to its stakeholders. When customers, employees, and other stakeholders see that a company has strong values that they agree with, they are more likely to develop a positive image of the company.
It shows the company's commitment to its customers: A mission statement that is focused on providing value to customers can create a positive image for the company. Customers are more likely to do business with a company that they believe is committed to meeting their needs.
It attracts talented employees: A mission statement that is inspiring and motivating can attract talented employees who are looking for a company that they can be proud to work for. Talented employees can help the company to achieve its goals and objectives.

Here are some examples of how mission statements have been used to create a positive image for companies:

Google: Google's mission statement, "To organize the world's information and make it universally accessible and useful," has helped to create a positive image of the company as a leader in innovation and technology.
Amazon: Amazon's mission statement, "To be the Earth's most customer-centric company, where people can find and discover anything they might want to buy online," has helped to create a positive image of the company as a reliable and customer-focused retailer.
Nike: Nike's mission statement, "To bring inspiration and innovation to every athlete* in the world," has helped to create a positive image of the company as a leader in athletic apparel and footwear.

These examples show how a strong mission statement can be used to create a positive image for a company, which can lead to increased sales, improved employee morale, and a stronger brand reputation.

A well-crafted mission statement is an essential tool for any company that wants to achieve success. It provides a clear sense of direction, motivates employees, creates a positive image for the company, and attracts customers.

Attracts customers

A mission statement can attract customers by communicating the company's values and commitment to providing value. When customers see that a company has a strong mission statement that they agree with, they are more likely to do business with that company. They are also more likely to be loyal customers and to recommend the company to their friends and family.

Here are some ways in which a mission statement can attract customers:

It demonstrates the company's values: A mission statement can be used to communicate the company's values to its customers. When customers see that a company has strong values that they agree with, they are more likely to develop a positive image of the company and to do business with them.
It shows the company's commitment to providing value: A mission statement that is focused on providing value to customers can attract customers. Customers are more likely to do business with a company that they believe is committed to meeting their needs.
It creates a sense of community: A mission statement can create a sense of community among customers who share the company's values. This sense of community can lead to increased customer loyalty and advocacy.

Here are some examples of how mission statements have been used to attract customers:

TOMS Shoes: TOMS Shoes' mission statement, "One for One®," means that for every pair of shoes purchased, the company donates a pair of shoes to a child in need. This mission statement has attracted customers who are looking for a company that is committed to making a positive social impact.
Patagonia: Patagonia's mission statement is "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis." This mission statement has attracted customers who are looking for a company that is committed to environmental sustainability.
IKEA: IKEA's mission statement is "To create a better everyday life for the many people." This mission statement has attracted customers who are looking for a company that offers affordable, well-designed products.

These examples show how a strong mission statement can be used to attract customers by communicating the company's values, commitment to providing value, and sense of community.

Guides decision-making

A mission statement can be used to guide decision-making at all levels of a company. When employees are faced with a difficult decision, they can refer to the mission statement to help them make the right choice. The mission statement can also help to resolve conflicts between different departments or teams.

Here are some ways in which a mission statement can be used to guide decision-making:

It provides a framework for decision-making: A mission statement can provide a framework for decision-making by articulating the company's goals and values. When employees are making decisions, they can ask themselves if the decision is aligned with the company's mission statement. If it is, then they are more likely to make the right decision.
It helps to resolve conflicts: A mission statement can also help to resolve conflicts between different departments or teams. When there is a conflict, the parties involved can refer to the mission statement to find common ground. The mission statement can also help to remind employees of the company's overall goals and values, which can help to resolve conflicts.
It helps to prioritize projects and initiatives: A mission statement can also be used to prioritize projects and initiatives. When a company is considering a new project or initiative, they can ask themselves if it is aligned with the company's mission statement. If it is, then it is more likely to be a priority for the company.

Here are some examples of how mission statements have been used to guide decision-making:

Google: Google's mission statement, "To organize the world's information and make it universally accessible and useful," has guided the company's decision-making in a number of ways. For example, the company's decision to develop a search engine was based on the belief that information should be accessible to everyone. The company's decision to offer free services, such as Gmail and YouTube, was also based on the belief that information should be accessible to everyone.
Amazon: Amazon's mission statement, "To be the Earth's most customer-centric company, where people can find and discover anything they might want to buy online," has guided the company's decision-making in a number of ways. For example, the company's decision to offer free shipping on orders over $25 was based on the belief that customers should have a convenient and affordable shopping experience. The company's decision to develop a customer loyalty program, Amazon Prime, was also based on the belief that customers should be rewarded for their loyalty.
Nike: Nike's mission statement, "To bring inspiration and innovation to every athlete* in the world," has guided the company's decision-making in a number of ways. For example, the company's decision to develop innovative products, such as the Air Jordan sneakers, was based on the belief that athletes should have access to the best possible products. The company's decision to sponsor athletes, such as Michael Jordan and LeBron James, was also based on the belief that athletes can inspire others to achieve their goals.

These examples show how a strong mission statement can be used to guide decision-making at all levels of a company, helping the company to achieve its goals and objectives.

Unifies employees

A mission statement can unify employees by giving them a common goal to strive for. When employees understand the company's mission and believe in it, they are more likely to be motivated to work together towards achieving that mission. A mission statement can also help to break down silos between different departments or teams and create a sense of unity and camaraderie among employees.

Here are some ways in which a mission statement can unify employees:

It creates a sense of purpose: When employees understand the company's mission, they feel a sense of purpose and belonging. They know that their work is contributing to something meaningful.
It provides a common goal: A mission statement can provide employees with a common goal to strive for. This can help to motivate employees and to align their efforts.
It breaks down silos: A mission statement can help to break down silos between different departments or teams. When employees understand that they are all working towards a common goal, they are more likely to collaborate and cooperate with each other.
It creates a sense of unity: A mission statement can create a sense of unity and camaraderie among employees. When employees feel like they are part of a team that is working towards a common goal, they are more likely to be loyal to the company and to each other.

Here are some examples of how mission statements have been used to unify employees:

Google: Google's mission statement, "To organize the world's information and make it universally accessible and useful," has helped to unify employees by giving them a common goal to strive for. Employees at Google are passionate about making information accessible to everyone, and they are motivated to work together to achieve this goal.
Amazon: Amazon's mission statement, "To be the Earth's most customer-centric company, where people can find and discover anything they might want to buy online," has helped to unify employees by giving them a common goal to strive for. Employees at Amazon are passionate about providing customers with the best possible shopping experience, and they are motivated to work together to achieve this goal.
Nike: Nike's mission statement, "To bring inspiration and innovation to every athlete* in the world," has helped to unify employees by giving them a common goal to strive for. Employees at Nike are passionate about helping athletes achieve their goals, and they are motivated to work together to achieve this goal.

These examples show how a strong mission statement can be used to unify employees, creating a more motivated, productive, and loyal workforce.

Inspires stakeholders

A mission statement can inspire stakeholders by articulating the company's purpose and values in a clear and concise way. When stakeholders understand the company's mission, they are more likely to be supportive of the company and its goals.

Employees: A mission statement can inspire employees by giving them a sense of purpose and belonging. When employees understand the company's mission and believe in it, they are more likely to be motivated to work hard and to go the extra mile. A mission statement can also help to attract talented employees who are looking for a company that they can be proud to work for.
Customers: A mission statement can inspire customers by showing them that the company is committed to providing value. When customers see that a company has a strong mission statement that they agree with, they are more likely to do business with that company. A mission statement can also help to build customer loyalty.
Investors: A mission statement can inspire investors by showing them that the company has a clear vision for the future. When investors see that a company has a strong mission statement, they are more likely to invest in that company. A mission statement can also help to increase the company's stock price.
Suppliers: A mission statement can inspire suppliers by showing them that the company is committed to building a long-term relationship. When suppliers see that a company has a strong mission statement, they are more likely to provide the company with high-quality goods and services. A mission statement can also help to reduce supplier costs.

These are just some of the ways in which a mission statement can inspire stakeholders. A well-crafted mission statement can be a powerful tool for motivating and aligning stakeholders around a common goal.

Differentiates from competitors

A mission statement can differentiate a company from its competitors by articulating the company's unique purpose and values. When customers see that a company has a strong mission statement that they agree with, they are more likely to choose that company over its competitors. A mission statement can also help to attract talented employees who are looking for a company that they can be proud to work for.

Creates a unique identity: A mission statement can help to create a unique identity for a company. When a company has a strong mission statement, it can stand out from its competitors and be more easily remembered by customers. A mission statement can also help to create a sense of community among employees and customers.
Attracts customers who share the company's values: A mission statement can attract customers who share the company's values. When customers see that a company has a strong mission statement that they agree with, they are more likely to do business with that company. A mission statement can also help to build customer loyalty.
Motivates employees to go the extra mile: A mission statement can motivate employees to go the extra mile. When employees understand the company's mission and believe in it, they are more likely to be motivated to work hard and to do their best. A mission statement can also help to attract talented employees who are looking for a company that they can be proud to work for.
Helps the company to make better decisions: A mission statement can help the company to make better decisions. When the company is faced with a difficult decision, it can refer to its mission statement to help it make the right choice. A mission statement can also help to keep the company focused on its long-term goals.

These are just some of the ways in which a mission statement can differentiate a company from its competitors. A well-crafted mission statement can be a powerful tool for attracting customers, motivating employees, and making better decisions.

Basis for strategic planning

A mission statement can be used as a basis for strategic planning. When a company is developing its strategic plan, it can refer to its mission statement to help it identify its goals and objectives. A mission statement can also help the company to prioritize its projects and initiatives and to allocate its resources accordingly.

Provides a clear direction: A mission statement can provide a clear direction for strategic planning. When the company is developing its strategic plan, it can refer to its mission statement to help it identify its goals and objectives. A mission statement can also help the company to stay focused on its long-term goals.
Helps to prioritize projects and initiatives: A mission statement can help the company to prioritize its projects and initiatives. When the company is faced with a number of different projects and initiatives, it can refer to its mission statement to help it decide which projects and initiatives are most important. A mission statement can also help the company to allocate its resources accordingly.
Helps to make better decisions: A mission statement can help the company to make better decisions. When the company is faced with a difficult decision, it can refer to its mission statement to help it make the right choice. A mission statement can also help the company to stay focused on its long-term goals.
Helps to communicate the company's strategy to employees and stakeholders: A mission statement can help the company to communicate its strategy to employees and stakeholders. When employees and stakeholders understand the company's mission and goals, they are more likely to be supportive of the company's strategy.

These are just some of the ways in which a mission statement can be used as a basis for strategic planning. A well-crafted mission statement can be a powerful tool for helping a company to achieve its long-term goals.

FAQ

Have more questions about mission statements? Here are some frequently asked questions and their answers:

Question 1: What is a mission statement?
Answer: A mission statement is a concise expression of a company's purpose. It articulates the company's reason for being and serves as a guide for its actions. A well-crafted mission statement should be inspiring, memorable, and actionable.

Question 2: Why is a mission statement important?
Answer: A mission statement is important because it provides a clear sense of direction for a company. It helps employees, customers, and other stakeholders understand the company's purpose and goals. A mission statement can also help to motivate employees, create a positive image for the company, and attract customers.

Question 3: What are some examples of mission statements?
Answer: Some examples of mission statements include: - Google: "To organize the world's information and make it universally accessible and useful." - Amazon: "To be the Earth's most customer-centric company, where people can find and discover anything they might want to buy online." - Nike: "To bring inspiration and innovation to every athlete* in the world."

Question 4: How can I write a mission statement for my company?
Answer: To write a mission statement for your company, you should: 1. Define your company's purpose. 2. Identify your company's values. 3. Write a draft of your mission statement. 4. Get feedback from employees, customers, and other stakeholders. 5. Revise your mission statement until you are satisfied with it.

Question 5: How often should I review my mission statement?
Answer: You should review your mission statement regularly, such as every year or two. This will ensure that your mission statement is still relevant and aligned with your company's goals and values.

Question 6: What are some tips for writing an effective mission statement?
Answer: Some tips for writing an effective mission statement include: - Keep it concise and to the point. - Use clear and simple language. - Make it memorable and inspiring. - Ensure that it is aligned with your company's values and goals. - Get feedback from employees, customers, and other stakeholders.

These are just some of the most frequently asked questions about mission statements. If you have any other questions, please feel free to contact a business consultant or advisor.

Now that you know more about mission statements, you can start to develop one for your own company. Follow the tips above to write a mission statement that is clear, concise, and inspiring.

Tips

Here are four practical tips for writing an effective mission statement:

Tip 1: Keep it concise and to the point. Your mission statement should be short and sweet. Aim for something that is around 10-15 words long. This will make it easy for employees, customers, and other stakeholders to remember and understand.

Tip 2: Use clear and simple language. Avoid using jargon or technical terms that your audience may not understand. Use clear and simple language that everyone can understand.

Tip 3: Make it memorable and inspiring. Your mission statement should be something that people can easily remember and that inspires them to action. Use strong verbs and vivid imagery to create a mission statement that is both memorable and inspiring.

Tip 4: Ensure that it is aligned with your company's values and goals. Your mission statement should be a reflection of your company's values and goals. It should be something that your employees can rally behind and that will help you to achieve your long-term goals.

Closing Paragraph for Tips: By following these tips, you can write a mission statement that is clear, concise, inspiring, and aligned with your company's values and goals. This will help you to create a company that is successful and sustainable in the long run.

Now that you have some tips for writing an effective mission statement, you can start to develop one for your own company. Take your time and get feedback from employees, customers, and other stakeholders. With a little effort, you can create a mission statement that will inspire your team and help you to achieve your goals.

Conclusion

A mission statement is a concise expression of a company's purpose. It articulates the company's reason for being and serves as a guide for its actions. A well-crafted mission statement should be inspiring, memorable, and actionable.

Mission statements are important because they provide a clear sense of direction for a company. They help employees, customers, and other stakeholders understand the company's purpose and goals. A mission statement can also help to motivate employees, create a positive image for the company, and attract customers.

To write an effective mission statement, you should keep it concise and to the point, use clear and simple language, make it memorable and inspiring, and ensure that it is aligned with your company's values and goals.

By following these tips, you can write a mission statement that will inspire your team and help you to achieve your goals. A strong mission statement is an essential tool for any company that wants to achieve success.

Closing Message: A mission statement is more than just words on a page. It is a living document that should be used to guide your company's decision-making and actions. When you have a clear and compelling mission statement, you will be better able to achieve your goals and create a company that is successful and sustainable in the long run.