Edit filter log

'{{Dablink|"Statement of purpose" redirects here. For use in the [[university and college admissions]], see [[admissions essay]].}} {{More citations needed|date=April 2017}} A '''mission statement''' is a short statement of why an organization exists, what its overall goal is, identifying the goal of its operations: what kind of product or service it provides, its primary customers or [[Market (economics)|market]], and its geographical region of operation.<ref name=Entrepreneur/><ref name=Gibson/> It may include a short statement of such fundamental matters as the organization's values or philosophies, a business's main competitive advantages, or a desired future state—the "vision".<ref name=Entrepreneur/><ref name=Hill/> A mission is not simply a description of an organization by an external party, but an expression, made by its leaders, of their desires and intent for the organization. The purpose of a mission statement is to communicate the organisation's purpose and direction to its employees, customers, vendors, and other stakeholders. A mission statement also creates a sense of identity for its employees. Organizations normally do not change their mission statements over time, since they define their continuous, ongoing purpose and focus.<ref name=BusinessDict/> According to [[Chris Bart]], professor of strategy and governance at [[McMaster University]],<ref name=Bromides/> a commercial mission statement consists of three essential components:<ref name=SexLies/>{{Failed verification|date=April 2017}} # [[Key market]]: the target audience # Contribution: the product or service # Distinction: what makes the product unique or why the audience should buy it over another Bart estimates that in practice, only about ten percent of mission statements say something meaningful.<ref name=Bromides/> For this reason, they are widely regarded with contempt.<ref name=SexLies/> == Purpose == The sole purpose of a mission statement is to serve as a company's goal/agenda, it outlines clearly what the goal is. Some generic examples of mission statements would be, "To provide the best service possible within the banking sector for our customers." or "To provide the best experience for all of our customers." The reason why businesses make use of mission statements is to make it clear what they look to achieve as an organization, not only to themselves and their employees but to the customers and other people who are a part of the business, such as shareholders. As a company evolves, so will their mission statement. This is to make sure that the company remains on track and to ensure that the mission statement does not lose its touch and become boring or stale. It is important that a mission statement is not confused with a [[vision statement]]. As discussed earlier, the main purpose of a mission statement is to get across the ambitions of an organisation in a short and simple fashion; it is not necessary to go into detail for the mission statement which is evident in examples given. The reason why it is important that a mission statement and vision statement are not confused is because they both serve different purposes. Vision statements tend to be more related to strategic planning and lean more towards discussing where a company aims to be in the future. == Advantages == '''Provides direction:''' Mission statements are a way to direct a business into the right path. They play a part in helping the business make better decisions which can be beneficial to them. Without the mission statement providing direction, businesses may struggle when it comes to making decisions and planning for the future. This is why providing direction could be considered one of the most advantageous points of a mission statement. '''Clear purpose:''' Having a clear purpose can remove any potential ambiguities that may surround the existence of a business. People who are interested in the progression of the business, such as [[Stakeholder (corporate)|stakeholder]]s, will want to know that the business is making the right choices and progressing more towards achieving their goals, which will help to remove any doubt the stakeholders may have in the business. A mission statement can act as a motivational tool within an organisation, and it can allow employees to all work towards one common goal that benefits both the organisation and themselves. This can help with factors such as [[Job satisfaction|employee satisfaction]] and productivity. It is important that employees feel a sense of purpose. Giving them this sense of purpose will allow them to focus more on their daily tasks and help them realise the goals of the organisation and their role.<ref>{{Cite web|title = Benefits of Vision and Mission Statements |url = http://clearlogic.ca/benefits-of-vision-and-mission-statements/|website =Clearlogic Consulting Professionals |date=2013 |accessdate = 2015-11-01}}</ref><ref>{{Cite web |first=Roger |last=Vozar |date=1 June 2013 |title = How organizations benefit from having a clearly defined mission |url = http://www.sbnonline.com/article/how-organizations-benefit-from-having-a-clearly-defined-mission/|website = Smart Business Magazine|publisher=Smart Business Network Inc. |accessdate = 2015-11-02}}</ref> == Disadvantages == {{Unreferenced section|date=August 2017}} Although it is mostly beneficial for a business to craft a good mission statement, there are some situations where a mission statement can be considered pointless or not useful to a business. '''Unrealistic:''' In most cases, mission statements turn out to be unrealistic and far too optimistic. An unrealistic mission statement can also affect the performance and [[morale]] of the employees within the workplace. This is because an unrealistic mission statement would reduce the likelihood of employees being able to meet this standard which could demotivate [[employees]] in the long term. Unrealistic mission statements also serve no purpose and can be considered a waste of management's time. Another issue which could arise from an unrealistic mission statement is that poor decisions could be made in an attempt to achieve this goal which has the potential to harm the business and be seen as a waste of both time and resources. '''Waste of time and resources:''' Mission statements require planning. This takes time and effort for those who are responsible for creating the mission statement. If the mission statement is not achieved, then the process of creating the mission statement could be seen as a waste of time for all of the people involved. A lot of thought and time can be spent in designing a good mission statement, and to have all of that time wasted is not what businesses can afford. The wasted time could have been spent on much more important tasks within the organisation such as [[decision-making]] for the [[business]]. == Design == According to an independent contributor to [[Forbes]], the following questions must be answered in the mission statement:<ref>{{Cite web|first=Patrick |last=Hull |date=10 January 2013 |title = Answer 4 Questions to Get a Great Mission Statement|url = https://www.forbes.com/sites/patrickhull/2013/01/10/answer-4-questions-to-get-a-great-mission-statement/|website = Forbes|accessdate = 2015-11-02|publisher=Forbes Media, LLC }}</ref> * “What do we do?” — The mission statement should clearly outline the main purpose of the organisation, and what they do. * “How do we do it?” — It should also mention how one plans on achieving the mission statement. * “Whom do we do it for?” — The audience of the mission statement should be clearly stated within the mission statement. * “What value are we bringing?” — The benefits and values of the mission statement should be clearly outlined. When designing a mission statement, it should be very clear to the audience what the purpose of it is. It is ideal for a business to be able to communicate their mission, goals and objectives to the reader without including any unnecessary information through the mission statement.<ref>{{cite web |date=30 October 2003 |title=How to Write Your Mission Statement |url=https://www.entrepreneur.com/article/65230 |website=Entrepreneur |publisher=Entrepreneur Media, Inc. |accessdate=2015-11-02 }}</ref> [[File:FEMA - 44805 - FEMA Mission Statement posted at a Joint Field Office in TN.jpg|thumb|US [[Federal Emergency Management Agency]]'s Mission Statement Poster]] [[Richard Branson]] has commented on ways of crafting a good mission statement; he explains the importance of having a mission statement that is clear and straight to the point and does not contain unnecessary baffling. He went on to analyse a mission statement, using [[Yahoo!|Yahoo]]'s mission statement at the time (2013) as an example. In his evaluation of the mission statement, he seemed to suggest that while the statement sounded interesting, most people would not be able to understand the message it is putting across. In other words the message of the mission statement potentially meant nothing to the audience.<ref>{{Cite web|first=Richard |last=Branson |author-link=Richard Branson |date=22 July 2013 |title = Richard Branson on Crafting Your Mission Statement|url = http://www.entrepreneur.com/article/227507|website = Entrepreneur|publisher=Entrepreneur Media, Inc.|accessdate = 2015-11-02|url-status=dead |archive-date=23 October 2015 |archive-url=https://web.archive.org/web/20151023071226/https://www.entrepreneur.com/article/227507 }}</ref> {{cquote|This further backs up the idea that a good mission statement is one that is clear and answers the right questions in a simple manner, and does not over complicate things. An example of a good mission statement would be Google's, which is "to organise the world's information and make it universally accessible and useful."<ref>{{Cite web|first=Andrew |last=Thompson|date=20 August 2015 |title = Google's Vision Statement & Mission Statement|url = http://panmore.com/google-vision-statement-mission-statement|website = Panmore Institute|accessdate = 2015-11-02 |url-status=live |archive-date=13 November 2015 |archive-url=https://web.archive.org/web/20151113110528/http://panmore.com/google-vision-statement-mission-statement }}</ref>{{Failed verification|date=April 2017}}}} == See also == * [[Strategic planning]] * [[Strategy Markup Language]] * [[Vision statement]] == References == {{Reflist|refs= <ref name=Gibson> {{cite book | last1 = Gibson | first1 = C. Kendrick | last2 = Newton | first2 = David J. | last3 = Cochran | first3 = Daniel S. | chapter = An empirical investigation of the nature of hospital mission statements | editor1-last = Brown | editor1-first = Montague | title = Health Care Management: Strategy, Structure, and Process | url = https://books.google.com/books?id=-1c2Gi_cUokC&pg=PA47 | via = Google Books | series = Health Care Management Review Series | location = Gaithersburg, MD | publisher = Aspen Publishers | publication-date = 1992 | pages = 47–58 | isbn = 978-0-8342-0299-3 | oclc = 25281735 | accessdate = 2017-04-13 | quote = A frequently quoted definition of a mission statement is that it ‘is a broadly defined but enduring statement of purpose that distinguishes the organization from others of its type and identifies the scope of its operations in product (service) and market terms.’ }}</ref> <ref name=SexLies>{{cite journal |first=Christopher K. |last=Bart |title=Sex, Lies, and Mission Statements |journal=Business Horizons |date=November–December 1997 |volume=40 |issue=6 |pages=9–18 |doi=10.1016/S0007-6813(97)90062-8 |ssrn=716542 }}</ref> <ref name=Bromides>{{cite news |first=Kelley |last=Holland |url=https://www.nytimes.com/2007/09/23/jobs/23mgmt.html |title=In Mission Statements, Bizspeak and Bromides |newspaper=New York Times |date=23 September 2007 |edition=New York |department=Job Market: Under New Management |page=317 }}</ref> <ref name=Entrepreneur>{{cite web |author=<!--Entrepreneur Staff--> |url=https://www.entrepreneur.com/encyclopedia/mission-statement |title=Mission Statement |website=Small Business Encyclopedia |publisher=Entrepreneur Media, Inc. |date=2017 |accessdate = 2015-11-01 }}</ref> <ref name=BusinessDict>{{cite web|url= http://www.businessdictionary.com/definition/mission-statement.html|title= What is a mission statement? definition and meaning|website=BusinessDictionary|publisher=WebFinance Inc. |accessdate= 27 October 2015}}</ref> <ref name=Hill>{{Cite book |title= Strategic Management: An Integrated Approach |edition=8th |first1= Charles |last1= Hill |first2= Gareth |last2= Jones |location= Mason, OH |publisher= South-Western Educational Publishing |year= 2008 |page=[{{Google books|0588ekqiqQAC|page=11|plainurl=yes}} 11] |isbn= 978-0-618-89469-7 |oclc=238715134 |chapter=Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage |url={{Google books|0588ekqiqQAC|plainurl=yes}} |via=Google Books }}</ref> }} == External links == *{{cite web |url=http://www.norcblueprint.org/toolbox/mission_statement_guidelines/ |website=NORC Blueprint: A Guide to Community Action |title=Mission Statement Guidelines |date=2015 |publisher=United Hospital Fund }} [[Category:Statements]] [[Category:Business terms]] [[Category:Strategic management]]'