What Is a Mission Statement?

A company uses a mission statement to e💛xplain its pur🅘pose for being in simple and concise terms. The statement is generally short, either a single sentence or a short paragraph.

How a Mission Statement Works

Mission statements serve a dual purpose. They help employees remai꧑n focused on the tasks at hand and they encourage them to find innovative ways of moving toward increasing their productivity with the eye to achieving company goals.

A company’s mission statement defines its culture, values, ethics, fundamental goals, and agenda. It defines how each of these applies to the company's stakeholders: its employees, distributors, suppliers, shareholders, and the communi🌱ty at large. These entities can use the statement to align their goals with those of the company.

The statement reveals what the company does, how it does it, and why it does it. Prospective investors may also refer to the mission statement to see if the values of the company align with their own. An 澳洲幸运5官方开奖结果体彩网:ethical investor who's against tobacco products would probably not invest in a company wh✤ose mꦅission is to be the largest global manufacturer of cigarettes.

It's not uncommon for large companies to spend many years and millions of dollars to develop and refine their mission statements. They eventually become household phrases in some cases.

Mission statements aren't just for small or large companies. Many successful individuals, professionals, and investors have taken the time to craft personal mission statements. These often incorporate the financial, professional, spiritual, and relational aspects of life. This helps an individual maintain a healthy work/life balance that increases their personal achievement in all these areas.

Drafting a Mission Statement

It may be difficult to narrow down the focus of your company 🐎in a single statement but some tips can help you write a good mission statement.

• Outline what your company does. This might be a good you produce or a service you provide to your 澳洲幸运5官方开奖结果体彩网:customers. It's whatever makes your business run.
• Describe how your company does what it does. Don't be technical. Think of what values go into the core of your business. Maybe you value quality, customer service, or being sustainable. You may foster creativity and innovation in your business. These are key points to outline in your mission statement.
• Include why you do what you do in your mission statement. This is key. It helps you stand out as a business, highlighting what sets you apart from others in your industry. But remember to keep the mission statement short and to the point.

Look it over, edit it, and then have someone else give it a once-over after you've drafted it. Find a way to incorporate it wherever you can after you've approved it. Be mindful to periodically review your mission statement. It's never ideal to constantly pivot your image and change your statement but your company may outgrow it or shift direction and this would result in the need for a new statement.

Displaying a Mission Statement

It's up to the company to make it publicly known after a mission statement is crafted. It only holds value if it's shared with existing and potential customers, vendors, donors, and employees.

A company's mission statement is often pretty short so it's easy to incorporate it into marketing material. It should always be found somewhere on a company's website. It can also be used in marketing documents. A company might solicit employees to incorporate adding its mission statement as part of a company-wide standard e-mail signature block.

A mission statement is also a perfect "elevator pitch" sentence that key members of your company should know. It's easy to memorize because it's so brief. It's a perfect introduction for someone who's never heard of your company or wants to know more. A mission statement is an easy way to captivate a stranger's interest in your company should they ask what your company does, whether it's at a 澳洲幸运5官方开奖结果体彩网:networking event, a social gathering, or a bu🦩s ride to work.

Advantages and Disa𒁃dvantages of Mission Statemen🐲ts

A mission statement isn't an infallible tool. It comes with both pros and cons.

Advantages

Companies can benefit from having a mission statement. It outlines a company's goals and position in the industry for its customers, competitors, and other stakeholders and it helps the organization focus and stay on track to make the right decisions about its future.

The mission statement helps clarify a company's purpose. A company's customers and investors can rest assured that the company is fully committed to achieving its goals and maintaining its values. It's also useful to guide and motivate employees, keeping them in line with the company's values.

A mission statement adds validity to an organization🃏. It demonstrates that a company has considered the big picture and the major goals it wants to accomplish. It demonstrates thoughtful leadership,𓆏 reputability, and inspiration to potential investors, employees, or donors.

Disadvantages

Mission statements can sometimes be very lofty and far too unrealistic and this can distract employees from the company's goals. Management may become so distracted by high-level targets that shorter-term, necessary steps to get there become neglected.

It can take a lot of time and money to develop a mission statement even though it's short. The resources spent on a bad mission statement could be better spent elsewhere, creating an 澳洲幸运5官方开奖结果体彩网:opportunity loss. The difficulty in crafting such a concise statement is that many parties often have ideas and there's not room fo꧃r many of them. Companies may struggle with "wordsmithing" or simply rearranging words instead of trying to generate value.

Some people on the outside or even the inside may disagree with the mission. A mission statement doesn't give much opportunity for a rebuttal to clarify or further explain what a company is all about.

Mission Statement Examples

Mission statements vary considerably from company to company. The following examples are those of some of the world's largest companies:

• Nike (NKE): "To bring inspiration and innovation to every athlete* in the world."
• Walmart (WMT): "We save people money so they can live better."
• Starbucks (SBUX): "To inspire and nurture the human spirit-one person, one cup and one neighborhood at a time."
• Tesla (TSLA): "To accelerate the world's transition to sustainable energy."
• JP Morgan (JPM): "We aim to be the most respected financial services firm in the world."

Mission Statements vs. Other Statements

A mission statement is often confused or grouped with other types of organizational statements but they vary from a mission statement.

Vision Statement

A mission statement remains unchanged for the most part and represents who the company is or aspires to be for the entirety of its existence. The vision sta✱tement can change. It outlines what the company must do to remain what it has presented itself to be. A company’s mission is its idenℱtity and its vision is its journey to accomplishing its mission.

Value Statement

A company's 澳洲幸运5官方开奖结果体彩网:value statement is also centered around its core principles and philosophy but it's more direct in guiding how decisions will be made and what will impact the daily culture of the organization. A value statement often includes actionable directions such as "taking own𒁏ership," "acting ethically," "doing what is right" or "being transparent." A mission statement describes the highest level of purpose. A vision statement begins to describe how that purpose will be ac♉hieved.

Company Goals

A company's goals or 澳洲幸运5官方开奖结果体彩网:business plan may be publicly disclosed or kept private and internal. Goals are generally even more specific, potentially referring to specific business lines, growth percentages, geographical regions, or new initiatives. A mission statement usually doesn't ment𝓡ion a specific aspect of the business but goals are often mea🔴surable relating to departments or products so a company can track progress. A company's mission statement should drive the goals that are set.

Brand

A brand is a suite of elements that encompasses a company's identity. It includes its marketing materia🅘l✨s, engagement in community events, reviews from current and former employees, and its logo presence. A company's brand is also shaped by its mission statement. It's a small component but a mission statement helps customers, employees, and investors form an opinion of a company.

Slogan

A slogan is a very brief, often memorable phrase that people primarily outside of your company can remember. Uttering a great slogan such as "Just Do It" can invoke memories, commercials, logos, brand ambassadors, and emotions through a 澳洲幸运5官方开奖结果体彩网:successful ad campaign.

A mission statement is brief but it's longer than and somewhat more detailed than a slogan. It isn't necessarily meant to be catchy. It's intended to be informative and useful for guiding high-level decisions. A slogan is a very pointed marketing phrase that should be memorable even if it's less informative.

The Bottom Line

A mission statement is a simple and brief description that encompasses the purpose of a company. It defines its culture, goals, and values. It helps customers, employees, and investors get a clear vision of the company's top priorities. A good mission statement can also motivate employees and help them stay focused as well as reassure investors of the company's future.