What Is a Mission Statement?
A mission statement succinctly defines a company’s or organization’s core purpose. Generally brief, either a single sentence or a short paragraph, it encapsulates the company’s values, culture, and ethics.
Key Takeaways
- A mission statement clearly outlines a company’s essential purpose.
- Typically short, it encapsulates the core values, culture, and ethics of the business.
- It acts as a motivation for employees and reassures investors about the company’s direction.
- To draft a compelling mission statement, consider the key impacts on customers, investors, community, and the unique approach of your company.
- A mission statement differentiates itself from other marketing elements such as vision statements and slogans, serving distinct strategic purposes.
How a Mission Statement Works
Mission statements double as guides for employees to stay focused and innovative in pursuit of company goals, detailing culture, values, ethics, and overall objectives. It sets a framework for aligning suppliers, distributors, shareholders, and the community at large with the company’s strategy. For potential investors, a well-formulated mission statement reveals alignment between their values and those of the company.
Personal mission statements are also beneficial, incorporating various life aspects that help individuals maintain a healthy work-life balance and focus on holistic success.
Drafting a Mission Statement
Crafting a mission statement, though challenging, is essential for clear business direction:
- Identify what your company does: Clearly state the products or services provided.
- Explain how you do it: Highlight the core values serious to your business such as quality, sustainability, or innovation.
- State why you do it: Underline your unique purpose. This portion highlights what differentiates your organization from others in your industry.
Review, edit, and visibly incorporate it into your marketing efforts, periodically revisiting to ensure continuous alignment with business growth.
Displaying a Mission Statement
Visibility is paramount. It must be present on your website, integrated into marketing materials, and consistently featured in standard communication formats like email signatures. A short, impactful mission statement also serves as an effective elevator pitch.
Advantages and Disadvantages of Mission Statements
Advantages:
- Clarity: Provides a clear business direction for all stakeholders.
- Focus: Helps maintain alignment with long-term goals underpinning daily decisions.
- Credibility: Confers a sense of thorough strategic thinking and commitment.
Disadvantages:
- Lofty and Unrealistic: Can lead to distraction if not pragmatic.
- Resource Investment: Time, effort, and financial costs in crafting may outweigh benefits.
- Subjectivity: May clash with individual perspectives within or outside the organization.
Mission Statement Examples
Browser through iconic mission statements:
- Nike: “To bring inspiration and innovation to every athlete* in the world.”
- Walmart: “We save people money so they can live better.”
- Starbucks: “With every cup, with every conversation, with every community – We nurture the limitless possibilities of human connection.”
- Tesla: “To accelerate the world’s transition to sustainable energy.”
- JP Morgan: “We aim to be the most respected financial services firm in the world.”
Mission Statements vs. Other Statements
Mission Statement vs. Vision Statement
While mission statements capture the essence of a company’s purpose, vision statements outline future aspirations to maintain that purpose, illustrating the company’s strategic trajectory.
Mission Statement vs. Value Statement
Value statements are actionable guides reflecting a core philosophy, guiding daily organizational decisions and actions unlike the high-level purpose described by mission statements.
Mission Statement vs. Company Goals
Unlike mission statements, company goals are specific, often measurable targets related to business lines or initiatives, driven by the company’s overarching mission.
Mission Statement vs. Brand
The brand’s multifaceted identity encompasses the mission statement, marketing materials, community engagement, and visual elements, helping form a holistic public perception.
Mission Statement vs. Slogan
Slogans are catchy and memorable marketing phrases resonating externally, while mission statements provide substantial, strategic guidance focused internally and externally.
Conclusion
A mission statement succinctly describes a company’s true purpose and essence. It vitalizes the company’s culture, motivates employees, and reassures investors, encapsulating long-term goals. Careful crafting ensures it aligns thinking, decisions, and actions towards a unified direction, forming the backbone of a robust business strategy.
Related Terms: Vision Statement, Value Statement, Brand, Company Goals, Slogan.
References
- Nike. “What is Nike’s Mission?”
- Walmart. “History”.
- Starbucks. “Message from Starbucks ceo: A Revitalized Mission for Our Limitless Future”.
- Tesla. “About Tesla”.
- JP Morgan. “About Us”.
- Microsoft. “About Us.”
