Mission Statement

In this article, Anant JAIN (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) talks about Mission Statement.

Introduction

A mission statement explains an organization’s purpose of existence. A mission statement defines the organization’s values, ethics, culture, goals, and agenda. It describes the rationale for its existence, specifies its overall goals, and identifies the operational goals (including the product and/or service to deliver, its key clients or market, and the geographical region of operations) in basic and brief terms. A mission statement would be unique and distinct for every organization because every organization is different in terms of history, business, operations, vision, etc.

For example, the mission statement for United Airlines is as follows: “Connecting people. Uniting the world.”

In addition to this, a mission statement also entails how each and every component is applicable to the distinct and various stakeholders of an organization including its employees, customers, suppliers, investors, and society at large. Therefore, it can be used by various stakeholders to assess if an organization’s values and goals align with their own or not.

For example, Nike’s mission statement includes various stakeholder presented ahead: “To expand human potential by creating groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.”

A mission statement is an action-oriented declaration of an organization’s purpose to its target audience. A broad explanation of the organization, its role, and its goals is frequently included. As an organization expands, its aims and goals may be met, and they may alter as a result. When a result, as prior goals are fulfilled, mission statements should be amended as appropriate to reflect the organization’s new culture.

A commercial mission statement, according to Chris Bart, professor of strategy and governance at McMaster University, consists of three fundamental components:

Key market: the target market for the organization
Contribution: the product or service that has been provided
Distinction: what distinguishes the product or why should the audience choose it over another

However, Bart (2006) estimates that only around 10 percent of mission statements are useful in practice. As a result, they are commonly viewed with contempt.

Examples Of Mission Statements

Please find below a list of mission statement for some of the most famous companies which I personally found to be concrete & impactful:

IKEA: To create a better everyday life for the many people.
Nordstrom: To give customers the most compelling shopping experience possible.
JetBlue: To inspire humanity – both in the air and on the ground.
Workday: To put people at the center of enterprise software.
Tesla: To accelerate the world’s transition to sustainable energy.
TED: Spread ideas.
Chipotle: To provide “food with integrity.”
Walmart: We save people money so they can live better.
Starbucks: To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.
JP Morgan: To be the best financial services company in the world.
ESSEC Business School: The mission of ESSEC Business School, a world school with French roots, is to infuse leadership with meaning in order to prepare leaders ready to address contemporary economic, environmental and social challenges. In order to do so, it produces innovative and relevant knowledge to equip the next generation of leaders with the skills, know-how and savoir-être that will make them truly responsible, inclusive and respectful of the environment. Convinced that knowledge provides a path to freedom – Per scientiam ad libertatem – ESSEC inculcates in its students critical thinking and creativity skills that prepare them to anticipate and address the challenges of an increasingly uncertain world. ESSEC supports students in making their actions both meaningful and impactful by relying on both technology and people. It also seeks to enlighten the actions of businesses and organizations in a world transformed by the new industrial revolution, the environmental crisis, a new world balance and other major societal changes.

Purpose Of A Mission Statement

Although the concept of an organization’s purpose may extend beyond that of a mission statement, the primary objective of a commercial mission statement is to define an organization’s core aim/agenda, and it outlines the same in simple words. Businesses use mission statements to communicate not just to themselves and their employees, but also to consumers and other stakeholders. An organization’s mission statement will change as it grows. This is to guarantee that the business stays on course and that the mission statement does not lose its luster and become uninteresting or stale.

Because all strategies are formed and executed with a strong objective as the foundation, being able to construct an impactful statement is the first step to commercial success. The mission statement directs the management team in developing strategies that enable the organization to reinforce its identity and achieve its objectives. It is necessary for:

Employee motivation
Customer inspiration
Strategic planning
Establishment of values
Understanding why an organization operates

Advantages Of A Mission Statement

The following are some of the benefits of a mission statement:

Provides guidance and direction

Mission statement contributes to the organization’s ability to make better decisions, which can benefit them. Organizations may struggle to make decisions and prepare for the future if they don’t have a mission statement to guide them. This is why one of the most useful aspects of a goal statement is offering guidance.

Clear And Well-Defined Goal/Purpose

Having a defined mission might help to eliminate any potential uncertainties about an organization’s existence. People who are interested in the organization’s success, such as stakeholders, will want to know that the organization is making the correct decisions and moving closer to its objectives, which will assist to dispel any doubts the stakeholders may have.

A mission statement may be used as a motivator inside an organization, allowing employees to work together toward a common objective that benefits both the organization and the employees. Employee’s happiness and productivity may both benefit from this. It’s critical for employees to have a feeling of purpose. Giving them a feeling of purpose will allow them to concentrate more on their everyday activities while also assisting them in realizing the organizations and their own goals.

Disadvantages And Flaws Of Mission Statements

Even though a mission statement is generally useful to an organization, it does have a few drawbacks, which are listed below:

Unrealistic

Mission statements are frequently found to be unrealistic and too optimistic. A mission statement that is unrealistic can have a negative impact on staff performance and morale. Because an unachievable purpose statement reduces the possibility that employees will be able to reach this objective, it may demotivate employees in the long run. Unrealistic mission statements likewise serve no value and are a waste of effort for management. Another issue that might result from an unachievable mission statement is that in order to attain this objective, incorrect judgments may be made, which could hurt the organization.

Waste Of Resources And Time

Mission statements need planning. For individuals in charge of writing the mission statement, this requires time and effort. It may be result in ineffective use of tuime and resources. If the mission statement is not accomplished, the process of developing it might be viewed as a waste of time by all parties concerned. A strong mission statement may take a lot of effort and work to create, and organizations cannot afford to waste any of that time. The time may have been better spent on other vital responsibilities inside the organization, such as decision-making.

Mission Statement VS Vision Statement

An organization’s mission statement explains what it aims to accomplish, who it wants to help, and why it wants to support them. A vision statement, on the other hand, defines where the organization wants a community or the world to be as a result of its services. As a result, a mission statement serves as a road map for the organization’s goal.

A mission statement states what a brand or organization intends to accomplish. This informs the public about the product and service it offers, as well as who it serves and why it does so. A brand’s vision statement is a declaration that looks to the future and expresses what it aims to accomplish through its mission statement. This is more conceptual, since it shows what the brand may become in the eyes of the consumer, as well as the value it will provide in the long run.

To sum it up, the following are the fundamental distinctions between a mission and a vision statement:

Mission statements define an organization’s present mission. A mission statement frequently includes information about the organization’s role, target audience, and significant offers.
Vision statements are a glimpse into an organization’s future or a declaration of the organization’s overarching vision. A vision statement can have the same aspects as a mission statement; however, it will be expressed in the future tense.

Useful resources

Christpher K. Bart (2006) Sex, Lies and Mission Statements

About The Author

The article was written in August 2024 by Anant JAIN (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022).