Corporate Mission Statement

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Corporate Mission Statement: Key Points and Explanation

A mission statement is a critical tool for any well-run business, serving as the “why” of business strategy. It defines the company's goals in several important ways:

  • Defines What the Company Does for Its Customers:
    • Explains the value the company provides to its customers.
    • Highlights how the company differentiates itself from competitors.
    • Focuses on the specific benefits and unique offerings the company delivers.
  • Defines What the Company Does for Its Employees:
    • Outlines the company’s commitment to creating a positive work environment.
    • Emphasizes values like fairness, respect, diversity, and opportunities for growth.
    • Aims to attract and retain talent by promoting a culture of support and empowerment.
  • Defines What the Company Does for Its Owners:
    • States the company’s goals for enhancing the financial position of its owners.
    • Reflects the owners' priorities, whether it’s growth, profit, or a positive work environment.
    • Balances financial goals with other aspects like peace of mind and workplace satisfaction.
  • Defines What the Company Does for Its Community and the World (optional):
    • Includes broader objectives such as social responsibility and environmental sustainability.
    • Positions the company as a socially-conscious entity.
    • Communicates the company’s commitment to making a positive impact beyond profit.

Steps to Craft a Mission Statement

1. Start with a Market-Defining Story:

  • Imagine a real customer making a purchase decision.
  • Understand their needs, how they find you, and what benefits they gain.
  • This story guides the creation of a concrete and relatable mission statement.

2. Define What Your Business Does for Its Customers:

  • Focus on the good your business provides.
  • Highlight specific ways your business stands out in meeting customer needs.
  • Include any broader benefits to society if relevant and true.

3. Define What Your Business Does for Its Employees:

  • Outline the company’s values and commitments to its workforce.
  • Specify how the company supports employee growth and a positive work environment.
  • Avoid generic claims; make it specific and actionable.

4. Add What the Business Does for Its Owners:

  • Reflect on the owners' goals and how the business meets them.
  • This may include financial stability, growth, or a fulfilling workplace.
  • Though not common, this can add depth to the mission statement.

5. Discuss, Digest, Cut, Polish, Review, Revise:

  • Edit for clarity and brevity.
  • Consider separate versions for internal and external audiences if needed.
  • Use clear, specific language and avoid buzzwords.
  • Gather feedback from others and revise as necessary.
  • Regularly review and update the mission statement to ensure it remains relevant.

Examples of Effective Mission Statements

American Express:

  • “We have a mission to be the world’s most respected service brand. To do this, we have established a culture that supports our team members, so they can provide exceptional service to our customers.”

Warby Parker:

  • “Warby Parker was founded with a rebellious spirit and a lofty objective: to offer designer eyewear at a revolutionary price, while leading the way for socially-conscious business.”

Conclusion

A well-crafted mission statement is a guiding star for a company, defining its purpose and direction. It should be clear, specific, and reflective of the company’s unique qualities. Regularly reviewing and updating the mission statement ensures it continues to serve as a valuable tool for strategic decision-making and organizational alignment.