Definition
A mission statement is a formal summary that articulates the core purpose, vision, and values of an organization. It succinctly conveys the fundamental aims and guiding principles that drive the organization. Typically, mission statements are developed during the strategic planning process and are widely publicized. They can be found on the organization’s website, printed on plaques, wallet cards, and other promotional materials.
Examples
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Google:
- “To organize the world’s information and make it universally accessible and useful.”
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Tesla:
- “To accelerate the world’s transition to sustainable energy.”
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Nike:
- “To bring inspiration and innovation to every athlete in the world.”
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Patagonia:
- “We’re in business to save our home planet.”
Frequently Asked Questions
What is the purpose of a mission statement?
A mission statement communicates the organization’s core objectives and values. It helps to align stakeholders, provides direction, and serves as a foundation for decision-making and strategic planning.
How does a mission statement differ from a vision statement?
While a mission statement focuses on the present state and fundamental purpose of the organization, a vision statement outlines the aspirational goals and future direction of the organization.
Who typically creates the mission statement?
The mission statement is typically created by senior leadership, often with input from employees, stakeholders, and sometimes a broader community during the strategic planning process.
Can a mission statement change over time?
Yes, a mission statement can and should evolve as the organization grows and adapts to new challenges and opportunities. Regularly revisiting and updating the mission statement helps ensure its relevance.
How is a mission statement used in a company’s daily operations?
A mission statement is used to guide decision-making, unify employees towards common goals, shape corporate culture, and communicate the company’s purpose both internally and externally.
- Vision Statement: A vision statement presents a future-oriented declaration of the organization’s purpose and aspirations.
- Strategic Planning: A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.
- Corporate Values: Core principles that guide an organization’s internal conduct and its relationship with the external world.
- Credo: A statement of the beliefs or aims that guide an organization’s activities.
Online References
- Harvard Business Review: Crafting a Mission Statement
- Investopedia: Mission Statement
- Wikipedia: Mission Statement
Suggested Books for Further Studies
- “Start with Why: How Great Leaders Inspire Everyone to Take Action” by Simon Sinek
- “Built to Last: Successful Habits of Visionary Companies” by Jim Collins and Jerry I. Porras
- “The Advantage: Why Organizational Health Trumps Everything Else in Business” by Patrick Lencioni
- “Mission in a Bottle: The Honest Guide to Doing Business Differently–and Succeeding” by Seth Goldman and Barry Nalebuff
Fundamentals of Mission Statements: Strategic Planning Basics Quiz
### What is the primary function of a mission statement?
- [x] To communicate the organization’s core objectives and values.
- [ ] To detail the daily operations of the organization.
- [ ] To outline specific financial goals and projections.
- [ ] To respond to quarterly performance metrics.
> **Explanation:** The primary function of a mission statement is to communicate the organization’s core objectives and values, providing direction and alignment for all stakeholders.
### How often should an organization update its mission statement?
- [ ] Never, once written it should remain the same.
- [ ] Every month.
- [ ] Every 25-30 years.
- [x] Periodically as the organization evolves.
> **Explanation:** A mission statement should be revisited and updated periodically as the organization evolves to ensure it remains relevant and aligned with the company’s current goals and context.
### Which of the following is NOT a characteristic of a well-crafted mission statement?
- [x] It contains detailed financial metrics.
- [ ] It is clear and concise.
- [ ] It is aligned with the company's values.
- [ ] It provides direction for decision-making.
> **Explanation:** A well-crafted mission statement is clear, concise, aligned with the company's values, and provides direction for decision-making. It typically does not include detailed financial metrics.
### Who is typically involved in the creation of a mission statement?
- [ ] Junior employees only.
- [ ] External customers.
- [x] Senior leadership and sometimes broad input from various stakeholders.
- [ ] Only the marketing department.
> **Explanation:** The creation of a mission statement is usually led by senior leadership, often with broad input from employees, stakeholders, and sometimes the community during the strategic planning process.
### What is the primary difference between a mission statement and a vision statement?
- [ ] A mission statement is longer than a vision statement.
- [ ] A mission statement includes financial goals, while a vision statement does not.
- [x] A mission statement focuses on present objectives, while a vision statement outlines future aspirations.
- [ ] A vision statement is for external use, while a mission statement is internal-only.
> **Explanation:** A mission statement focuses on the present state and fundamental purpose of the organization, while a vision statement outlines aspirational goals and future direction.
### Which of the following best describes the use of a mission statement in daily operations?
- [ ] It is only referenced during annual meetings.
- [ ] It is used to decorate offices.
- [x] It guides decision-making and unifies employees towards common goals.
- [ ] It is used solely for marketing purposes.
> **Explanation:** A mission statement is used in daily operations to guide decision-making, unify employees towards common goals, and shape corporate culture, not just for decoration or marketing.
### Can a mission statement include the company’s desired impact on society?
- [x] Yes, it can include the company’s broader impact and commitment to societal goals.
- [ ] No, it should only focus on internal objectives.
- [ ] It should focus exclusively on financial goals.
- [ ] Only if the company is a non-profit organization.
> **Explanation:** A mission statement can certainly include the company’s broader impact and commitment to societal goals, reflecting its values and broader purpose.
### What might necessitate a revision of a company’s mission statement?
- [x] Major organizational changes, such as a merger or shift in market strategy.
- [ ] Quarterly financial reviews.
- [ ] Day-to-day operational tasks.
- [ ] A change in the company’s office location.
> **Explanation:** Major organizational changes, such as a merger, acquisition, or significant shift in market strategy might necessitate a revision of the company’s mission statement to ensure it continues to reflect the company's core purpose and direction.
### When presenting a mission statement to stakeholders, it is important to:
- [ ] Keep it confidential.
- [ ] Include as many industry-specific terms as possible.
- [x] Ensure clarity and alignment with stakeholder values.
- [ ] Use complex language to sound more sophisticated.
> **Explanation:** When presenting a mission statement to stakeholders, it is important to ensure that it is clear and aligned with their values, fostering understanding and buy-in.
### How should an organization disseminate its mission statement?
- [x] Through its website, promotional materials, and internal communications.
- [ ] Only during the employee onboarding process.
- [ ] Exclusively in annual reports.
- [ ] Via confidential internal documents.
> **Explanation:** An organization should disseminate its mission statement widely, including on its website, through promotional materials, and within internal communications to ensure broad understanding and alignment.
Thank you for exploring the concept of mission statements and enhancing your strategic planning knowledge through our comprehensive explanations and challenging quiz questions. Keep striving to understand and articulate the guiding principles that drive organizational success!
