When I speak on the subject of “Developing a Most Meaningful Mission Statement,” I generally respond to a number of specific questions. Here are the most popular of those questions…

Question #1:
I keep hearing about a mission statement. What exactly is a mission statement anyway?

Answer:  A mission statement is a short, succinct statement declaring what business you’re in and who your customer is. The mission statement has two dimensions... first, it includes an “internal” dimension... that is, it describes the products or services you offer and the functions you perform in providing that product or service to your customer. Second, it includes an external dimension as well. That is, it is also descriptive of the market... it identifies the customer and the fundamental reason the customer elects to buy you product or service. Thus the mission statement is a succinct declaration which captures the very essence of your enterprise - your relationship with your customer.

Question # 2:
Should we write our mission statement in general terms? Or should we be very specific?

Answer:  A well-developed mission statement will be neither very general nor very specific. Rather, it will be focused. It will be broad enough to allow for the diversity which management intends (new products or services, new markets, etc.). And it will be specific enough to provide the focus necessary to the success of the business.

Question # 3:
Who, within the organization, should develop the mission statement?

Answer:  Most often, the mission statement is developed as one important element in the company’s strategic plan. As such, it’s developed by the same planning team, which develops the strategic plan.

Question # 4: 
What’s so important about developing a mission statement?

Answer:  Developing a mission statement offers significant benefits. The primary benefit is focus. Only by agreeing which markets to go after, and which products or services to offer, can an organization concentrate its limited resources. A marketing manager must know which trade shows to attend, which mailing lists to rent, which media to consider for advertising. An engineering manager must understand the needs of the target market to develop specifications for a new product. An operations manager must understand the customer’s need for reliability, for quick delivery, for customization. The needs of each of these managers call for a common understanding - a mission statement.

Question # 5:
But there currently seems to be an increasing interest in developing a mission statement. Why?

Answer:  Business managers are currently struggling with the ever-increasing complexity of our economy - with finding and developing skilled employees; with controlling costs; with managing productivity; dealing with competitive pressures and the resultant cost squeeze; with an increasingly long list of government regulations; and with understanding and applying technology.

Managers everywhere are discovering that an important part of the solution to this dilemma is focus - concentration of resources. To achieve this focus, managers must share a common understanding of the very foundation of their enterprise -they must develop their company mission.

Question # 6:
Can you give an example of a mission statement?

Answer:  Sure. Here’s an example...

“Clayton Instruments Company designs and manufactures highly reliable monitoring equipment for use in harsh or unusual environments within the process industries.”

Note that this mission statement has both an internal and an external dimension. Internally, it describes the products which the company offers: “highly reliable monitoring equipment.” And it also lists the functions the company performs: “design and manufacturing.” The mission statement also includes the necessary external dimension. It identifies the customer: “the process industries.” And it sites the reason why customers would prefer to buy products and services from this particular company. Specifically, the company’s products are “for use in harsh or unusual environments.”

Question # 7:
The above example of a mission statement is just a single sentence. Aren’t some mission statements longer? Which is better, shorter, or longer?

Answer:  A shorter mission statement, such as the example above, describes the essence of the enterprise. It describes the internal dimensions of the business: the products and services offered and the functions performed. And it identifies the market... the customer, and the reason the customer chooses this particular company’s products or services. In effect, the shorter mission statement builds a bridge between the company and its customer.

A longer mission statement builds this same bridge to the customer. But it goes on to describe a number of other relationships as well. It may describe the company’s earning a profit... its relationship with its owners. Or it may describe its being a good employer... its relationship with its employees. Or it may describe its non-pollution of the air and the water... its relationship with the community.

Certainly, each of these other relationships is important, but only the relationship with the customer is at the very essence of the enterprise. Why? Because if the organization doesn’t manage that one relationship well - if the company doesn’t provide products and services which meet customer needs - then the company can maintain none of its other relationships. For this reason, I favor developing a shorter mission statement... one which is descriptive of the relationship with the customer only.

Question # 8:
But if the other relationships are important, shouldn’t we commit them to writing also?

Answer:  Yes, you should commit them to writing. But you really shouldn’t describe these relationships in the mission statement... for that would dilute your description of the relationship with your customer. In your strategic plan, you can include a section called, “Company Philosophy.” In that section, you can write about your company’s relationships with (its philosophy toward) its owners, its employees, its community, etc.

Question # 9:  
Should the mission statement describe our business as it is today, or should it describe our business as we would like it to be in the future?

Answer:  The development of the mission statement is the step which moves the strategic planning process from the present to the future. In effect, the mission statement must “work” not only today but for the intended life of the strategic plan of which the mission statement is a part. If you’re developing a five year strategic plan, for example, you should develop a mission statement which will “work” for the next five years.

Question # 10: 
But, realistically, shouldn’t we expect some change, from year to year, in our mission statement?

Answer:  Yes, of course, you should. Even though you intend that your mission statement “work” for a number of years, circumstances change. So you should be prepared for some change in your mission statement. But that change should be a fine tuning. An evolutionary change - rather than a revolutionary change - over time. Remember, your mission statement is your description of “what business we’re in.” Of your relationship with your customer. As such, it represents the very foundation of your enterprise. Certainly, you wouldn’t want the foundation of your enterprise changing significantly from year to year.
 

This article adapted from Bill Birnbaum's book, Strategic Thinking: A Four Piece Puzzle