Posted in Business Management, Entrepreneurship, Human Resource, Organisational behaviour, Principles of Management
on Mar 22nd, 2014 | 0 comments
Why mission statements are important? Before going into that, let me first briefly tell you what a mission statement is. Firms in corporate business arena perform different business activities to earn profit as well as to retain their market share and stand. How does the general public know what they are up to? Is it really necessary for the firms to expose the nature of their activities to outsiders! Well, by explicitly defining the mission of your company, you stand a chance to gain identity, character and image and there is nothing to lose. A mission statement defines the basic reason for the existence of the organization and it clearly reflects your corporate philosophy.
The management’s actions also might reflect their mission, in which case the mission statement is not explicitly defined and sometimes it could be deduced from the press statements released by the CEO.Whether defined or not defined, each and every organization has a definite mission that is clearly communicated to all the employees for action. When defined, it also serves as a means to highlight the firm’s social responsibility.
Following are the distinct characteristics that a mission statement should possess:
- It should be precise: The mission should neither be narrow as to restrict the activities of an organization nor too broad to make the situation pointless.
- It should be crystal clear: It should be clear enough to lead to action and not high-sounding and adhere to cheap publicity.
- It should be feasible: The actions mentioned must be well within the reach of the company and should not be impossible. It should be realistic and achievable. As, credibility is involved, firms must exercise caution when they release their mission statements. Feasibility mainly depends on the resources available that facilitate the firm to work towards the mission.
- It should be motivating: Motivating both for the employees and the society. Employees must identify themselves with the organization and feel proud that it is worth working for the firm and customers should take pride in associating themselves with that firm.
- It should be distinctive: It should project your distinctive competence to sustain competitive advantage. Say, if you own a garment shop, you should talk about the range of clothes that you can offer for different sections of the society and you can name yours a “Family Shoppe”, so that people will understand the nature of your business.
- It should indicate major components of strategy: If the aim of your company is stability, growth, diversification or concentration, all those can be included in your mission statement.
- It should also indicate how objectives are to be accomplished: The time period, production target, product specialization, product or process differentiation, everything can find their place in mission statements for the benefit of the society and self.
Strategic management involves intelligent and timely decision making and mission statements are nothing but components of strategic planning that help the managers to lead the firm with some distinct “ideology” in the form of mission statements.
Some Interesting Mission Statements:
- Google’s mission is to organize the world’s information and make it universally accessible and useful.
- Nike-“Crush Reebok.”
- Wal-Mart-“To give ordinary folk the chance to buy the same thing as rich people.”
- Walt Disney-“To make people happy.”