Sagacious Think

As much as we want to be everything to everyone; life and business just do not work that way.  Companies that succeed know they need to hone their focus on their vision.  They translate this vision into a powerful mission statement.  They realize that  mission statements are more than pithy phrases or something to fill in because everyone else has one.  Have a clear vision and a succinct mission statement helps the entrepreneur and executive articulate what the business is, and what it stands for which is critical when communicating to potential customers, key stakeholders, new employees.

They help a company in three ways by:

Providing direction - Having a mission statement helps entrepreneurs focus on the path of the company instead of getting side tracked in the weeds.  They know the direction they want to take their company and can help everyone stay on track.  This is just as true with an established company as with a start up.  How many companies working on their five year plan ascertain whether their action plans align with their mission?

Determining decisions – Having the vision should make the decision process easier as it alongs everyone from the executives to the employees.  The goal has been identified, all decisions should be made with an eye towards achieving that goal.

Inspiring people - A strong mission statement excites and unites people.  It is a call to action.  People want to work for a company that sets its sights high and clearly articulates what it stands for.

Communicating about the company – Reading the mission statement provides insight in to the intent of the founders as to what the company is about (aside from making a profit and growing).  People want to know what you company does and what it stands for.

Some companies have very simple mission statements, such as Google’s “Do no evil” and others are more elaborate.  There’s a bit of a balance – too little does not provide necessary information and make it actionable, and too much can force companies in a corner “Be the best typewriter manufacturer in the world”.  Some maneuverability is key.  Developing a mission statement really forces a company to focus on what it is and what it wants to be.

Some questions to ask when developing a mission statement:

• What do we stand for?  What are the basic value and beliefs that we want for this organization?
• Who are the company’s target customers?
• What are our basic products and services?  What need are we trying to satisfy?
• What differentiates us from the guys down the street?
• What are our customers goals and how can we help them achieve those goals?
• What is our competitive advantage and what is its source?
• What are our target markets?
• Who are our company stakeholders, and what impact do they have on our company?  What are their goals?

Sometimes more than one statement or a multipart statement is required:

What is the mission statement as it relates to the product?

What is the mission statement as it relates to company performance?

What is the mission statement as it relates to societal issues?

Need some ideas?  Here’s a list of mission statements from some of the top technology companies.

This video by the guys that brought you the great book, Made to Stick – does a wonderful job of explaining the good, the bad and the ugly in developing mission statements.  Its about 3 minutes, and definitely worth your time.