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How to Write a Powerful Mission Statement for Your Business

How to Write a Powerful Mission Statement for Your Business

Have you ever felt lost in the minutia of your job?

As a business owner, I can relate to getting bogged down in the day to day operations of my business. Things like inventory, payroll, scheduling, purchasing and employee management take up the bulk of my day.

While these things are important and need to get done, focusing too much on the details can make you lose sight of the big picture. This is why having a good mission statement comes in handy.

What is a Mission Statement?

Put simply, a mission statement is an internal document that provides a clear purpose for the organization. It provides a common reference point for everyone in the organization to start from.

In other words, after reading your company’s mission statement, managers and employees should be able to answer the question “What are company’s main objectives?” For example, Southwest Airlines mission statement reads:[1]

“Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth.”

In this single statement, Southwest conveys the company’s goals of providing the highest level of customer service as well as providing a good working environment for their employees.

Mission Statement VS. Vision Statement

While the mission and vision statements are related, there are subtle but distinct differences the you should be aware of.

First of all, a mission statement is designed primarily as an internal company document. It provides clarity and direction for managers and employees.

While there’s nothing wrong with sharing your company’s mission statement with the outside world, its intended audience is within the company.

While a mission statement provides a general framework for the organization, the vision statement is usually a more inspirational statement designed to motivate employees and inspire customers. Going back to Southwest Airlines, their vision statement reads:[2]

“To become the world’s most loved, most flown, and most profitable airline.”

This statement inspires good feeling from the customer while motivating the employees to achieve that vision.

What Does a Good Mission Statement Look Like?

When coming up with a mission statement, it’s important to take your time and do it right. Too often, people (especially entrepreneurs) just write down the first thing that comes to mind and they end up with worthless or (worse yet) a generic mission statement that is utterly useless.

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Remember, a mission statement should provide a common framework for everyone in your organization.

When writing a mission statement, you should always try to incorporate the following;

  • What we do?
  • How we do it?
  • Whom do we do it for?
  • What value are we bringing?

Now, you can see how tempting it is to just come up with something generic that ticks off those four boxes. Something like “We provide the best widgets available online for the consumer.”

After all, that did check off all the boxes:

What we do? Provide widgets.

How we do it? Online.

Who do we do it for? The consumer.

What value we bring? The best widgets.

The problem with this mission statement is that it could apply to any number of companies producing the same widget. There is nothing to distinguish your company or its widgets from any of your competitors widgets.

Compare that mission statement to this one:

“We provide the highest quality widgets directly to the consumer at an affordable price backed up with a 100% satisfaction guarantee. If our clients aren’t 100% satisfied, we’ll make it right.”

What’s the difference?

Both mission statements answer all the same questions of what, how, whom and value. But in the second statement, they are differentiating their company from all other competitors by answering the question “what makes us unique”.

Another way to read that is, “Why you should buy from us.” In this example, it’s because our widgets are of the highest quality and we stand behind them 100%.

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You might have noticed the statement didn’t say that we sell widgets at the lowest possible price. That’s because we are emphasizing quality and satisfaction over price.

A different company’s mission statement may emphasize selling widgets at the lowest possible price with little to no mention of a guarantee.

Hallmarks of a Good Mission Statement

1. Keep It Brief

Your mission statement should be no longer than three sentences. This is not your company’s magnum opus.

You should be able to distill the what, how, who and why questions into a succinct message.

2. Have a Purpose

A company’s missions statement should include the reason it even exists.

Make clear exactly what the company does with statements like “We strive to provide our customers with …….”

3. Include a “How”

Take this as an opportunity to differentiate your company from its competitors.

How do you provide a product or service that’s different or better than how your competitor provides it?

4. Talk About the Value You Bring to the Table

This is where you can really set yourself apart from the competition. This is the “why” customers should buy from you.

Do you offer the lowest prices? Fastest delivery? Exceptional customer service? Whatever it is that sets you apart and gives your particular products, services or company an advantage talk about it in the mission statement.

5. Make Sure It’s Plausible

It’s okay to shoot for the stars just to settle for the moon, but not in a mission statement.

Being overly ambitious will only set you and your employees up for failure, hurt morale and make you lose credibility. You will also scare away potential investors if they think that you are not being realistic in your mission statement.

6. Make It Unique and Distinctive

Imagine if someone who knew nothing about your business walked in and saw how it was operating, then they read your mission statement. Would they be able to recognize that mission statement was attached to that business? If not re-work it.

7. Think Long Term

A mission statement should be narrow enough so that it provides a common framework for the existing business, but open enough to allow for longer term goals. It should be able to grow as the business grows.

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8. Get Feedback

This is very important, especially from managers and employees.

Getting their input can clarify how they currently see the company and their role within the organization. It’s also a good way to get people “on-board,” as studies show that people are more likely to go along with an idea if they feel included in the decision making process beforehand.

9. Review Often and Revise as Necessary

You should review the missions statement often for two reasons.

First, as a reminder of what the essence of the company is. It’s easy to forget when you are in the day to day grind of the business.

And two, to make sure that the mission statement is still relevant. Things change, and not everything can be anticipated at the time a mission statement was written.

For example, if a mission statement was written before the advent of the internet, a company that use to sell things door to door now probably has a website that people order from. You should always update the mission statement to reflect these changes.

The Value of Mission Statements: Why Go Through All of These in the First Place?

It may seem like a lot of work just for a few sentences that describe a company, but the value of a well written mission statement should not be discounted.

First of all, if you are an entrepreneur, crystallizing the what, how, whom and value questions will keep you focused on the core business and its values.

If you are a manager or other employee, knowing the company’s basic tenants will help inform your interactions with both customers and colleagues alike.

Strategic Planning

A relevant mission statement acts as a framework for strategic planning. It provides guidance and parameters for making strategic decisions for the future of the company.

Measuring Performance

By having the company’s mission in a concrete form, it also allows for an objective measurement of how well the organization is meeting its stated goals at any one time.

Management can identify strengths and weaknesses in the organization based on the criteria set forth in the mission statement and make decisions accordingly.

Solidifying the Company’s Goals and Values for Employees

Part of a well run organization is nurturing happy and productive employees.

As humans, we all have an innate need for both purpose and to be part of something larger than ourselves. Providing employees with a clearly defined mission statement helps to define their role in the larger organization. Thus, fulfilling both of these needs.

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Now I’m not saying that a mission statement can overcome low pay and poor working conditions, but with everything else being equal, it can contribute to a happier and more productive workforce.

To Hold Management Accountable

By creating a mission statement, a company is publicly stating its highest values and goals for the world to see. By doing so, you are inviting both the public and your employees to to scrutinize how well the company lives up to its ideals.

So if you state that you only provide the highest quality products, and then offer something less, it’s fair for both the public and the employees to question, and even call for a change in management.

If management doesn’t take the mission statement seriously, no one else will either; and the legitimate authority that management rely’s on will be diminished.

To Serve as an Example

This is the opposite side of the coin from the previous statement. If the highest levels of management are seen taking the mission statement seriously and actively managing within the framework of the statement, that attitude filters down throughout the organization.

After all, a good employee knows what’s important to their boss and will take the steps necessary to curry favor with them.

Finally, use the company’s mission statement as a way to define roles within the company. You can do this by giving each division in the company a copy of the mission statement and challenge the head of each division to create a mission statement for their respective departments.

Their individual mission statements should focus on how each department fits in and ultimately contributes to the success of the company’s overall mission statement. This serves as both a clarifying and a team building exercise for all parts of the organization.

Final Thoughts

Developing a mission statement is too often just an after-thought, especially for entrepreneurs. We tend to prioritize things that we perceive will give us the biggest “bang for our buck.”

Somehow, taking the time and effort to sit down and think seriously about the what, whom, how and value of our business seems like a waste of time. After all, we got in the business to make money and become successful, isn’t that all we need to know?

That mindset will probably get you started okay, but if you find yourself having any success at all, you’ll find that there really is such a thing as growing pains.

By putting in the time and effort to create a mission statement, you are laying the groundwork that will give you a path to follow in your growth. And isn’t building long term success what we are really after?

More Resources About Achieving Business Success

Featured photo credit: Fab Lentz via unsplash.com

Reference

[1] Southwest Airlines: About Page
[2] Fit Small Business: 10 Vision Statement Examples To Spark Your Imagination

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David Carpenter

Lifelong entrepreneur and business owner helping others to realize the American Dream of business ownership

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Last Updated on April 7, 2020

The Secret to Success Is Failure

The Secret to Success Is Failure

You see a job that you’d love to do; and, you decide to go for it.

You submit your application, and then are pleased to find a few days later that you’re invited for an interview. This goes well, and you begin to have quiet optimism that a job offer will be coming your way soon…

It doesn’t.

Instead, you receive a letter saying thank you — but, they’ve decided to go with another candidate.

At this point, you could allow yourself to feel defeated, sad, and perhaps even a little angry. These are normal responses to bad news. Yet, it’s not wise to let them fester and disrupt your goals. Successful people don’t let failures kill their dreams.

Sure, they might temporarily feel deflated. But, very quickly, they pick themselves back up again and begin planning their next steps towards success.

How about you? Do you currently feel embarrassed or guilty about failing?

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Don’t worry if you do, as most of us have been programmed since childhood to see failure as a bad thing. Yet, as I’m going to show you in the next few minutes, this programming is dead wrong — failure is actually an essential part of success.

Don’t Be Tempted by Perfection

The first thing I want you to think about is this:

Resisting failure is, at its core, seeking perfection. And, perfection doesn’t exist.

That’s why perfectionists are also likely to be chronic procrastinators.

As Psychology Today noted in their article Pitfalls of Perfectionism, people who constantly seek for perfection stop themselves from engaging in challenging experiences.[1] That’s because these perfectionists are less creative and innovative than the average person — plus they’re less likely to take risks. Add these factors together, and you have someone who is overly focused on their own performance and is always quick to defend themselves. Unfortunately, these traits prevent them from having the necessary focus when it comes to learning new tasks.

Let me be clear: Striving for perfection is not the same as striving for excellence.

The former is a fool’s quest for the unattainable; while the latter is really just about doing our very best (which we can all obtain).

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And, there’s another problem that perfectionists have to deal with. Namely, when they fail to reach their ideal, they feel dejected and defeated. And — as you can imagine — repeat this often enough, and these people can end up feeling bitter and depressed about their lives.

So, forget about seeking perfection, and instead, focus on always doing your very best.

Why Failure Is Good

I recently came across a Forbes article Failing Your Way To Success: Why Failure Is A Crucial Ingredient For Success[2] that helped explain why most people are opposed to failure.

The article referenced the work of two world-renowned psychologists (Daniel Kahneman and Amos Tversky), who were awarded a Nobel Prize for their work. They discovered something very interesting: the effect of a loss is twice as great as the gain from a win.

Have you ever thought about that before?

What it means is that failure has a far greater negative impact on us than the positive impact of an equivalent win. It’s no wonder then that most people are afraid to fail.

And, here’s where it gets interesting…

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Amazon (which along with Apple, Facebook and Google, is considered one of the Big Four technology companies) has a culture that is tolerant of failure. And Jeff Bezos — Amazon’s founder and CEO — believes that this culture is one of the main reasons for the company’s big achievements over the last 25 years. In a letter to shareholders, he said:

“Failure comes part and parcel with invention. It’s not optional. We understand that and believe in failing early and iterating until we get it right.” 

The truth is, failure can open up a world of exciting opportunities for you.

How does it do this?

By constantly showing you new avenues to travel on. And, by helping you learn from your mistakes — so you can be better next time around. It also helps you identify what’s not working for your life, and what is.

So instead of seeing something as detrimental to success, you should see it as a tool FOR success. A tool that will help you to continually refine your journey in life.

If you still need some convincing that the secret to success is failure, then take a look at the following excerpts from our article 10 Famous Failures to Success Stories That Will Inspire You to Carry On:

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  • J.K. Rowling encountered a catalog of failures shortly after graduating from college, including: being jobless, the breakdown of her marriage, and living as a lone parent. However, instead of giving up on life, she used these failures to propel her to write the Harry Potter fantasy series — the best-selling book series in history.
  • Walt Disney didn’t have an easy start either. He dropped out of school at a young age in a failed attempt to join the army. Later, one of his early business ventures, Laugh-o-Gram Studios, went bankrupt. He was also fired from a Missouri newspaper for “not being creative enough.” (Yes, you read that correctly.) Was he defeated by these failures? Just ask Mickey Mouse.
  • Michael Jordan had this to say about the power of failure: “I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game-winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.”

Embrace Failure, and Prepare for Success

I hope this has been an eye-opener for you.

Failure has long been branded a leper; but in reality, it’s a healthy, essential component of success.

The trick of course is to develop the mindset of a winner. Someone who sees failures as stepping stones to success — and defeats as important learning experiences.

So, are you ready to embrace your failures and take the proud road to success?

I sincerely hope so.

Featured photo credit: Bruce Mars via unsplash.com

Reference

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