Greg Kitzmiller10.01.03
Do Mission Statements Matter?
Reviewing the importance of a mission statement and, more importantly, sticking to it.
By Greg Kitzmiller
Firms place mission statements in prominent places to represent who an organization is and what drives them. It is often asked why companies make such a big deal about mission statements when firms seem to ignore them in practice. And while that should not be the case, it is often true. In keeping with the up-and-coming markets theme in this issue, it is relevant to consider if firms plan their way into future business based on a core mission or if they simply concentrate on what is hot.
I think a case can be made that a lot of mission statements are bad. To understand why this may be so, it is important to explore what may be wrong with some mission statements today. If companies want to take advantage of future trends they must know what their unique role will be. How this is expressed in a mission statement can make a powerful difference in an organization.
The Key Issues with Mission Statements
There are several key problems with mission statements and, more important, with firms setting a clear direction. First, many firms write a mission statement for public relations value. These statements often use words like “best” or “most admired,” referring to science or industry, which makes customers and others feel good about a particular firm. There is nothing wrong with being the best. But whole idea is to know what the company stands for, where it is going and why. Can the values be stated in such a way as to motivate everyone to strive for the best without declaring, “We want to be the best?” Of course, it may be true that those writing the statement and those running the firm really do want it to be the best. However, if there are no direct programs in place to implement state-of-the art strategies that clearly keep a firm ahead of the competition, while providing outstanding customer service and value, then the statement is meaningless.
Second, many firms write mission statements that could easily be adopted by any firm in their industry or even by any firm at all. For example, using a statement such as “We strive to be the most admired firm in the world” could apply to Coca-Cola, GM, IBM, Microsoft or any firm that might feel it has a shot at such a bold claim. There is nothing wrong with striving to be the best but a statement such as this does not suggest anything that describes the firm well or why it should be so admired.
Third, even firms that write good mission statements spend more time writing those important words than trying to implement them. Just because a firm can write a good statement, print it on cards, hang it on walls and preach it to the masses does not mean that it will leave people inspired. Leaders inspire. People need to see the words in action in order to get excited about even the best intention.
A Mission of Purpose
A mission statement should state the organization’s purpose, provide a sense of uniqueness and give everyone inside and outside the organization a good sense of what the organization focuses on. Where does the expertise lie? Companies must know that whatever goes into a statement must be credible, realistic, attainable and differentiating. And it must be a statement that an organization can live by.
Write it and live it! If a mission statement can be written that gives the organization a clear sense of differentiation and purpose then it only counts if the organization can and does live for that statement. The result is common ground, focus and efficiency, from which a strategic plan can be created.NW