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  2. 2. MISSION STATEMENT OF THE COMPANY Definition: A mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate. If you don't have a mission statement, create one by writing down in one sentence what the purpose of your business is. Ask two or three of the key people in your company to do the same thing. Then discuss the statements and come up with one sentence everyone agrees with. Once you have finalized your mission statement, communicate it to everyone in the company. It's more important to communicate the mission statement to employees than to customers. Your mission statement doesn't have to be clever or catchy--just accurate. If you already have a mission statement, you will need to periodically review and possibly revise it to make sure it accurately reflects your goals as your company and the business and economic climates evolve. To do this, simply ask yourself if the statement still correctly describes what you're doing. If your review results in a revision of the statement be sure everyone in the company is aware of the change. Make a big deal out of it. After all, a change in your mission probably means your company is growing-and that's a big deal. Once you have designed a niche for your business, you're ready to create a mission statement. A key tool that can be as important as your business plan, a mission statement captures, in a few succinct sentences, the essence of your business's goals and the philosophies underlying them. Equally important, the mission statement signals what your business is all about to your customers, employees, suppliers and the community. The mission statement reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community.
  3. 3. A mission statement is a brief summary of an organizations goals and objectives. These organizations may include a corporate organization, a club, a hospital department, a university, a school or any other business that offers some sort of service to the community or public in general. Most professional companies will have a mission statement posted on their notice boards to indicate commitment and dedication regarding the services they hope to offer. It is also a reflection of the quality and scope of the organizations general portfolio. It also reflects professionalism and a sense of order. Companies with a mission statement have some idea of where they are going and where they want to be in the future. HOW TO PREPARE A MISSION STATEMENT: There are 7 steps for preparing a mission statement, they are as follows: Steps 1 1. Define the aim of your organization or company. The aim refers to what kind of service you wish to offer. This should be brief and to the point. A reader should be able to grasp the general functioning of your organization by reading the AIM. This will serve as the introduction to your mission statement. Ads by Google Small Business Management Get your free and friendly business management solution for free. 2 2. Define the objectives of the organization. This simply refers to how your organization plans on achieving these aims. For AIMS, see above. You can define objectives by stating very briefly, the criteria, the percentage of quality, times of service etc, by which your organization operates. 3 3. Mention the standards for optimal operation. If your company makes children's toys, specify clearly the safety standards required before the production is put into place. This should also be brief and to the point. 4
  4. 4. 4. Do not write lengthy drawn out policies. Policies are different from a mission statement. A policy is a different protocol that specifies how, when and why something has to be done. 5 5. Type a mission statement in large and easily recognizable BOLD ALPHABETS. This should be clearly VISIBLE without having to use microscopic lenses to read them. 6 6. Draw an attractive border around the page containing the mission statement. This can be done in color to make the document appear attractive. However, maintain a professional appeal when creating this document. Too much color or artistic creativity will lose the professional look. 7. Minimize your information to preferably ONE PAGE. Remember this should not be a long drawn out lengthy document. It should be a brief overview of the entire organization. It is also acceptable for departments within an organization to have their own mission statements. This will depend on the size and different services being offered by the company. HOW TO WRITE A MISSION STATEMENT: Learn how to Write a Mission Statement! Mission Statements are hard to write! A Mission Statement should be short, concise, clear, vivid and inspiring. The most effective way to write a Mission Statement is to avoid jargon, complicated words or concepts - remember you are writing this for the public, not just employees of the company. A company Mission Statement should be included in documents such as Business Plans and Staff Handbooks. A Mission Statement can be described as a cross between a company slogan, or tagline, and an executive summary! Learn how to write a Mission Statement which is both memorable and engaging. Write a combination of both a company's mission and a company’s vision of the future. As we said at the beginning it is difficult to write a Mission Statement - but our helpful hints and tips will help!
  5. 5. Steps 1. Brainstorm: Ask every member of the organization to answer the following questions, listing any words, phrases or ideas that come to mind without criticizing or commenting at this level:[1] Ads by Google Mumbai | Virtual Offices Special Offer - 40% OFF Now! Prime Address & Mail Forwarded. o What are the opportunities or needs that we exist to address? - This defines the purpose of the organization. o What are we doing to address those needs? - This defines the business activity. o What principles or beliefs guide our work? - This defines the core values to guide decisions. 2 2. Consolidate. Look for patterns in their answers. Don't edit, just study and observe. You want to pick out phrases and words that speak to many different people in the organization, and figure out when people are saying the same thing in different ways (e.g. “finding creative”, "being innovative”, “thinking outside the box” are all similar ways to say the same thing) and begin to think about ultimately choosing one such expression. [2] 3 3. Set aside several hours or a full day to work on the statement. Get the people together who'll be working on it with you, and make sure that they
  6. 6. can commit to the purpose of the meeting. Bring refreshments, notes from the previous steps, paper and pencils. You might need to explain to them what a mission statement is, and why it's important. You may also need to remind them that a mission statement is built through collaboration and consensus, and it hinges on everyone being as happy with it as possible, not just gaining the leader's approval.[3] 4. Pull it together. One way to approach a mission statement is by filling in the blanks: The mission of (Organization Name) is to (verb) the (population served) of (location) through (core services).[4] o Remember that a mission statement should be timeless; it should be just as applicable 5 years from now as it is today. o Write up several possible statements and then combine them by using elements out of them to allow different people and groups to feel involved. o The mission statement includes an introductory clause and clear expressions of the services, different products or aspects of the company or organization. o Mission statements often seem impossible to achieve. Create something that is possible, but not too easy or too idealist. o Avoid a generic mission statement that any business could have, such as, "To put the customer first and provide an excellent service". Which company doesn't intend to put the customer first and provide an excellent service? 5. Polish it up. You'll probably go through several drafts, but eventually, what you want is a statement that's short and engaging enough that anyone connected to the organization feels comfortable repeating it. Consider the following examples: o Dell: "Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve."[5] o March of Dimes: "Our mission is to improve the health of babies by preventing birth defects, premature birth, and infant mortality. We carry out this mission through research, community services, education and advocacy to save babies' lives. March of Dimes researchers, volunteers, educators, outreach workers and advocates work together to give all babies a fighting chance against the threats to their health: prematurity, birth defects, low birth weight."[6] o Canon Photocopiers around 2000 had the direct but effective internal mission statement of "Kill Xerox" which summed up in two words the whole reason why they (Canon photocopiers) were in that business. 6
  7. 7. 6. Spread the word. Distribute copies of the mission statement. Put it in clear view of both customers and employees. Add it to your website and brochures. Whenever you have a meeting to review how the organization is doing, use your mission statement as one measuring stick. Ask yourself: How well are we living up to our mission? Ads by Google Small Business Management Get your free and friendly business management solution for free. Advertise On the Internet Advertise Your Business On Google. Get A Free Rs. 1,500 Trial Coupon! SWOT Analysis Tool Get a free 30 day trial of Mindjet the leading Mind mapping Tool! Six Rules for Writing and Implementing Your Own Mission Statement Writing your own mission statement can be a tough job, but ultimately you'll get more out of the assignment than just your mission statement. You’ll end up with is a clear, concise definition of what your company does, how it does it, why it does it and where it's going in the future. This exercise in itself can help focus your company on the crucial issues that perhaps you didn't realize or were unwilling to face squarely and honestly. Each company composes its mission statement in its own way, and Say It and Live It will give you tips on how to write a mission statement designed for your company. The book is filled with examples on how other companies have done it and their wisdom and trials can help you to write yours. Read what they've done, and use their techniques when they seem right for you. Be creative; devise and invent methods that suit your company's culture. Although corporations have used the term 'mission statement' to include all kinds of philosophical statements including missions, values, visions, principles, credos, bonds and so on, let's break that apart for the moment. For most companies, the actual 'mission statement' is short and describes what they do and what business they're in. After that, they have the enabling or supporting material like values, principles or philosophies which help them accomplish their mission statement's goals. Rule #1: Keep the statement simple. Not necessarily short, but simple.
  8. 8. Who should write it? Some companies like Ben & Jerry's had one person write it. Twentieth Century Investors used a team approach. While other companies like Boeing and Saturn used outside consultants for some parts. Different yet, IBM used a top-down approach - what the CEO wrote becomes dogma. While other CEOs - like Bob Allen of AT&T - wrote The Common Bond, sent it out for review by employees, then altered it based on their comments. There is no consensus, but the best approach seems to be that the top manager or managers write the mission statement then send it out for review and comment by the senior managers and employees. Why? This way, everyone feels they have a hand in producing the document. This involvement helps get people on board. It gets them excited about the document's beliefs and principles. They have a stake in its fulfillment. And that's Rule #2: Allow company-wide input. Sometimes people inside a company are too close to the action to look objectively at the big picture. On the other hand, who knows more about the company than those inside who live it every day? A powerful strategy is to write the mission statement in-house with the help of an outsider. Outsiders bring a fresh look at stale problems and they can help steer around political swamps. Rule # 3: Outsiders can bring clarity and a fresh perspective to your statement-writing process. What should the mission statement sound like, very proper or colloquial? Northwestern Mutual Life still uses the exact wording of its original statement written in 1888. Even though some of the phrases are not colloquial anymore, it gives the company the old-fashioned flavor that it relishes and is its strength. The new, fast moving General Electric uses only three words and one of them is made up - 'boundary less' - to show innovation and a break from the old way of doing business. Hanna Anderson fancies itself a homey, friendly company and its choice of words reflects warmth and tenderness. The same can be said for Celestial Seasonings.
  9. 9. Rule #4: The wording and tone should reflect the company's personality or what the company would like to be. After you've written your statement, you're not done. The hardest part lies ahead: Dissemination and adoption. How do you get the statement out to workers, and how do you get them to live it? Getting the word out and in front of workers all the time, making it part of the culture, is a challenge. It's also the part where companies have shown the greatest creativity. Perhaps the most amusing tack comes from Southwest Airlines. They put their mission statement in boxes of Crackerjacks and gave them out to employees. When IBM introduced their Principles, they not only used their company publications but let managers know that the corporate office would foot the bill for copies to be produced and disseminated to hang in offices around the world. Merck uses a novel approach for dissemination of their Declaration of Intent. It's an actual declaration, signed by all 450 senior managers, framed and hung in all areas. Wallet-sized cards seem to be a good choice for many companies including Goodyear, Kellogg's, Ritz-Carlton, Binney & Smith and Motorola. Many use two versions; one to carry and one to have in your desk or hanging on the wall. Motorola employees use the card for impromptu challenges and games. Video presentations about the mission statement work well, too, especially when the CEO can't reach everyone personally. Delta uses a video presentation as does Gillette. For companies with many branches it’s the only way the CEO can 'visit' them all. Honda of America teaches courses in the mission statement. United Parcel pays hourly workers to attend sessions on their own time about their mission statement. Rule #5: Share the mission statement in as many creative ways as possible and in as many languages as necessary. Keep it in front of people constantly. Of course, all of these tips are hollow unless the mission statement is really used. At many companies such as Intel and Boeing, all employees, including managers, are judged by how well they follow their mission statements. In many ways this is imminently fair. Everyone knows exactly what is expected of them. The mission statement must continue to be relevant. At Gannett, upper management looks at the Game Plan every year to see if it needs updating in a business those changes rapidly. Arthur D. Little also continually checks its mission statement to make sure it still makes sense for them. Many companies have short and long term goals in their mission statements. This forces them to visit the statement constantly to see how they're measuring up. Boston Beer, for example, has picked 2006 as its date for Samuel Adams to be ... the largest and most respected craft or imported beer in the United States... Other companies call for themselves to be the leader in an industry and this pledge also invites constant scrutiny of the mission statement. Last, Rule #6: Rely on the mission statement for guidance. Challenge it continuously, and judge employees by how well they adhere to its tenets. Management must say it and live it.
  10. 10. Reading the mission statements and commentaries in Say It and Live It along with the tips presented here will help you to write your own mission statement and following your statement will help your company succeed. Mission Statement Examples The best example of a mission statement will define a company and its purpose in 30 seconds or less. Sometimes it helps to look at samples of other company‟s mission statements to get a better idea of how to write your own mission statement. Gathered below are several mission statement examples from different businesses. Coffee shop mission statement example The Daily Perc Mission is three-fold, with each being as integral to our success as the next. Product Mission – Provide customers the finest quality beverage in the most efficient time. Community Mission – Provide community support through customer involvement. Economic Mission – Operate and grow at a profitable rate through sound economic decisions. Clothing store mission statement example Mahogany Western Wear‟s mission is to offer quality, name brand western wear in an assortment of sizes and styles to accommodate all varying body styles and shapes. Convenience store mission statement example The mission of Ellensburg‟s Food and Gas is to offer commuters on Highway 310 competitive gas prices and great food. The company will make a healthy profit for its owners and provide a rewarding work environment for its employees. Day spa mission statement example Our mission is to run a profitable business by providing high-end therapeutic massage and aesthetician services in a caring, upscale, professional environment. We offer massage in a variety of styles – traditional Swedish massage, Sports Massage, Deep Tissue work, Sports Massage, Hot Stone Massage, Reflexology, and others. Our licensed aestheticians offer the latest in skin treatments, body treatments and anti-aging therapies. Our goal is to tailor the client‟s experience based on initial interview information, as well as feedback during the treatments, to ensure the client‟s comfort and satisfaction, and to increase repeat business. We are mindful of the overall experience – using only the finest oils and lotions, beauty treatments and aromatherapies. Special lighting, music,
  11. 11. decor, and textiles are used throughout the spa to complete the comfortable, plush environment and enhance the client‟s overall spa experience. Nonprofit mission statement example The mission of Helping Hands is to alleviate hunger in Johnson County by soliciting, collecting, growing, and packaging food for distribution through a network of agencies and programs, as well as provide opportunities for self sufficiency. Our services include food box programs, emergency shelters, congregate meal sites, residential treatment services, and children‟s programs. Insurance company mission statement example Acme Insurance Inc. is dedicated to providing insurance products that provide quality protection with value pricing. We wish to establish a successful partnership with our clients, our staff members, and our insurance companies, that respect the interests and goals of each party. Top 10 Company Mission Statements in 2012 Companies often list their vision and their mission statements on their sites. The difference between a mission statement and a vision statement is that a mission statement focuses on a company‟s present state while a vision statement focuses on a company‟s future. However, some companies tend to blend these statements. The following are some of the top technology-based company mission statements: Amazon: Amazon‟s vision is to be earth‟s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online. (They list this as their mission as a combination mission/vision on their site). Apple: Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. Dell: Dell‟s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. Face book: Face book‟s mission is to give people the power to share and make the world more open and connected. Google: Google‟s mission is to organize the world„s information and make it universally accessible and useful. Microsoft: Microsoft‟s mission is to enable people and businesses throughout the world to realize their full potential. Skype: Skype‟s mission is to be the fabric of real-time communication on the web.
  12. 12. Twitter: Twitter lists its mission as “a work in progress” as it has yet to be fully developed. Yahoo!: Yahoo!‟s mission is to be the most essential global Internet service for consumers and businesses YouTube: YouTube‟s mission is to provide fast and easy video access and the ability to share videos frequently Corporate Mission Statements: A Strategic Management Issue The Mission Statement is a crucial element in the strategic planning of a business organization. Creating a mission is one of the first actions an organization should take. This can be a building block for an overall strategy and development of more specific functional strategies. By defining a mission an organization is making a statement of organizational purpose. I will define mission statements, specify their importance, discuss important factors of mission statements, and give a process to follow in their development. Defining a mission statement is the first step in this discussion. There are several ways that mission statements are defined. Some people get a vision statement confused with a mission statement. "A vision statement pushes the association toward some future goal or achievement, while a mission statement guides current, critical, strategic decision making," (Drohan, 1999). I n The Mission Statement Book by Jeffrey Abrahams, TRINOVA Corporation defines a mission statement in the following way, "A mission statement is an enduring statement of purpose for an organization that identifies the scope of its operations in product and market terms, and reflects its values and priorities," (Abrahams, 1995). Christopher Bart a leading researcher in the art of mission statements says, "A good mission statement captures an organizations unique and enduring reason for being, and energizes stakeholders to pursue common goals. It
  13. 13. also enables a focused allocation of organizational resources because it compels a firm to address some tough questions: What is our business? Why do we exist? What are we trying to accomplish?" (Bart, 1998). Stone gives another definition extracted from Say and Live it: the 50 Corporate Mission Statements That Hit the Mark. "Corporate mission statements...are the operational, ethical, and financial guiding lights of companies. They are not simply mottoes or slogans; they articulate the goals, dreams, behavior, culture, and strategies of companies," (Stone, 1996). Basically, a mission statement is designed to say exactly what the organization anticipates it will achieve What Should Be in a Mission Statement? The following concepts are critical in defining "who" your organization is: The Purpose Statement The purpose statement clearly states what your organization seeks to accomplish: Why does your organization exist? What is the ultimate result of your work? Purpose statements usually include two phrases: an infinitive that indicates a change in status, such as to increase, to decrease, to prevent, to eliminate, and An identification of the problem or condition to be changed. An example of a purpose statement is "to eliminate homelessness." In defining purpose, it is essential to focus on outcomes and results rather than methods: How is the world going to be different? What is going to change? Thus, the purpose of a mental health counseling agency would never be simply "to provide counseling services," for that is describing a method rather than a result. Rather, the purpose might be "to improve the quality of life" for its clients. The Business Statement This statement outlines the "business(es)" (i.e., activities or programs) your organization chooses in order to pursue its purpose. Specifically, you must answer, "What activity are we going to do to accomplish our purpose?" For example, there are many ways to work on the problem of homelessness: to construct housing for homeless individuals to educate the public and advocate for public policy changes To provide job training to homeless individuals.
  14. 14. Each of these are different businesses, but they may be different means of achieving the same purpose. Business statements often include the verb "to provide" or link a purpose statement with the words "by" or "through." For example: "To eliminate homelessness by providing job training to homeless individuals." A cautionary note: If the word "and" is in your purpose or business statement, ask yourselves, "Are we really committed to both ideas connected by the word?" or "Have we simply not been able to accept that one idea is more important?" Values Values are beliefs which your organization's members hold in common and endeavor to put into practice. The values guide your organization's members in performing their work. Specifically, you should ask, "What are the basic beliefs that we share as an organization?" Examples of values include: a commitment to excellent services, innovation, diversity, creativity, honesty, integrity, and so on. Values may include beliefs such as: "Eating vegetables is more economically efficient and ecologically responsible than eating beef." (Vegetarian Association) Marvin Weisberg writes in his book Productive Workplaces that values come alive only when people are involved in doing important tasks. Ideally, an individual's personal values will align with the spoken and unspoken values of the organization. By developing a written statement of the values of the organization, group members have a chance to contribute to the articulation of these values, as well as to evaluate how well their personal values and motivation match those of the organization. The example of a mission statement cited at the beginning of these notes includes all three elements of what should be included in a mission statement. To review: At the Developmental Studies Center we develop, evaluate, and disseminate programs [business] that foster children's ethical, social, and intellectual development [purpose]. While nurturing children's capacity to think skillfully and critically, we also strive to deepen children's commitment to prosocial values such as kindness, helpfulness, personal responsibility, and respect for others - qualities we believe are essential to leading humane and productive lives in a democratic society [values]. Here is another example of a mission statement which includes all three elements:
  15. 15. The YMCA of San Francisco, based in Judeo-Christian heritage [values], seeks to enhance the lives of all people [purpose] through programs designed to develop spirit, mind and body [business]. In addition to the three elements discussed above, you may want to address the following questions in developing your organization's mission statement: What is the problem or need your organization is trying to address? What makes your organization unique? Who are the beneficiaries of your work? Clearly, the answers to these questions could be included in the mission statement or added as elaboration of the mission statement. Sample Mission Statements These free sample mission statements will help you understand what makes a good mission statement and what doesn't. The purpose of a mission statement is to describe what your values are, what you do, and who you serve. A mission statement is not a slogan. You can come up with a slogan; you can even derive a slogan from a good mission statement. But remember that the mission statement‟s principle function is not to sound catchy, but to let people in and out of the organization know what its purpose is and to guide decision-making. Be clear and specific in your wording. For instance, you can include your geographic reach and services provided. "To end homelessness" might perfectly describe your organization‟s mission… if it‟s global in scope and uses a plethora of venues to achieve its goal. But chances are something more specific and realistic like "To combat homeless in Hometown County through job-training, affordable housing, and advocacy." would work better. You don‟t want your organization‟s mission statement to be too narrow, however. "To decrease homelessness by 25% in Hometown County through affordable housing at the 12th Street Apartments" might be a great goal for a specific project, but as a mission statement is very limiting in terms of future partnerships or growth.
  16. 16. The following mission statement from a local United Way is both clear and flexible: "To inspire the people of York County to make a difference in the lives of their neighbors through financial generosity and volunteer commitment." Dissected, you find that the mission statement conveys: Values: making a difference in the local community Geographic reach: York County Purpose: Leveraging donations and volunteers A mission statement often is a full sentence: "The mission of the American Institute of Philanthropy (AIP), a nonprofit charity watchdog and information service, is to maximize the effectiveness of every dollar contributed to charity by providing donors with the information they need to make more informed giving decisions." This statement is effective because it gives someone without prior knowledge of the organization a good understanding of what the AIP does and why. Vision Statement Definition: A vision statement is sometimes called a picture of your company in the future but it’s so much more than that. Your vision statement is your inspiration, the framework for all your strategic planning. A vision statement may apply to an entire company or to a single division of that company. Whether for all or part of an organization, the vision statement answers the question, "Where do we want to go?" Mission Statements and Vision Statements Vision Statements and Mission Statements are the inspiring words chosen by successful leaders to clearly and concisely convey the direction of the organization. By crafting a clear mission statement and vision statement, you can powerfully communicate your intentions and motivate your team or organization to realize an attractive and inspiring common vision of the future. "Mission Statements" and "Vision Statements" do two distinctly different jobs.
  17. 17. A Mission Statement defines the organization's purpose and primary objectives. Its prime function is internal – to define the key measure or measures of the organization's success – and its prime audience is the leadership team and stockholders. Vision Statements also define the organizations purpose, but this time they do so in terms of the organization's values rather than bottom line measures (values are guiding beliefs about how things should be done.) The vision statement communicates both the purpose and values of the organization. For employees, it gives direction about how they are expected to behave and inspires them to give their best. Shared with customers, it shapes customers' understanding of why they should work with the organization. Tip: Mission Statements and Vision Statements usually refer to an organization or an organizational unit. Team Charters can have a similar role when briefing teams. First we look at creating mission statements. Then we create vision statements. Mission Statement Creation 1. To create your mission statement, first identify your organization's "winning idea". 2. This is the idea or approach that will make your organization stand out from its competitors, and is the reason that customers will come to you and not your competitors (see tip below). 3. Next identify the key measures of your success. Make sure you choose the most important measures (and not too many of them!) 4. Combine your winning idea and success measures into a tangible and measurable goal. 5. Refine the words until you have a concise and precise statement of your mission, which expresses your ideas, measures and desired result. Tip: OK, so we're a bit glib here talking about the "winning idea" – this is a prime subject of the discipline of business strategy, and it can take a lot of effort to find, shape and test. See our articles on USP Analysis, SWOT Analysis and Core for starting points, and make sure you do the homework needed! Example: Take the example of a produce store whose winning idea is "farm freshness". The owner identifies two keys measures of her success: freshness and customer satisfaction. She creates her mission statement – which is the action goal that combines the winning idea and measures of success.
  18. 18. The mission statement of Farm Fresh Produce is: "To become the number one produce store in Main Street by selling the highest quality, freshest farm produce, from farm to customer in under 24 hours on 75% of our range and with 98% customer satisfaction." Vision Statement Creation Once you've created your mission statement, move on to create your vision statement: 1. First identify your organization's mission. Then uncover the real, human value in that mission. 2. Next, identify what you, your customers and other stakeholders will value most about how your organization will achieve this mission. Distil these into the values that your organization has or should have. 3. Combine your mission and values, and polish the words until you have a vision statement inspiring enough to energize and motivate people inside and outside your organization. Using the example mission statement developed for Farm Fresh Produce, the owner examines what she, her customers and her employee’s value about her mission. Mission Statement vs. Vision Statement Companies summarize their goals and objectives in Mission and Vision statements. Both these things serve different purposes for the company but are often confused with each other. While a mission statement describes what the company wants now, the vision statement describes what the company wants to be in the future. Comparison chart Mission Statement Vision Statement About: A Mission statement talks A Vision statement outlines about HOW you will get to where you want to be. where you want to be. Defines Communicates both the the purpose and primary purpose and values of your objectives. business Answer: It answers the question, “What It answers the question, “Why do we do?” are we here?” Time: A mission statement talks A vision statement talks about about the present leading to its your future. future.
  19. 19. Mission Statement Vision Statement Function: It lists the broad goals for It lists where you see yourself which the organization is some years from now. It formed. Its prime function is inspires you to give your best. internal; to define the key It shapes your understanding of measure or measures of the why are you working here organization's success and its prime audience is the leadership team and stockholders. Change: Your mission statement may Your vision should remain change, but it should still tie intact, even if the market back to your core values and changes dramatically, because vision. it speaks to what you represent, not just what you do. Purpose A mission statement is spelled out to narrate what the organization is about. It talks about what the company is right now. It lists the broad goals for which the company is formed. It discusses in details what the company does, what the structure is and what its plans are. A vision statement talks about what the company wants to be. It describes what the "vision" of the company is for its future. It lists where the company sees itself some years from now. Features Features of an effective vision statement include: Clarity and lack of ambiguity Paint a vivid and clear picture, not ambiguous Describing a bright future (hope) Memorable and engaging expression Realistic aspirations, achievable Alignment with organizational values and culture Time bound if it talks of achieving any goal or objective Features of an effective mission statement are: Purpose and values of the organization
  20. 20. Which business the organization wants to be in (products or services, market) or who are the organization's primary "clients" (stakeholders) Which are the responsibilities of the organization towards these "clients" What are the main objectives which support the company in accomplishing its mission Which comes first? For a new start up business, new program or plan to re-engineer your current services, the vision statement will be formulated first as it will guide the mission statement and the rest of the strategic plan. For an established business where the mission is established, often the mission guides the vision statement and the rest of the strategic plan for the future. Developing Effective Mission and Vision Statements When used properly, mission and vision statements can be very powerful tools, especially for new and small firms. "It is awfully important to know what is and what is not your business." — Gertrude Stein In one of my first jobs out of college, the Fortune 500 Company that hired me had its mission posted in every cubicle: "To continuously exceed our customers' increasing expectations." I remember looking at it the first day. It sounded ambitious, but raised a lot more questions for me than it answered. Who are our customers? What expectations do they have? How can I contribute to fulfilling this mission? And how long did it take a group of our highly paid executives to choose that particular mission statement over "To be the number one company in our industry" or "To be recognized as a worldwide leader in excellence?" Unfortunately, in recent year’s vision and mission statements have become watered down in the corporate world to the point where they are essentially meaningless (bringing a case of beer along on sales calls may exceed customer expectations but not necessarily help a business achieve its goals). Because of this, vision and mission have been largely branded with negative connotations. However, when used properly, vision and mission statements can be very powerful tools, especially for new and small firms. Just as a successful coach has a vision for putting a team together and game plans for successful execution, vision and mission provide direction for a new or small firm, without which it is difficult to develop a cohesive plan.
  21. 21. In turn, this allows the firm to pursue activities that lead the organization forward and avoid devoting resources to activities that do not. Vision Statements for New and Small Firms Vision statements and mission statements are very different. A vision statement for a new or small firm spells out goals at a high level and should coincide with the founder's goals for the business. Simply put, the vision should state what the founder ultimately envisions the business to be, in terms of growth, values, employees, contributions to society, and the like; therefore, self-reflection by the founder is a vital activity if a meaningful vision is to be developed. As a founder, once you have defined your vision, you can begin to develop strategies for moving the organization toward that vision. Part of this includes the development of a company mission. Mission Statements for New and Small Firms The mission statement should be a concise statement of business strategy and developed from the customer's perspective and it should fit with the vision for the business. The mission should answer three questions: 1. What do we do? 2. How do we do it? 3. For whom do we do it? What do we do? This question should not be answered in terms of what is physically delivered to customers, but by the real and/or psychological needs that are fulfilled when customers buy your products or services. Customers make purchase decisions for many reasons, including economical, logistical, and emotional factors. An excellent illustration of this is a business in the Twin Cities that imports hand-made jewelry from east Africa. When asked what her business does, the owner replied, "We import and market east African jewelry." But when asked why customers buy her jewelry, she explained that, "They're buying a story in where the jewelry came from." This is an important distinction and answering this question from the need-fulfilled perspective will help you answer the other two questions effectively.
  22. 22. Honda Company Mission Statement - Global Quality, Youthfulness, Harmony and Joy Honda Company Founders Facts and Trivia: The Honda Company was founded by Soichiro Honda in 1946 as the Honda Technical Research Institute, focused on creating motorized bicycles. The company was incorporated on September 24, 1948 as Honda Motor Company. The first Honda car was the S500, which was introduced in 1963. In 1959, American Honda Motor Co., Inc. was opened in Los Angeles, California with just six employees. The first Honda manufactured in Marysville, Ohio on November 1, 1982. Honda Corporation Headquarters: The global headquarters for the Honda corporation are located in Tokyo, Japan. The U.S. headquarters for American Honda Motor Co, Inc. are located in Torrance, California. Honda Automobile Company Mission, Vision, and Values: The Honda Company Mission Statement is officially referred to as the Company Principle, and it seemingly is no different that the mission of every company that manufactures and sells cars in the world. The Honda Company Mission Statement is... "Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction." Larger than this company principle, Honda is guided by a foundational mission, which it refers to as its "Basic Principles" which are... "Respect for the individual. The Three Joys (buying, selling and creating)." And to inspire its management team as they lead the Honda automobile company into the future, Honda has a clear set of Management Policies, which make its Basic Principles and Mission Statement a real part of its daily operations...
  23. 23. Proceed always with ambition and youthfulness. Respect sound theory, develop fresh ideas, and make the most effective use of time. Enjoy work and encourage open communication. Strive constantly for a harmonious flow of work. Be ever mindful of the value of research and endeavor." Dreams inspire us to create innovative products that enhance mobility and benefit society. To meet the particular needs of customers in different regions around the world, we base our sales networks, research and development centers and manufacturing facilities in each region. Furthermore, as a socially responsible corporate citizen, we strive to address important environmental and safety issues.