Why A Mission Statement Is Crucial For Businesses Of All Sizes
May 17, 2023
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People launch businesses for all sorts of reasons.
Perhaps they want to pursue a passion or introduce a new product or service that fills a market gap. Maybe they’re buying an existing business or just want to be their own boss.
Of all the businesses in the world, there is one feature they share. They all have a mission — a purpose for why they exist. What they don’t all share but should is an articulation of that mission for their leadership, employees, clients, and customers.
Crafting a mission statement may appear to be one of those touchy-feely, unnecessary business exercises. But it’s not. Here’s why having a mission statement is crucial for businesses of all sizes.
It’s Necessary for Alignment
Industry innovator Henry Ford said, “If everyone is moving forward together, then success takes care of itself.” The words “forward” and “together” are important here. And they don’t happen by accident.
Strategic alignment occurs when stakeholders inside and outside the business understand the organization’s mission. They share a belief in that mission, and everything they do propels them toward achieving it.
Alignment can’t occur if there is no mission statement for people to read, discuss, and connect to. Misalignment will be reflected in employees pulling in different directions and not understanding their role in the business’s success. It will be obvious to customers and clients, who aren’t sure why they’re patronizing your business rather than your competition’s.
Business goals and the strategies and initiatives designed to achieve them are fated to be off-target without a defined mission. If you want to get everyone pulling in the same forward direction, you need to put your purpose into words. Only then can you put those words into action?
It Illuminates the Vision You Have for Your Business
Some people tend to confuse “vision” with “mission,” using them interchangeably. While an organization’s mission and vision are inexorably linked, they are not the same thing.
Vision is about the future of your business. What do you want your enterprise to be, to look like, to achieve in two or five, or 20 years? Vision is wanting your business to be the largest/best/top-performing/most profitable (pick your measure) at a certain point in the future.
Your mission, however, is all about the here and now. A mission statement articulates what your business is doing in the present moment. Moreover, the mission reveals the path toward achieving your vision for your enterprise.
For example, today, you’re producing a widget that’s innovative in the way it solves a problem. Someday, you want your widget to be the best-seller in your industry. What you’re doing now is what will set you up for success when “someday” arrives.
It Provides a Sense of Place
Everyone craves a sense of belonging, personally and professionally. The only way to truly feel like you belong at work is to understand how what you do matters. In other words, it’s not just that you belong but how the place you belong fits in the grand scheme of things.
A mission statement gives everyone a sense of perspective on where they fit, regardless of their role. Leadership and rank-and-file employees can begin to see themselves as a collective rather than disparate individuals and teams. Rather than imagining yourself as a random cog, you see that cog in its essential position inside the machine.
Understanding the mission of the business keeps employees and other stakeholders from operating in a vacuum. Instead, they make decisions and shape their goals around a single purpose. Customers, too, understand the purpose of your business and can choose to support the work it does.
Stakeholders who understand how their involvement factors into a company’s success are going to be more engaged in the business. Everyone’s role is important; otherwise, their job would be unnecessary. A mission statement gives them that indispensable sense of their place in things.
It Cultivates Continuous Improvement
Business success doesn’t just happen. It is the result of setting goals, establishing strategies to achieve them, and conducting reviews of wins and, more importantly, losses. A business that keeps repeating the same mistakes is doomed to fail.
Quality improvement in business first requires a yardstick. What constitutes success, and how will you recognize it? You must have something to measure performance against.
Your mission statement is the ultimate yardstick. That’s because every success or failure should be considered within the scope of your mission. Moreover, brainstorming solutions that may improve performance should be done in the context of what your business is about.
At every step, stakeholders can ask: “What changes can we make to better support our mission?” If they keep asking the question, they’re organically creating a culture of continuous improvement. A business never just arrives; it keeps making itself better during the journey.
Making It Your Mission
Amid the daily demands of keeping a business afloat, creating or revisiting a mission statement can seem somewhat esoteric. However, a mission statement is not just something you slap into a business plan or annual report. It’s a statement that gives your business — and everyone involved in it — a singular sense of purpose.
If you believe Henry Ford’s assertion that people moving forward together creates success, you aren’t alone. But you have to ensure they all fully and clearly understand what they’re pulling for. Fortunately, there’s nothing at all impossible about this mission.
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