There has been a trend to try to create one overarching company mission statement. However, they often become “wall art” hanging in the office of little practical use in operating the company. Consequently, it may be useful to use mission statements to delineate different phases of a company’s life.
Mission statements are very simple, which makes them exceptionally hard to formulate. There are five components to a good company mission statement.
Components Of A Good Company Mission Statement
- WHO: While this may seem self-explanatory, you want to be explicit about to whom this mission applies particularly if you have different operating divisions of a company. This helps define what resources may be available. In addition, different people/organizations have different risk tolerances: What are the risks? What risks are you willing to take? Can you mitigate the risks?
- WHAT: What is it that you are actually trying to accomplish? It defines your essence and focuses you effort. Some tasks are explicit, but you must also consider subordinate as well as implied tasks. Clearly differentiate between Core Business and Peripheral activities and be careful that you do not too broadly define your requirements.. This will help align you stay within your capabilities-constraints.
- WHEN: There is always a “due date.” You should delineate over what time-frame the plan is relevant. Is the plan phased? This gives you a point of reference for future evaluation.
- WHERE: Location matters. In today’s world location can be virtual or real. It helps defines the scope of communications and logistical requirements, as well as the other “players” and competitors.
- WHY: What are you doing this for? profit, cash flow, or even blue sky intangible benefit. This is particularly important when you are dealing with non-core business operations
The “how” is not actually part of the company mission statement. Rather, it is your Operational-Business Plan. It is defined by your analysis of Courses of Action/Alternatives.