Skip to content

Characteristics of a Mission Statement

A mission statement is a critical component of an organization's strategic management process. It serves as a declaration of the organization's purpose, guiding its actions and decisions. Below are the key characteristics that define a strong and effective mission statement.

1. Declaration of Attitude

  • Broad in Scope: A mission statement is typically broad in scope for two main reasons:
  • It allows for the consideration of a range of feasible alternative objectives and strategies.
  • It is designed to reconcile differences among the diverse stakeholders within an organization, ensuring alignment and reducing conflict.

2. Customer Orientation

  • Focus on Customers: A good mission statement clearly describes the organization's purpose in relation to its customers, outlining how it intends to meet their needs through its products or services.
  • Reflecting Customer Anticipations: It should reflect the expectations and anticipations of customers, showing that the organization is committed to fulfilling those needs.
  • Utility of Products: Effective mission statements identify the utility or benefit that the firm's products or services provide to its customers.

Examples of Customer-Oriented Mission Statements:

  • AT&T: Focuses on communication rather than just telephones.
  • ExxonMobil: Emphasizes energy rather than limiting to oil and gas.
  • Union Pacific: Centers on transportation rather than just railroads.
  • Universal Studios: Highlights entertainment rather than just movies.

3. Characteristics of a Mission Statement

A strong mission statement typically embodies the following nine characteristics:

  1. Broad in Scope: Avoids specific monetary amounts, numbers, percentages, ratios, or objectives to maintain flexibility and inclusivity.

  2. Concise: Less than 250 words in length, ensuring it is succinct and easily understood by all stakeholders.

  3. Inspiring: Should inspire and motivate employees and stakeholders, conveying a sense of purpose and ambition.

  4. Utility-Oriented: Clearly identifies the utility of the firm's products or services to its customers, emphasizing the benefits provided.

  5. Social Responsibility: Reveals the firm's commitment to being socially responsible, demonstrating care for society and its stakeholders.

  6. Environmental Responsibility: Shows that the firm is environmentally responsible, reflecting its commitment to sustainability and environmental stewardship.

Nine Components:

The mission statement should address the following components:

  1. Customers: Who the company serves.
  2. Products or Services: What the company offers.
  3. Markets: Where the company competes.
  4. Technology: The technology used to deliver products or services.
  5. Concern for Survival/Growth/Profits: How the company plans to sustain itself.
  6. Philosophy: The core values and beliefs that guide the company.
  7. Self-Concept: The company’s strengths and competitive advantages.
  8. Concern for Public Image: How the company is viewed by the public.
  9. Concern for Employees: The company’s commitment to its workforce.

These characteristics collectively ensure that a mission statement serves as an effective guide for an organization's strategic direction, helping to align the efforts of all stakeholders toward common goals.

Ask Hive Chat Chat Icon
Hive Chat
Hi, I'm Hive Chat, an AI assistant created by CollegeHive.
How can I help you today?
🎶
Hide